Updated on July 02, 2025 02:37:01 PM
A Lube License in India is an official license required for entities dealing in the manufacturing, packaging, and selling of lubricants, such as engine oils, greases, and other automotive or industrial oils. These licenses are issued through the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry.
A lube license ensures that the products are safe and conform to the quality standards as prescribed by the nation before they enter the market. For manufacturers, importers, or re-packers of lubricants, it is mandatory to obtain a valid lube license for their lawful operation in the Indian market. It adds to customer confidence and saves the brand from any potential legal trouble.
The process normally involves an application along with supporting documents such as specifications of the product, testing reports, and proof of the manufacturing premises. The demand in the automotive and industrial sectors for better quality lubricants has led to the realization of the need for compliance and quality by businesses.
This lube license will not only open much broader avenues for the market but will also contribute toward building a very credible brand image. New and old companies must know that obtaining this license is the first step towards a successful and lawful industry for lubricants in India. Before applying for a lube license, it is important to ensure that your product is certified and under mandatory BIS (Bureau of Indian Standards) norms.
A Lube License is a government certification that allows companies in India to manufacture, blend, re-pack, or market lubricating oils such as engine oils, gear oils, and greases. A regulatory formality, it ensures that the lubricants sold or distributed are up to standard regarding quality and safety. Lube licenses are generally given by the Department for Promotion of Industry and Internal Trade (DPIIT), and thereby, compliance with BIS (Bureau of Indian Standards) norms ensures provision for a lube license.
It preserves the integrity of its product and prevents obsolete or fake lubricants from permeating the market. Submitting digital versions of technical specifications, lab test reports, and infrastructure details of the production or repackaging unit forms the application of lube licenses.
The benefits of a lube license (also known as a lubricant dealership or distribution license), especially if you're planning to operate a business in automotive, industrial, or commercial lubricant supply:
To apply for a lube license in India, you’ll need to submit the following documents:
If you want to start a lube business in India, you need to get a license or dealership from a trusted lubricant company. Here are the easy steps to follow:
Choose any lubricating oil brand of your liking (like Castrol, Servo, Gulf, etc.).
Visit the company's website or contact a dealer in your area to make inquiries regarding your interest in a dealership or licensing.
Obtain the dealership/license application form and fill in your details.
Submit the form along with other required documents (like PAN, Aadhar, GST, etc.).
Complete and submit the form with documents, in either an online or offline manner, as per the directives from the company.
Company verification of your documents, business site, and other details.
The company might ask for either a small registration fee or a refundable security deposit.
Once approved, you shall be given an official dealership/license agreement.
After signing the agreement, you are now officially in a position to trade or distribute lubricants.
The fees required for a lube license in India. Please note that the fees can vary depending on the brand, location, and type of dealership.
| Fee Type | Government Fee ₹ | Professional Fee ₹ |
|---|---|---|
| Government License Application Fee | 25 (as per official regulations) | 9,999 |
| Dealership Security Deposit | 1,00,000 to 1,50,000 (varies by brand) | |
| Initial Inventory Purchase | 3,00,000 to 4,00,000 (approximate) | |
| Shop Setup & Branding | 25,000 (includes interiors and signage) | |
| Equipment & Furniture | 20,000 (for basic setup) | |
| Advance Rent for Shop | Depends on location | |
| Working Capital | Varies based on business scale |
Professional fee for Lube License in India starts from ₹9,999
Note: The aforementioned fees are exclusive of GST
Conclusion
Starting a lubricant business in India can be a blessing, provided it is undertaken with proper planning, proper approvals, and workflow. Obtaining a lube license assures you that your business is legal and in demand by customers. There are various initial costs like fees for licenses, security deposits, and stock purchases, which are an investment and a necessity for ensuring smooth running and operations. Select a good brand, fulfill the necessary formalities, and work according to the process to brace yourself for establishing your lube dealership.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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The lube license is a license that allows one to sell and distribute lubricants like engine oil, grease, etc., in India.
Yes. Anyone who wants to deal in lubricants commercially must have a valid lube license per the Indian government rules.
You can apply by contacting a lubricant brand or distributor and forwarding the required documents with the completed application form.
Basic documents are needed, like the PAN card, Aadhaar card, GST certificate, business address proof, and photographs.
The nominal government fee is around ₹25, but setting up a dealership can cost ₹1 lakh to ₹5 lakh, depending on the brand and setup.
Some companies do accept online applications, while others may require application submission in an offline format. Get in touch with the brand to know which is applicable.
It usually takes about 1-3 weeks from the date of application and submission of requisite documents, depending on the company's verification.
Yes, one should have a shop or place of business to store and sell the lubricants as part of the requirements.
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