Lube License in Delhi: Process, Fees, and Required Documents

Updated on July 12, 2025 04:46:48 PM

Obtaining a lube license is the first and foremost step in starting a lube business in Delhi. Such a license allows one to sell, store, and distribute lubricants like engine oil, grease, etc., in a proper legal manner. Whether you want to become a small-sized owner or be involved in distribution or partnership with any popular lubricant brand, a valid license is crucial for the business's operation.

This city in itself is a huge boom area, and during the years it has recorded rising numbers of vehicles as well as industries, these, in their turn, bring excellent opportunities for the lube business in itself. Since daily, several people tend to make use of engine oil and its lubricants, therefore, it is a place where demand is hardly ever required.

To acquire a lube license in Delhi, you will need to carry out the appropriate application process along with the following required documents: PAN Card, Aadhaar, Proof of business address, GST certificate, etc. You can apply directly with any lubricant company or through their authorized distributor to get the lube license.

There are a few companies that provide the application process online. The application procedure is really simple and quick. You will get the official dealership or license agreement once the document verification and fee payment are done.

What is Lube License

The term "lube license" in India signifies a government-approved license given to a person or entity for the legal sale, storage, or distribution of engine oil or grease, among other related products. This license is mandatory to open a lubricant dealership, distribute, or even supply in bulk. It becomes vital since it ensures that the business by various government norms and product quality and safety standards.

The license is issued under the Lubricants and Greases (Processing, Supply & Distribution Regulation) Order, 1987, and this is covered under the Ministry of Petroleum and Natural Gas. To acquire this license, the applicant must attach documents like PAN card, Aadhaar, GST registration, and proof of business address. A lube license is not only a means of customer and brand trust but also opens up the opportunity for working with large lubricant companies. It's mandatory for anyone who wants to operate a legal and successful lubricant business in India.

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Benefits of Lube License in Delhi

Getting a lube license in Delhi comes with many benefits for those looking to start or grow a lubricant business.

  • Legal Authorization This enables legality in selling, storing, and distributing lubricants.
  • Trusted Customers As far as broadening trust and credibility from prospective buyers and businesses is concerned.
  • Partner with Top Brands Enables you to work with established lubricant firms.
  • Access to Quality Products Ascertain genuine and high-quality lubricants into your hands.
  • Bulk Order Opportunities Enables participation in tenders and bulk supply orders.
  • Brand Support Branding materials, banners, and promotional assistance are there for you to benefit from.
  • Big Market Demand Huge demand in Delhi as it has vehicles and industries.
  • Go Beyond Business Aligned with business growth for future potential expansions and long-term success.
Benefits of Lube License
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Documents Required for Lube License in Delhi

The documents required for obtaining a lube license in Delhi:

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  • Application Form (Form 1 or Form 1A)
  • PAN Card of the applicant
  • Aadhaar Card or other valid ID proof
  • Business Address Proof (e.g., rent agreement, electricity bill)
  • GST Registration Certificate
  • Trade License from Municipal Corporation
  • Company Registration Certificate (if applicable)
  • Partnership Deed or Memorandum of Association (if applicable)
  • NOC from Local Authorities (if required)
  • Passport Size Photographs
  • Bank Account Details
  • Self-declaration for IS specifications
  • Valid Test Certificate from a recognized lab
  • Project Report with equipment and process details
  • Environmental Clearance Certificate (if applicable)
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Application Process for Lube License in Delhi

If you want to start a lube business in Delhi, you need to get a license or dealership from a trusted lubricant company. Here are the easy steps to follow:

Step 1: Choose the Brand or Company

Choose any lubricating oil brand of your liking (like Castrol, Servo, Gulf, etc.).

Step 2: Contact the Company or Dealer

Visit the company's website or contact a dealer in your area to make inquiries regarding your interest in a dealership or licensing.

Step 3: Fill Out the Application Form

Obtain the dealership/license application form and fill in your details.

Step 4: Attach Required Documents

Submit the form along with other required documents (like PAN, Aadhar, GST, etc.).

Step 5: Submit the Application

Complete and submit the form with documents, in either an online or offline manner, as per the directives from the company.

Step 6: Verification by the Company

Company verification of your documents, business site, and other details.

Step 7: Pay the Fees or Security Deposit

The company might ask for either a small registration fee or a refundable security deposit.

Step 8: Get Approval and the Agreement

Once approved, you shall be given an official dealership/license agreement.

Step 9: Start Your Business

After signing the agreement, you are now officially in a position to trade or distribute lubricants.

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Lube License Required Fees in Delhi

The Cost required for obtaining a lube license in Delhi, including both government charges and typical dealership investments:

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

Get Expert Consultation

Professional fee for Lube License in Delhi starts from ₹9,999

Note: The aforementioned fees are exclusive of GST

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Conclusion

Getting a lube license in Delhi is quite an important step for anyone wanting to open a legal and successful lubricant business. The license gives him the right to sell and distribute lubricants while at the same time getting him into the good books of the customers and brands. This ever-increasing demand in Delhi makes it a great source of income too. By following the laid-down procedure, furnishing all the required documents, and submitting the necessary fees, one can conveniently start as a licensed dealer or distributor. A valid license is the best legal protection for your business and helps it develop long-term prospects and alternate avenues.

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FAQs on Lube License

What is a lube license?

Using a lube license, it is the legal permission for selling and distributing lubricants, including engine oil as well as grease, across Delhi.

Is a license required to sell lubricants in Delhi?

For starting a lubricant business, a license is needed to run the business legally and also to trust some customers.

How to apply for a lube license in Delhi?

You have to approach any lubricant company, fill out a form, and attach the required documents to apply.

Which documents are required for a lube license?

You must submit ID Proof, PAN card, GST Certificate, proof of business address, and photographs to apply.

What is the price for lube licensing in Delhi?

Thus, the government fee is 25 Rs, but if you calculate the total including dealership setup, costs can range from Rs 1-5 lakhs.

Can I register for a lube license online?

A few companies offer online applications, while others can also accept them at their local offices.

What is the time frame for obtaining a license?

The application is usually processed in about 1 to 3 weeks from the time when all documents have been submitted for verification.

Must I have a shop to get the license?

Yes, the premises refer to a business place or shop where lubricants would be stored and sold as per the regulations.

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