National Trade Certificate: What is a Trade Certificate & How to Apply for it?

A trade certificate is issued by the RTO which enables a dealer to get an exemption from registering the motor vehicle. However, a vehicle owned by him/her cannot be sold to any other buyer without the vehicle’s temporary or permanent registration. A trade certificate is issued to a person by the RTO for a time period of 1 year. Learn more on how to get a trade certificate. the documentation process and the government regulation on it.

How to Get a Trade Certificate?

Trade certificates can be obtained by submitting an application to the respective RTO. Regional Transport Offices are present in every state of India and you can visit your local RTO to get a trade certificate. Here the complete guide on the procedure to apply for a trade certificate:

  • A person needs to apply for a trade certificate by submitting the application to RTO in form 17
  • The application fee for issuance of the trade certificate has to be submitted by the applicant to the RTO
  • The fee is specified as per Rule 81 of the Central Motor Vehicles Act 1989
  • You need to submit a separate application for the below-mentioned classes of vehicles:
    a. Motorcycle
    b. Invalid carriage
    c. Light motor vehicle
    d. Medium passenger motor vehicle
    e. Medium goods vehicle
    f. Heavy passenger motor vehicle
    g. Heavy goods vehicle
    h. Any other motor vehicle of a specified description

Documents Required for National Trade Certificate

The documentation process to obtain a trade certificate from the registering authority is pretty much simple. The key document that you need to submit at the RTO as a part of the documentation process is Form 17. Besides this, dealership letters from the manufacturer, map and images of the workplace, PAN number, GST number of business or firm, valid address proof, etc need to be submitted.

Government Regulations on the Use of Trade Certificate

Government has specified certain regulations regarding the use of the trade certificate. For instance, a trade certificate can be used only by the person to whom the certificate is issued by the RTO. Any other person is not allowed to make use of trade certificate, however, there are certain circumstances under which any other person can use the trade certificate such as:

  • An individual driving a vehicle and working under the authority of the trade certificate holder, however, this needs to be verified using a bonafide document
  • An individual driving the motor vehicle and doing so on behalf of the folder of a trade certificate
  • An individual driving the motor vehicle and doing so as a prospective buyer willing to buy the vehicle from the individual who holds the trade certificate

Use Cases of Vehicle with Trade Certificates

Here are the different cases for which vehicles with trade certificate can be used:

  • If the trade certificate holder or any other person driving the vehicle on behalf of him/her is doing so for the purpose of the test
  • If the trade certificate holder or any other person driving the vehicle on behalf of him/her is doing so for the purpose of construction or repair
  • If the trade certificate holder or any other person driving the vehicle on behalf of him/her is doing so for the purpose of selling it to a prospective purchaser
  • If the trade certificate holder or any other person driving the vehicle on behalf of him/her is doing so for making the delivery to the purchaser
  • If the trade certificate holder or any other person driving the vehicle on behalf of him/her is doing so for taking the vehicle to the workshop for fitting a part it or its repair
  • If the trade certificate holder or any other person driving the vehicle on behalf of him/her is driving from the airport or the railway station after its delivery to the location
  • If the trader certificate holder or any other person driving the vehicle on behalf of him/her is driving it to or from an exhibition of a vehicle from where it is to be propositioned for a sale
  • If the trader certificate holder or any other person driving the vehicle on behalf of him/her is doing so for the purpose of returning it to the financier because of any fault from financier’s end
 
Frequently Asked Questions

Can I apply for a provisional trade certificate?

Yes, you can apply for a provisional trade certificate at your local registration authority. Once you submit the application, the person in charge would visit your workplace to check if you meet the eligibility requirements.

As of now, you can only get a trade licence certificate offline from the respective RTO, however, the government might offer the facility to download a trade license certificate from the Parivahan Sewa website.

A trade certificate enables a dealer to receive an exemption from registering the motor vehicle owned by him or her.

Yes, motor trade insurance covers trade certificate vehicles. It is important to get insurance for your vehicle even if it is used for trade or business purposes.

To get a trade certificate, an application has to be submitted in form 17 along with the appropriate fee and tax as specified in rule 81 of the Central Motor Vehicle Rules 1989.
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