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Legal Metrology dealer License

Want to obtain a Legal Metrology Dealer License to sell weight and measurement products but have limited knowledge? Connect with Legal Metrology Consultants and acquire the Dealer License.

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Legal Metrology Dealer License: An Overview

According to this act, every person dealing with the business of weight and measure items shall obtain a legal metrology dealer license. Additionally, it is mandatory for any person willing to act as a dealer for a commodity to obtain both licenses for manufacturer and importer, such as a legal metrology dealer license and manufacturer or importer license.

The term dealer is specifically defined under Section 2(b) of the Legal Metrology Act, 2009; it says that any person engages directly or indirectly in the business of buying, selling, supplying, or distributing of weight or measure either for cash, commission, remuneration, etc. are known as a dealer under Legal Metrology Act.

Every state has its specific timeline for approval of license and application fees. The validity of the license stays for a maximum of one year to a maximum of five years. Further, if a dealer is seeking to trade or market his or her product to multiple states, thus it is the responsibility of the dealer to obtain a separate legal metrology dealer license from each state.

What is Legal Metrology?

Metrology is a science of measurement; Legal Metrology is a regulation that governs and controls the measurements and measuring instruments. Legal Metrology ensures transparency and balance between traders and consumers, reducing disputes and transaction costs.

It complements scientific and industrial measurement and supports practical applications of measurements within the community. Legal Metrology also provides protection for public safety, the environment, consumers, traders, and fair-trade practices.

Therefore, Legal Metrology's primary objective is to safeguard both consumers and suppliers in weighing and measurements items in the business.

What is Dealership Certification?

A Dealership Certification is a license according to the Legal Metrology Act. It provides permission to dealers and sellers of measuring and weighing instruments. It indicates a Certificate of Approval for the instrument from the concerned authority, ensuring instrument verification, accuracy, and reliability for general public usage.

Every individual seeking a dealership certificate needs to comply with and follow provisions stated in the State Legal Metrology (Enforcement) Rules, 2011.

What are the Provisions of a Legal Metrology Dealer License?

This dealer license is governed and regulated according to the Legal Metrology Dealership license. Below are certain specific provisions for a legal metrology dealer license:

1. Holding of Dealership License

Without obtaining a dealership license from the controller of Legal Metrology, a dealer is not eligible to manufacture, repair, or sell any weight or measure. If you desire to obtain a dealer license, you must apply before the Controller of Legal Metrology according to the prescribed format.

2. Filling out the Dealership Application

This dealership license can either be granted or refused by the Controller if not fulfilled according to the laws and regulations. Further, he can also suspend or cancel a license already registered with the Legal Metrology Department. However, the Controller must allow the dealer to be heard upon such cancellation.

3. License Validity & Transferability

The maximum period of dealer license validity is five years unless a license is cancelled by the controller or if the licensee surrenders the same. However, with prior approval from the Legal metrology controller, a dealer can transfer his existing license to another person.

4. Record Maintenance

It is also mandatory for a licensed dealer to maintain a record of the transactional history connecting to the business of weights and measures. Such a dealer must also be able to produce the records whenever the authorized person asks for them. A dealer must also display his dealer license certificate at his place in a prominent manner.

Requirements for Obtaining a Legal Metrology Dealer License

Here, given below are some of the requirements for obtaining a legal metrology license:

  • A legal proof or document of the business premises, such as a Sale Deed/Rent Receipt/House Tax/NOC from the property owner.
  • Must meet the minimum area requirement for the business premises.
  • A copy of the Partnership deed if not Proprietorship firm and in case of a Private Company/Limited Company, MOA approved by the Ministry of Company Affairs (MCA), Government of India.
  • A proof of financial status and a business site plan.
  • A Sales Tax Registration Number, if applicable.
  • Minimum two passport-size photographs of an applicant.
  • Applicants' identity proof (Aadhar Card, PAN Card, etc).
  • Applicant address proof.
  • Applicant proof of date of birth.
  • Business facility proof of ownership (in case of rent, a rent agreement has to be submitted)
  • No Objection Certificate (NOC) from the original manufacturer of weighing and measuring instruments whose goods the dealer is going to sell.
  • A copy of model approval of the weight or measure that an applicant intends to sell.
  • Applicant entity business proof.
  • GST Registration
  • Partnership Deed or Partnership Agreement in case the business entity is a Partnership Firm.
  • After submitting an application for a dealer license to the concerned authority, the legal metrology officer must physically verify the documents submitted by the applicant.
  • Thus, after due verification, if everything seems okay, the concerned officer will give the final call for the issuance of the dealer license.
  • Further, most states ask for a copy of the dealership agreement from the original equipment manufacturer from the applicant seeking a legal metrology dealer license.
  • The concerned authority may also ask for a copy of the NOC (Non-Objection Certificate) from the weight and measurement items manufacturer.
  • Apart from the necessary documentation, the concerned officer will also inquire or ask the applicant whether the address on which the legal metrology dealer license is applied is commercial or residential property, as the commercial address is generally preferable or accepted by the Department of Legal Metrology.
  • Lastly, if the concerned authority raises any objection, the applicant for a dealer license will be given a chance to rectify it.
  • Once the applicant deposits the stipulated license fee, a dealer license will be issued.

How to Renew Legal Metrology Dealer License?

