Introduction: Legal Metrology

Want to obtain a dealer license to sell weight and measurement products but don’t know how to do it? Well, if yes, then you no longer need to worry as we’ve got you covered. Let’s first start with understanding what actually defines a dealer. As per the Legal Metrology Act of 2009, every person involved in buying, selling, supplying, or distributing weights and measures for commercial purposes can be considered a dealer and is required to obtain a legal metrology dealer license to carry out these activities as a legal entity. With this article, we will discuss with you everything about a Dealer License, including the compliances one must comply with to obtain it, alongside the requirement of documents. So, without wasting any other second, let’s start.

--------------Blog Contact Form-------------

Legal Metrology Dealer License 

If one asks about the importance of measurements in our daily lives, then he should surely consider the scenarios, such as medical check-ups, sports competitions, and controlling electronic appliances’ temperature, where even a minor mistake in measuring on anyone’s part can not only alter the expected results but also lead to chaos for some people. You know what we meant, right! Just imagine you go for a critical medical test and the result you get is completely different from the expected ones and unfortunately, they are not good. Just think, what would be your reaction and the consequences of this? That’s the reason the Legal Metrology Department, established under the Ministry of Consumer Affairs, has put several rules and norms in the country regarding the activities associated with Weight and Measure equipment, and one of them is Dealer License. A Dealer license is also bound to be obtained for those manufacturers and importers of the weighing and measuring equipment, who seek to deal in them. And, to get a dealer license, every individual or company needs to follow the provisions of State Legal Metrology (Enforcement) Rules, 2011 of the Legal Metrology Enforcement Rules, 2010.

Consequences and Penalties for Non-Compliance in Dealer License

Here, someone might ask, “Okay, we get it. A dealer License is mandatory. But what about the case when one does not comply with it or runs his business activities without obtaining one? Are there any penalties for that?” Yes, there are several as per the Legal Mandatory Act of 2009 and it wouldn’t be wrong to say that they are one of the actual reasons people take care of all the prescribed regulations and norms. If a business entity fails to register or gets mandatory approvals from the State Controller or Director of Legal Metrology, then a penalty of Rs. 4000 will be imposed on it. And, in case it does not use the standard units for declaration, then a fine of Rs. 2000 to 4000 can be imposed on it as per the case. 

The point to be noted here is that for the first offense of non-declaration, the penalty sum can go up to Rs. 25000 and for the second time, it can be Rs. 50000. Not just that, the penalty sum can be increased further and include imprisonment as well. 

Documents Required to Get Dealer License Under Legal Metrology

• Two passport-Size Photographs of the applicant individual.
• Identity Proof of the applicant, such as Aadhar Card, PAN, etc.
• Address Proof of the applicant.
• Date of Birth (DoB) proof of the applicant.
• Ownership proof of the business facility (If it is on rent, then Rent or Lease Agreement)
• An Affidavit stating that the applicant will comply with all the regulations and norms of the act under which the license is required and that the information given is correct.
• An Affidavit stating that the applicant has never been punished by any Court nor that is any criminal proceeding pending against him/her in any Court.
• Approval Certificate of models of weights & measures to be dealt with.

Additional Documents Associated With Business

• Industry Registration Certificate
• If the business unit is located within the Village Panchayat Area, then Shops & Establishment registration is mandatory, along with a No Objection Certificate from the relevant authority, which is Gram Panchayat in this case.
• Partnership Deed, also known as Partnership Agreement, if the business entity is a Partnership Firm.
• If the business entity is a company, then the Certificate of Incorporation is also required, along with its Memorandum and Articles of Association.
• Copies of employees’ appointment letters and their qualifications, experience certificates, passport-size photos, and if any.
• Site plan of the business facility from the architecture.
• GST Registration
• Trade License from the respective ADC (Autonomous District Council), in case of Non-Tribal.

Read Our Blog: How to Obtain a Legal Metrology Certificate in Chennai

Process to Obtain a Dealer License Under Legal Metrology

• Any entity that seeks to obtain a dealer license to deal in weights and measures needs to submit an application form in the format appended (LD-1) to the Legal Metrology Inspector within its respective District or Civil Sub-Division, along with attaching all the relevant documents.
• Upon receiving the application form, the Legal Metrology Inspector will go through the attached documents and information, and then inspect the business premises of the application. Accordingly, he will prepare an inspection report, containing his recommendations. 
• Thereafter, the inspector will submit the inspection report to the office of the Assistant Controller of Legal Metrology within fifteen working days from the date on which he received the application from the applicant.
• After that, the Assistant Controller will check the inspection report with the application form and the documents attached to it. Within five working days from the date of it, he will forward the application, inspection report, and documents, along with the recommendations to the Controller.
• If after considering the recommendations of the Assistant Controller, Inspector, and the reports with documents, the Controller finds it satisfactory enough to issue a dealer license to the applicant, then the applicant would be required to deposit Rs. 500 as a license fee to the Head of Accounts.

Note:- In case any objection is raised by the Inspector, Assistant Controller, or the Controller, the applicant will get the opportunity to rectify it. 

• Once the applicant deposits the license fee, the dealer license will be issued to him. 

Conclusion

Hope that you have read this article to the end and found it enlightening enough to understand the requirement of compliance for a Dealer License under Legal Metrology. If you’re thinking of dealing in measuring and weighing instruments, then make sure you get a Dealer license to ensure your business activities are in compliance with the prescribed rules and you’re safe from any legal consequences. And, in case you need any help with that, feel free to get in touch with Corpseed, which has teams of business and legal consultants, and can help you at every stage of the process.