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TAXAJ Corporate Services LLP - Financial Doctors

Legal Metrology Dealer License

Legal Metrology is the legal requirement for weighing and measuring instruments. The Legal Metrology Department is responsible for implementing the rules & regulations regarding weights & measures devices, instruments, and equipment. Legal Metrology has stringent rules regarding weighing & measuring instruments in India. Any dealer must obtain a Legal Metrology Dealer License from the Department of Legal Metrology to conduct their operations.


The Legal Metrology Dealer License applies to an individual or a company involved in the marketing & trading of weights & measures. The provision for issuing Dealer License comes under the State Legal Metrology (Enforcement) Rules, 2011 of the Legal Metrology Enforcement Rules, 2010. In case the manufacturer or importer wants to act as the dealer of the equipment, then they must also obtain the Dealer License in addition to the Manufacturer or Importer License.

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About This Plan

Filing of Forms with Legal Metrology for Dealer License

Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

Depends upon case to case basis

Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered
Filing of Forms with Legal Metrology for Dealer License
Who Should Buy
  • Business or Individual planning to deal into products in India
How It's Done

    • Purchase of Plan
    • Expert Assigned
    • Share the details as requested
    • Preparation of Form and Filing with Legal Metrology
Documents Required
  • Business Proof of the Applicant Entity.
  • PAN & GST of the Applicant Entity,
  • PAN & Aadhaar of promoters of the Applicant Entity.
  • NOC from the landlord of the Applicant Entity in case of rented business premises.
  • Copy of duly registered rent agreement in case of rented business premises.
  • NOC from the (Original manufacturer of weighing and measuring instruments whose goods the dealer will sell).
  • Dealership Agreement with the (Original manufacturer of weighing and measuring instruments whose goods the dealers will sell).
  • Copy of Model Approval of the weight or measure which you intend to sell.

Why Dealer License Is Required?

The selling of any weight and measurement items in India is regulated under the Legal Metrology Act, of 2009. The free sales of any weight and measurement items in India is not allowed, but it is regulated by the respective State Governments in which the seller of such weight and measurement items is operating its business. Under section 23, of the Legal Metrology Act, 2009. Every dealer of weight and measurement items must obtain the license from its respective zonal of the Legal Metrology Department of its state. Before commencing the sales of any weight and measurement items.


It is pertinent to note that any importer of weighing and measuring items is also required to obtain a dealer license. It may be possible that any importer of weighing and measuring instruments may be able to import such weight and measurement items in India without the requirements of a dealership license, but to sell such weight and measurement items will certainly require the dealer license.

What Is The Procedure Of Obtaining A Dealer License?

The dealer license is obtained under section 23, of the Legal Metrology Act, 2009, and is issued by the state controller of the Legal Metrology Department of the respective states in which such a dealer is operating his business. In India, many of the State Governments have the online procedure for applying the dealer and some of the states have the offline procedure. But in all cases, the procedure of issuance of the dealer license is not completely online.


As it involves inspection by the local state Legal Metrology Officers. Only after the physical verification of the document Legal Metrology Officer will generally recommend the application for the final issuance of the license. Many of the states while applying for the dealer license ask for a copy of the dealership Agreement from the original equipment manufacturer for which the dealer is applying for the dealer license. Further, the Government Authority may also ask for a copy of the Non-Objection Certificate (NOC) from the manufacturer of weight and measurement items.


Apart from the documents, the Legal Metrology Officer will also ask whether the address on which the dealer license is applied is the commercial address or the residential address as the commercial address is generally acceptable by the Legal Metrology Department.

Renewal Of Dealer License

The validity of the dealer license is a minimum of 1 year and a maximum of 5 years. If you want to renew your dealer license then you have to fill a Form LD-2, in a prescribed manner. On the other side, we are here for you to fill in all the details and work on your behalf for registration. The following documents are necessary for dealer license renewal:-

  • Original Dealer License;
  • Professional Tax Registration;
  • GST Registration;
  • Labour License;
  • Valid Training License in case of non-tribal

Requirements for Obtaining Legal Metrology Dealer License

Following are some essential requirements for obtaining Legal Metrology Dealer License:


