The dealer license is mandatory for any person or company involved in the trading and marketing weights and measures. To obtain the dealer license, an applicant shall follow the provisions of the Legal Metrology Act. Suppose the importer or manufacturer wants to act as the dealer of the weighing equipment. In that case, they must also obtain the dealer license under legal metrology Act, 2009 and the importer and manufacturer license.
What Is A Dealer License Under Legal Metrology Act, 2009?
The term “dealer” is defined under section 2(b) of the Legal Metrology Act, 2009[1]. It states that any person or business entity dealing directly or otherwise in the business of buying, selling, supplying or distributing weights or measures for cash or commission or remuneration or deferred payments with a commission agent or importer or a manufacturer who sells, supplies, distributes, or otherwise delivers any weight or measure items manufactured by him or business to any person other than a dealer.
As per Legal Metrology Act, every person involved in trading weights and measuring items should mandatorily apply for a dealer license. Also, it is necessary to obtain both licenses for a manufacturer or importer willing to act as a dealer for a commodity, i.e. dealer license and manufacturer and importer license.
Every state has its timeline for the approval of dealer licenses and application fee structure. Each license is valid from a maximum of 1 year to a maximum of 5 years.
If a dealer wants to trade or market their product in more than one state, then the dealer must necessarily obtain a separate dealer license from each state.
Requirement of Dealer License under Legal Metrology Act, 2009
Registration of a company as a manufacturer, importer, or packer of weights or measures and measuring instruments and devices must be registered under Legal Metrology. Similarly, the dealer who handles weights or measures should also possess a Legal metrology license. The government authorities have devised a systematic procedure for registering a company under Legal Metrology.
Document Required For a Dealer License under Legal Metrology Act, 2009
- Certificate of registration of the company
- Registration under the Shops and Establishments Act
- NOC from Gramapanchayat / SPCB
- Submission of documents regarding proprietorship or Registered partnership deed or memorandum of association (MOA) and articles of association (AOA).
- Production of ownership documents
- Registered rent license agreement or lease agreement
- A family member owns NOC from the owner or NOC of the members of the premise.
- PAN Card Copy of proprietorship Company
- Profession tax registration certificate
- Self-declaration by the company or person about whether any offence is pending against him in court or a police station.
- Self-declaration about whether the applicant has violated any of the provisions of the Legal Metrology Act, 2009 or rules made there under
- Latest electricity bill.
- Directors’ PAN & Aadhar Card (if applicable).
Process for obtaining the dealer license under legal metrology Act, 2009
The procedure for obtaining the dealer license varies from state to state, and different states have different application fees and timelines for license approval. Once the license is issued, the dealer license is valid for a minimum period of 1 year and a maximum of 5 years.
If a dealer aims to trade and market weights and measures in more than one state, they must apply for a separate dealer license for each desired state where they establish their business.
The dealer can apply for the license along with the relevant documents to the controller or officer of the legal metrology department. After analysing and verifying all the documents, the controller grants the dealer license.
The Benefits of Dealer License under Legal Metrology Act, 2009
- The dealer license may reduce the transaction cost by doing business with proper measuring equipment, which may reduce time and expense.
- It regulates commercial activity by ensuring and controlling any unethical or unlawful business activities.
- Increases government revenue
- Technical Problems of the traders are eliminated. Reducing the importer hurdles may boost the nation’s self-esteem and encourage people to participate in international trade.
- Establishing credibility with customers, where the license will create a positive image among the consumers about their products and also helps to create a robust commercial relationship.
- Simplifies the trading process
- The dealer license promotes the welfare of the consumers.
Issuance of a Dealership License
After receipt of the Form duly annexed with all the documents mentioned above, the licensing authority or the controlling officer shall scrutinise the application and the requisite documents. If the application form and attachments are as accurate as required, the authority will issue a license within 20 days of receipt.
However, there might be a possibility that the authority will only accept the application if it is compliant with all or any of the requisites provided in the Act. The reason for such rejection shall be duly communicated within 15 days to the applicant after rejection. The process of issuing the license, to the max, shall be completed within the scheduled time.
Renewal of Dealer license
For the renewal of the dealer license, an applicant must submit Form LD2 along with the previous dealer license. An applicant must pay Rs. 100/- for the renewal of the dealer license.
Conclusion
For any dealer who wishes to handle weights or measures business, then they must get a dealer license under legal metrology Act, 2009. The rule has definite and stringent regulations related to Weighing and measuring instruments. Any importer, dealer and manufacturer dealing in weighing and measuring instruments should get the license as per the rule.
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