An Overview of 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.

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 document 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 Documents Required for Legal Metrology Dealer License

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

• Details of the applicant;
• 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 documents 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;
• Documents 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 document is required in the Partnership or Proprietorship Firm;
• Copies of Appointment Letters of employees along with qualifications, photographs, and experience certificates, if any;
• Site Plan of the premises;
• Professional Tax or GST Registration or Labour License;
• Trade License from the respective ADC, in case of Non-Tribal.

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 documents.
• After receiving the application, the Inspector will examine all the documents & 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 documents and the Inspection Report of the Inspector, he shall inspect all the documents 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 documents 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.

Renewal of Dealer License

The Dealer License is valid for a minimum period of 1 year and a maximum period of 5 years. Every application for the renewal of the Legal Metrology Dealer License shall be submitted only in the prescribed form i.e., Form LD-2, with the following documents:

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

Why Corpbiz?

Preparing documents, applications, and other major & minor tasks is tedious and time-consuming. Moreover, without regular follow-ups, the application procedure may take around 2-3 months to complete. This is where Corpbiz comes in, Corpbiz has a presence in all states across India and we will help you prepare & file the application on your behalf.