According to the Legal Metrology Act of 2009, a legal metrology dealer license is valid for a minimum of one year and a maximum of five years. To renew a dealer license, an applicant must fill out Form LD-2 in a prescribed manner. On the other hand, the legalmetrology.org expert's team is here to help applicants fill in the details and conduct the procedure for a renewal license or a dealership license.

Some of the documents required for renewing a dealer license are the original dealer license, professional tax registration certificate, GST registration, labour license, and a valid training license in the case of non-tribal.

What Happens in the Case of an Unregistered Dealer?

If any person is engaged in the business of manufacturing or selling weights and measures without obtaining a valid license, they will be legally liable and shall be imprisoned for one year along with a fine or penalty of Rs. 10,000/- (Ten thousand).

Why Legal Metrology Dealer License is Required?

The Legal Metrology Act of 2009 was introduced to govern the selling of weights and measurement items in India. It indicates that no weights and measurements can be sold without obtaining a license.

According to Section 23 of the Legal Metrology Act, 2009, every dealer of a business engaging in weight and measurement items must obtain a license from its respective jurisdiction of the Department of Legal Metrology of its State.

Therefore, a dealer license has to be obtained before commencing a business of sales of weight and measurement of items.

Moreover, an importer of weighing and measuring items is also required to obtain a dealer license in order to sell such weight and measurement items.

Compliances to Follow After Obtaining the Dealer License

Every dealer, after obtaining a dealer license as per the Legal Metrology Act, 2009, must keep the prescribed records of selling weight and measurement items. It is the responsibility of the dealer to ensure that he sells only those weighing and measuring items that are duly model approved by the Ministry of Central Legal Metrology Department, and also, such measuring and weighing items must obtain a stamp and verification as per the Legal Metrology Act,2009.

What are the Penalties for Non-Compliance in Dealer License?

It is indeed mandatory for every business dealing with weights and measurement items to obtain legal metrology according to the Legal Metrology Act of 2009. What happens when a business operates without obtaining the dealer license, are there any penalties? A business operating without a dealer license has to face legal liabilities.

A penalty of Rs.4000/- (Four Thousand) will be imposed if the business entity fails to obtain mandatory approvals from the State Controller or Director of Legal Metrology.

If the standard units are not met according to the Legal Metrology Act, 2009, a penalty of Rs 2000/- (Two Thousand) to Rs.4000/- (Four Thousand) may be imposed, depending on the case.

To sum up the first offense of non-complying according to the Legal Metrology Act, 2009 the legal penalty can go up to Rs.25000/- (Twenty-Five Thousand), and for the second time, it can be Rs.50,000/- (Fifty Thousand). Additionally, along with the penalty, imprisonment is also imposed in case of repeated offence.

Fee Structure for Legal Metrology Dealer License

The fee structure for a Legal Metrology Dealer License depends from state to state however, the overall cost for obtaining a dealer license includes application fees, documentation, professional fees, or consultation fees. Further, the basic government fees cost from a minimum of Rs 100 (Hundred) to a maximum of Rs. 5000/- (Five Thousand). To get or receive full quotations of our legal metrology services, consult and contact our experts today.

What is the Timeline for Obtaining a Legal Metrology Dealer License?

The timeline for obtaining a legal metrology dealer license depends from state to state, however, preparing documents and applications is indeed time-consuming, depending upon the availability of the necessary documents, one can obtain a dealer license within 2-3 months.

Reasons to Consider Legal Metrology Consultants for Dealer License

Legal metrology consultants encompass a team of experts with an expertise in dealing with Legal Metrology laws and regulations presence in PAN India both physically and virtually through its professional experts. We have a robust system of providing services in legal metrology registration certificates and various other related issues and queries. So far, we have successfully helped 500+ clients in obtaining a dealer license across the states in India.

Our professional experts provide end-to-end advice and guidance & prepare technical documentation with the best practices, ensuring a smooth process with cost-effective measures. Along with the dealer license, we also help clients obtain and apply for any kind of license, such as a manufacturer license, LMPC license, and many more.

Frequently Ask Questions

A dealer under the Legal Metrology Act is a person who is engaged in the business of buying, selling, supplying, or distributing weight and measurement for a commercial purpose.

A dealer License is an official validation issued by the concerned authority to a person or a company to run a business of trading and marketing of weights and measures.

The Dealer License in India is issued by the controller of the legal metrology department of a particular state.

One can get or obtain a weights and measures license by filling out an application as per the Legal Metrology Act, 2009, before the Department of Legal Metrology of a specific state or jurisdiction.

Rule 27 of Legal Metrology states the procedures for importers' registration. However, this registration is mandatory and has to be obtained by every business engaged in importing weights and measuring items.

A legal metrology officer is authorized to inspect and verify the weights and measurement instruments used in commercial transactions or business.

The objective of legal metrology is to govern a standard format of measurements and measuring instruments, ensuring the protection of consumers from unfair trade practices.

Label Compliance under legal metrology means compliance that every pre-packed commodity has to meet all the relevant regulatory requirements according to the Legal Metrology Rules.

Metrology can be divided into three types: scientific, applied, and legal.

Yes, according to section 23 of the Legal Metrology Act, 2009, a person engaging in manufacturing, repairing, and selling any weight or measure must obtain a valid license.

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