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How To Get Dealer License In India?

Obtaining a dealer license in India is like unlocking a door to the market of possibilities. Because in today’s information world, every consumer ensures safety and satisfaction. So to build trust in consumers a dealer license is mandatory. This guidance works as a trusted companion on your journey to obtain the dealer license simply. Together, let’s check the process and gain the knowledge of how to get dealer license in India step by step.

What is a Dealer License?

A dealer license is like a special permit given by the government to people or businesses. It lets them sell, buy, or trade certain things. It’s like getting a big thumbs-up from the authorities, saying, “You’re good to go!” With this license, they can do their thing, knowing they’re playing by the rules and making everyone happy.

What Is The Importance To Get Dealer License In India?

Here we are explaining all the points to get dealer license in India:-

  • Legality and Compliance: A dealer license provides legal authorization to conduct business, preventing penalties and legal liabilities.
  • Consumer Protection: It ensures that consumers are dealing with licensed and regulated traders, minimizing the risk of fraud or malpractice.
  • Business Reputation: A valid dealer license enhances a business’s credibility and reputation, fostering trust among customers and partners.

What Are The Functions of Dealer License?

Here are the Dealer License Functions:-

  1. Authorizing the sale, purchase, or brokerage of designated goods or services.
  2. Ensuring compliance with industry-specific regulations and standards.
  3. Facilitating the movement of goods across state borders.
  4. Safeguarding consumers’ interests and promoting fair trade practices

Who is Eligible to Apply For a Dealer License?

Any individual, partnership firm, limited liability partnership (LLP), or company can get dealer license if they meet the eligibility criteria specified by the issuing authority.

Who Can Issue a Dealer License?

Depending on the type of goods or services involved, dealer licenses can be issued by various authorities, such as:

  • Ministry of Commerce and Industry
  • State Governments
  • Municipal Corporations
  • Commodity Boards
  • Export Promotion Councils

List The Benefits of a Dealer License

Increased Business Opportunities: It widens access to new markets and allows for the expansion of business activities.

Access to Government Schemes: Licenced dealers may be eligible for government subsidies, incentives, and support programs.

Enhanced Credibility: A dealer license demonstrates a commitment to ethical business practices and boosts consumer confidence.

Legal Protection: It provides legal protection against unfair competition or harassment from unlicensed traders.

Required Documents for Dealer License Application

The specific documents required to get dealer license application may vary depending on the issuing authority. However, common requirements include:

  • Proof of identity and address
  • Business registration documents
  • Proof of financial stability
  • GST registration certificate
  • NOC from relevant authorities (if applicable)

How To Apply For Dealers License?

  • Identify the Issuing Authority – Determine the appropriate authority responsible for issuing dealer licenses for the specific goods or services you wish to trade.
  • Gather Required Documents – Collect all the necessary documents listed in the previous section.
  • Complete Application Form  – Obtain the application form from the issuing authority and fill it out accurately.
  • Submit Application – Submit the completed application form along with the required documents to the issuing authority.
  • Processing and Verification – The issuing authority will process the application and verify the submitted documents.
  • Issuance of License – Upon successful verification, the dealer license will be issued to the applicant. 

What Is The Validity Period Of Dealers License?

The validity of a dealer license depends on who issues it. Usually, it lasts from one to five years. Just like a favourite song on repeat, it keeps the business humming smoothly. But remember, before it runs out, it’s time to hit the renewal button to keep the good times rolling without any hiccups.

What Is The Cost Of Dealer License?

The cost of obtaining a dealer license varies depending on the authority and the type of lmpc license applied for. Otherwise, you can contact the legal metrology team and get answers to all of your queries.

Dealer’s License Eligibility Criteria 

To be eligible for a dealer license, the applicant must:

  1. Be a citizen of India or a registered business entity in India
  2. Possess a clean criminal record
  3. Meet the minimum capital requirements specified by the issuing authority
  4. Have a physical business address in India

What Are The Penalties For Non-Compliance?

Operating without a valid dealer license can result in penalties, including:

  • Fines and imprisonment
  • Seizure of goods
  • Revocation of other licenses
  • Damage to reputation

Why Choose ELT Corporate for Dealer License Services?

ELT Corporate is a leading legal service company that excels in assisting clients with dealer license applications. Our experienced team of professionals provides the following:-

Personalized Consultation: Comprehensive guidance tailored to your specific business needs

Document Compilation: Professional assistance in gathering and preparing all required documents

Application Filing: Expert handling of your application submission, ensuring accuracy and compliance

Renewal and Modification: Seamless management of license renewals and modifications


Obtaining a dealer license in India is essential for businesses engaged in trade activities. It ensures legality, protects consumers, enhances reputation, and opens up new business opportunities. By following the steps outlined in this guide and seeking professional assistance from ELT Corporate, you can navigate the process effectively and secure your dealer license.


Is it Mandatory To Obtain a Dealer License in India?

Yes, a dealer license is mandatory for individuals or businesses engaged in the sale, purchase, or brokerage of certain goods or services.

Who can apply for a dealer license in India?

Any individual, partnership firm, LLP, or company that meets the eligibility criteria can apply for a dealer license.

What are the common documents required for a dealer license application?

Proof of identity, business registration, financial stability, GST registration, and NOCs (if applicable).

How long does it take to process a dealer license application?

The processing time varies depending on the issuing authority but typically takes several weeks to months.

Can a dealer license be renewed?

Yes, dealer licenses can be renewed before their expiration date to ensure continuity of business operations.