A trade license regulates what kind of commercial activity you can run at a location — here's when you need one.
A trade license is issued by the local municipal body and permits a business to carry out a specific trade or commercial activity at a given location. It exists mainly to regulate activities that could affect public health, safety or the surrounding environment.
Gumasta (Shop & Establishment registration) is about proving a business is legally operating from an address — a trade license is about regulating the specific activity carried out there. Many businesses need both.
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