Complete Guide on petrol pump registration in India

Get To Know About The Documents Required For A Petrol Pump License

Online Legal India LogoBy Online Legal India Published On 16 Sep 2022 Updated On 19 Sep 2022 Category Company Registration

Did you know that you must first register your private limited business and meet the requirements for a licence in order to own a filing station in India? The eligibility conditions for a petrol pump licence will be covered in this blog post. So continue reading if you're interested!

Check eligibility for License to Open a Fuel Station Major Criteria:

The Ministry of Petroleum and Natural Gas has made the licensing procedure for petrol stations simpler.

The requirements must be met in order to be eligible to open a petrol station in India:
 

  • The applicant must or ought to be an Indian national.
  • Age requirement The applicant must be at least 21 years old.
  • The applicant must have at least finished the 10th grade to qualify academically.
  • The candidate shouldn't have any prior convictions.
  • The candidate ought to have a spotless financial background.
  • The applicant should have the land and facilities required to build a petrol station.
  • The candidate must be financially capable of making an investment in a company.
  • The applicant must be registered as a petrol pump dealer with the relevant Indian oil marketing companies.

If the applicant satisfies the aforementioned qualifying requirements, they may submit an application through the Ministry of Petroleum and Natural Gas for a petrol pump license in India. The ministry and its agencies would exercise full diligence before granting the permit.
 

How to Apply for a Petrol Pump License?
 

After confirming your eligibility, you can submit an application for a petrol pump license to the Ministry of Petroleum and Natural Gas. The ministry and its agencies will conduct their due diligence before granting the licence. On their official websites, a number of government oil organizations, including IOC, Hindustan Petroleum, Bharat Petroleum, and commercial oil marketing businesses like ESSAR, Nayara, and other oil corporations, provide an application form for Retail Outlet Franchisee.

You must submit the following paperwork in order to apply for a licence to operate a fuel station:
 

  • A properly completed and signed application
  • A passport photocopy
  • Your birth certificate in duplicate
  • The minimum requirement is a duplicate of your 10th-grade diploma
  • Immaculate financial history
  • A statement of innocence
  • Evidence of land ownership or a lease
  • Evidence of financial resources
  • Registration with the relevant state authorities as a petrol station dealer

You must wait until the ministry has completed a background check and confirmed all the information you have provided after completing all the necessary paperwork. You will receive a license to run a fuel station in India once the verification is finished.
 

Applicants can apply online by using the steps:
 

  • Visit the Ministry of Petroleum & Natural Gas's official website to apply for petrol pump license.
  • Choose the 'Apply for New License' option by clicking the 'Citizen's Corner' tab.
  • You will be directed to a new page where you must provide your personal information, including your name, address, and phone number.
  • All required documentation must be uploaded.
     

You must submit your application and wait while the ministry runs a background check after uploading all necessary documents.
 

How much money must be invested in order to obtain a licence for an Indian petrol station?
 

Depending on the type of fuel station you want, different investments are needed in India to obtain licences for petrol filing stations. The investment needed for self-service fuel pumps ranges from Rs. 2 lakh to Rs. 5 lakh. The investment needed for a full-service pump ranges from Rs. 10 lakh to Rs. 20 lakh.
 

Savings accounts, bank deposits, registered company deposits, postal savings plans, de-mat bonds or shares of publicly traded firms, mutual funds, National Savings Certificates, etc. are all examples of investments.
 

Land requirement for petrol pump dealership:
 

In India, a fuel station needs a minimum of 900 square meters of land. The applicant must either own the land outright or have leased it from the landowner for at least three years.
 

Requirements for Petrol Pump License
 

Meeting the eligibility requirements is the fundamental prerequisite for turning on a petrol pump. Anyone seeking a licence to operate a gas station must be an Indian national, at least 21 years old, and not more than 55. Additionally, anyone seeking a document attesting to their residency in India must have spent at least 182 days there during the previous fiscal year.

A person's age must be verified either by submitting their birth certificate, passport, secondary school graduation certificate, 10th-grade board examination certificate, or an affidavit attesting to the stated age with their election card issued by the Election Commission of India.

Additionally, all applicants for a licence to open a petrol station in India must possess a minimum level of education. The following education requirements apply depending on the location, either urban or rural:

Rural Areas: 

Any applicant who falls under the SC/ST or OBC categories must have passed the 10th-grade board test. The minimum qualification for applicants in any other category is passing the 10+2 level of examination.
 

Urban Areas: 

The minimal educational requirement for SC/ST or OBC applicants is passing the 12th-grade board exam. For applicants in the open category, a diploma from any university recognised by the Indian Central or State Legislature must be shown.

Availing a Petrol Pump Licence:

After creating an account on the Petrol Pump Dealer Chayan website, you can proceed to apply for the licence necessary to operate a petrol filing station in India. It is easy to apply for a licence, and you should get it in two days or less.

You can start the licencing process by going to Oil Marketing Companies (OMCs') official websites or by looking for their media adverts. OMCs advertise the locations where they wish to open a petrol filing station as part of their expansion process. Your application would need to be completed by:
 

  • In metropolitan regions, purchase an application form for Rs.1,000; in rural areas, pay Rs100.
  • On the official website of the selected oil marketing company, complete the form and upload it.
  • Once the licence has been obtained, you must submit a GST application in the name of your business. Once the firm has started, you must also create a current account in the same name and promptly pay GST.
     

Permissions and Certificates Required for starting a Petrol Pump Business:
 

An applicant who wants to open a petrol station must obtain particular licences and certificates in order to operate their business successfully. Here are a few illustrations:

  • Certificate of No Objection (NOC) from the Licensing Authority.
  • Permission from the Municipal Corporation Department.
  • Certification from the Fire Safety Office and a NOC from relevant authorities.
     

Conclusion:
 

We have now seen what is needed to be eligible for an Indian licence to operate a petrol pump. We have also looked into applying for a permit and the relevant documentation. We have now seen the required minimum investment for an Indian petrol pump licence.


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