Legal Metrology License for Packaged Goods Manufacturers
In India If you manufacture packaged goods, you must comply with the Legal Metrology Act, 2009. This law ensures fair trade by regulating weights, measures, and packaging standards. Without the proper license, manufacturers risk legal penalties, product seizures, and damaged brand reputation. Getting a Legal Metrology Packaged Commodities License is not just a paperwork requirement — it’s a mark of trust for your customers.
What is Legal Metrology?
Legal Metrology deals with the regulation and accuracy of weights, measures, and packaged goods in commercial transactions. As per the Legal Metrology Act, 2009, manufacturers, packers, or importers must ensure that their goods meet correct weight and labeling standards. This protects consumers from short-measurement fraud and ensures fair competition among businesses. The Legal Metrology (Packaged Commodities) Rules, 2011 further detail how packaging, labeling, and declarations should appear on every product sold in India.
Why is a Legal Metrology License Required?
A Legal Metrology license is mandatory under Section 19 of the Legal Metrology Act, 2009. It ensures that manufacturers comply with standardized packaging declarations — including quantity, weight, maximum retail price (MRP), date of manufacture, and customer care details. This builds consumer confidence and prevents unfair trade practices. Without this license, manufacturers can face heavy penalties under Section 36 (penalty for selling non-compliant packaged goods) and risk product recalls or market bans.
Who Needs to Apply?
As per the Act, any entity engaged in manufacturing, packing, or importing packaged goods must apply for the license. This includes food product makers, cosmetic companies, pharmaceutical manufacturers, electronics producers, and even textile brands. Even if you’re just repacking items, the law applies. Under the Legal Metrology (Packaged Commodities) Rules, 2011, these businesses must ensure their products carry all statutory declarations. Importantly, licenses are state-specific, so if you operate in multiple states, you need separate licenses.
What Are the Key Provisions?
The main provisions are:
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Section 19: No person can manufacture, pack, or import weights or measures without a license.
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Section 36: Penalty provisions — fines up to ₹25,000 for a first offence and ₹50,000 or imprisonment for repeated offences.
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Rule 6, Packaged Commodities Rules, 2011: Mandatory declarations, including name, address, net quantity, MRP, date of manufacture, and customer care contact.
These provisions aim to ensure transparency, prevent cheating, and promote uniform trade practices across the country.
How to Apply for a Legal Metrology License?
The application is typically filed with the Controller of Legal Metrology in your respective state. You need to submit Form LM-1 (for manufacturers), along with documents like company registration certificate, GST registration, PAN card, factory address proof, product details, and packaging designs. Once submitted, the Legal Metrology department inspects your premises and packaging. If all conditions are met, they issue the license, generally valid for five years. Renewal applications must be filed before expiry to avoid penalties.
Documents Required for License Application
To apply, you need:
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Business registration documents (Company/LLP/Proprietorship)
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PAN and GST registration
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Factory premises proof (rent agreement or ownership papers)
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Manufacturing details and product list
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Label or packaging artwork showing declarations
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Affidavit of compliance with Legal Metrology laws
These documents help the department verify that your operations are lawful and compliant with the required standards. Preparing them carefully can speed up the licensing process.
Penalties for Non-Compliance
Under Section 36, non-compliance with packaging declarations or operating without a license can lead to fines and legal action. A first offence attracts a fine of up to ₹25,000, while repeat offences can bring fines up to ₹50,000 or even imprisonment. Inspectors can seize non-compliant products, stop manufacturing operations, or impose additional penalties under the Packaged Commodities Rules. Staying compliant is critical not just for avoiding legal trouble but also for maintaining customer trust.
Benefits of Having a Legal Metrology License
Having the license gives your business a legal shield. It ensures you can manufacture and sell packaged goods without interruption, enhances your brand credibility, and helps you avoid fines or product seizures. Compliant packaging boosts consumer trust, reduces complaints, and improves your chances of entering new markets, including export. Many large retailers or distributors require suppliers to have proper Legal Metrology licenses as part of their vendor onboarding.
Frequently Asked Questions (FAQs)
- Is the license required if I only manufacture bulk goods, not packaged ones?
No, the Legal Metrology Packaged Commodities License applies only if you manufacture, pack, or import goods sold in packaged form for retail sale. Bulk manufacturers supplying to industries may not need this license but should ensure weights and measures compliance.
- Can one license cover all Indian states?
No. Legal Metrology licenses are issued by state controllers. If you manufacture or sell packaged goods in multiple states, you need to apply separately in each state.
- What happens if I forget to renew my license?
Operating with an expired license is equivalent to operating without a license under the law. You can face fines and even seizure of your goods. Always track renewal dates and apply on time.
- How long does it take to get a license?
Typically, it takes 15–30 days after submission, depending on the state department’s workload and inspection timelines. You can expedite the process by ensuring your documentation is complete and accurate.
- Is the license transferable if I sell my business?
No. If you sell or transfer your manufacturing business, the new owner must apply for a fresh license in their name. Licenses are not automatically transferable.
- Is Legal Metrology registration mandatory for e-commerce sellers?
Yes. If you sell packaged goods online, you must comply with the Legal Metrology (Packaged Commodities) Rules, 2011. E-commerce platforms often require sellers to display all mandatory declarations (like MRP, net quantity, and manufacturer details) on product listings, in line with legal metrology requirements.
- What is the validity period of a Legal Metrology license?
Typically, a Legal Metrology license is valid for five years from the date of issue. However, this can vary slightly depending on the state. License holders must apply for renewal before the expiry date to ensure continuous compliance and avoid penalties.
- Do exporters need Legal Metrology registration?
No. If the packaged goods are solely for export and not sold in the domestic Indian market, Legal Metrology licensing is not required. However, exporters must comply with the destination country’s packaging and labeling standards.
- What is the role of the Legal Metrology Inspector?
Legal Metrology Inspectors conduct periodic inspections to ensure manufacturers and packers are following the law. They check packaging declarations, weighing equipment, and license validity. If violations are found, they can issue notices, impose fines, or seize non-compliant products.
- What are common mistakes manufacturers make under Legal Metrology?
Common mistakes include missing or incorrect declarations (like wrong MRP or missing manufacture date), using unapproved packaging, not updating licenses after business changes, and failing to renew on time. Regular audits and expert consultation can help avoid these pitfalls.
Final Thought
In today’s competitive and highly regulated market, obtaining a Legal Metrology License is not just a legal formality — it’s a vital step to ensure your packaged goods are trusted, compliant, and market-ready. By adhering to the Legal Metrology Act, 2009 and the Packaged Commodities Rules, 2011, manufacturers show their commitment to fair trade, consumer rights, and ethical business practices. Remember, compliance today saves you from heavy penalties and legal headaches tomorrow. If you’re unsure where to begin, seeking expert assistance can make the process smoother, helping your business stay ahead confidently.
CA Manish Mishra