• Premises

  1. Proof of Legal Possession of the Premises: The applicant must have the legal and physical possession of the premises and provide the latest Sale Deed or Rent Receipt or House Tax Receipt or any other necessary paper and NOC (No Objection Certificate) from the property owner.
  2. Minimum Area Required for the Premises: The shop premises should be appropriate & enough and must be of autonomous entrance without opening any residential part of the premises.
  • Constitution of the Firm: If the firm is not a proprietorship concern, the firm should submit a Partnership Deed copy duly attested by the Notary or First Class Magistrate or Oath Commissioner & in the case of Private Company/Limited Company, MOA (Memorandum of Association) approved by the MCA or Ministry of Company Affairs, Government of India.
  • Site Plan: The applicant or dealer must provide a site plan of the premises.
    Financial Status Proof: The applicant must provide proof of financial status to sell any weights & measures. The Licensing Authority shall consider the financial status before issuing the Legal Metrology Dealer License.
  • Sales Tax Registration Number. The applicant shall provide a copy of the Sales Tax Registration Number if registered with the concerned department.

Vital Necessary Papers Required for Legal Metrology Dealer License

To apply for a Dealer License, the following necessary papers must be attached with the Form LD-1:

    • Email Address
    • Details of the applicant;
    • Mobile Number
    • Address proof of the applicant;
    • Two passport size photos of the applicant;
    • Affidavit stating that the applicant will follow the rules & norms of the Act under which the Dealer License is sought and that the details provided is correct;
    • Model Approval Certificate of weights & measures to be dealt with;
    • If the applicant or the dealer is the owner of the premise, the necessary papers such as Tax Receipt must be submitted. However, if any other member of the family owns the premises, then their duly notarised Consent Letter and a record of ownership are required;
    • If the premises are for rent, then a copy of the rent agreement is required;


    Necessary Papers related to the business such as:

  1. Registration Certificate of industry;
  2. If the unit exists within the village panchayat area, Registration under the Shops & Establishment Act shall be needed and NOC is also required from the Gram Panchayat.


In the case of companies, an Incorporation Certificate is required and also MOA & AOA shall be required;

  • A registered necessary paper is required in the Partnership or Proprietorship Firm;
  • Copies of Appointment Letters of employees along with qualifications, photographs, and experience certificates, if any;

Procedure for Obtaining Legal Metrology Dealer License

The procedure for obtaining Legal Metrology Dealer License varies from state to state. Different states are different application fees and timelines for the approval of a Dealer License.


Following is the general procedure for obtaining the Dealer License under Legal Metrology:

  • Every individual, company or firm who intends to deal in weights & measures shall make an online application to the officer of the Inspector of Legal Metrology within their respective District or Civil Sub-Division accompanied with all the relevant necessary papers.
  • After receiving the application, the Inspector will examine all the necessary papers & inspect the premises of the applicant & prepare an inspection report & the same shall be submitted to the Office of the Assistant Controller of Legal Metrology within 15 working days from the receipt date of the application.
  • The Assistant Controller, on receipt of the application along with all vital necessary papers and the Inspection Report of the Inspector, he shall inspect all the necessary papers and forward them to the Controller within 5 working days with a necessary recommendation.
  • The Controller or Officer authorised on their behalf after inspecting all the necessary papers and the inspection report of the Inspector of Legal Metrology believes that a license can be issued to the applicant considering the recommendation made by the Assistance Controller; the licensing authority shall communicate to the applicant for online payment of the application fees.


After depositing the fee, the Dealer License will be granted.


Note: If a dealer wants to trade & market weights and measures in more than one state in the country, then the dealer must obtain a separate Dealer License for each desired state of operation.

Legal Metrology Act's Provisions for Dealer License

The Legal Metrology Act governs the regulation as well as enforcement of weights and measures production, which includes the Dealers' License. Here we are detailing certain provisions for Dealer Licenses as per the LMA Act in the following pointers:

Dealership License Holding

A Dealer must not manufacture, repair or sell any weight or measure unless he holds a valid Dealership License from the Controller of Legal Metrology. If you desire to obtain the license, you must apply to the Controller of Legal Metrology in the prescribed format.

Dealer Application Filing

The Controller can grant or refuse the Dealership License. He can also suspend or cancel a license registered with the LMD. But the Controller must allow the Dealer to be heard.

Dealer License Validity & Transferability

A dealer's license is valid for five years unless The Controller cancels it or the Licensee surrenders it. The Dealer can transfer his license to another person only with prior approval from the LM Controller.

Record Maintenance

A Licensed Dealer must maintain all transactional records relating to the following affairs of the weights and measures. He or She must also produce the records when required by the Authorized person.

  • Manufacture
  • Repair
  • Sale
  • Purchase
  • Transfer

A dealer must display the license at his place in a prominent manner.