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Dangerous Goods License

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50,000+ businesses incorporated since 2011

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John DoeCEO
John Doe
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John DoeCEO
John Doe
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John DoeCEO
John Doe

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Companies Act, 2013 (India)

A dangerous goods (DG) license is a legal requirement for companies that handle, transport, or deal with hazardous materials. The license is issued by a regulatory authority after a company submits forms, documentation, and passes an exam.

A Dangerous Goods License is a legal authorization required for businesses or individuals involved in the handling, transportation, storage, or sale of hazardous materials classified as “dangerous goods.” These goods can pose risks to human health, safety, property, or the environment and include substances like explosives, flammable materials, toxic chemicals, compressed gases, and radioactive materials.

A Dangerous Goods License is a legal permit required by businesses or individuals engaged in the handling, storage, transportation, or distribution of materials classified as hazardous or dangerous goods. These goods include items that pose risks to health, safety, property, or the environment, such as flammable liquids, explosives, toxic chemicals, gases, and radioactive substances.

The license ensures that the handling of such goods complies with safety standards and regulations to minimize risks and ensure public safety.

Ensures Legal Compliance

Holding a Dangerous Goods License ensures that businesses comply with local, national, and international laws governing the storage, handling, and transportation of hazardous materials.

Promotes Safety

The license mandates adherence to strict safety protocols, reducing the risk of accidents, environmental damage, or harm to workers and the public.

Facilitates Smooth Operations

Licensed businesses face fewer operational disruptions during inspections or audits, enabling uninterrupted handling and transportation of dangerous goods.

Enhances Reputation and Credibility

Possessing a Dangerous Goods License demonstrates a company’s commitment to safety and regulatory compliance, building trust with clients, partners, and authorities.

Access to Specialized Markets

Many industries and clients require proof of compliance before working with businesses that handle hazardous materials, making the license essential for entering specific markets.

Insurance and Liability Coverage

A valid license ensures eligibility for insurance coverage, protecting businesses from financial losses in the event of accidents or legal disputes related to hazardous materials.

Eligibility Criteria for Dangerous Goods License

To obtain a Dangerous Goods License, businesses or individuals must meet specific requirements to ensure safe handling, storage, and transportation of hazardous materials. The eligibility criteria typically include

Nature of Business Activity

  • The applicant must be engaged in activities involving storage, transportation, distribution, or handling of hazardous materials, such as chemicals, flammable substances, or explosives.

Facility Compliance

The premises where dangerous goods are handled or stored must comply with safety standards, including:

  • Proper storage facilities.
  • Adequate ventilation.
  • Fire safety systems (e.g., fire extinguishers, alarms, and suppression systems).
Trained Personnel
  • The business must employ staff trained in the safe handling and transportation of dangerous goods, including awareness of safety protocols and emergency response procedures.

 Regulatory Approvals

Approvals from relevant authorities such as:

  • Local fire department for fire safety compliance.
  • Environmental boards to ensure no environmental hazards.
  • Transport department if goods are to be transported.

Documentation and Plans

Submission of specific documents, including:

  • Hazard assessment reports.
  • Safety management plans.
  • Material Safety Data Sheets (MSDS) for all hazardous goods handled.

Adherence to Safety Standards

Compliance with guidelines set by:

  • Local laws and municipal corporations.
  • National safety standards (e.g., Petroleum and Explosives Safety Organization [PESO] regulations in India).
  • International safety codes, if applicable, such as the UN Recommendations on the Transport of Dangerous Goods.

Transportation Readiness (if applicable)

  • Vehicles used for transportation of dangerous goods must meet safety specifications and be certified for this purpose.

Valid Business License

  • The applicant must have a valid license to operate their business and provide proof of entity registration.

 

 

Checklist for Dangerous Goods License

Business Documentation

  • Proof of business registration (e.g., Certificate of Incorporation, Trade License).
  • PAN Card and GST Registration Certificate (if applicable).

Facility Compliance

  • Detailed layout or blueprint of the premises where hazardous materials will be stored or handled.
  • Fire safety compliance certificate from the local fire department.
  • Ventilation, fire suppression systems, and other safety equipment installed.

Employee and Training Records

  • List of trained personnel with certification in handling hazardous materials.
  • Proof of training in emergency response protocols and safety measures.

Safety and Emergency Plans

  • Hazard assessment report for the materials to be handled.
  • Comprehensive Safety Management Plan (SMP).
  • Emergency response plan, including evacuation and containment procedures.

Documentation of Dangerous Goods

  • Material Safety Data Sheets (MSDS) for each hazardous material.
  • Inventory list specifying the type and quantity of dangerous goods.
  • Transport documentation if goods are to be moved, including vehicle compliance certificates.

Approvals and Permits

  • No Objection Certificate (NOC) from the local fire department.
  • Environmental clearance from the appropriate authority.
  • Permit from transport authorities if dangerous goods will be transported.

Insurance

  • Proof of liability insurance covering risks related to the handling of hazardous materials.

Government Application Forms

  • Completed and signed application form for the Dangerous Goods License.
  • Application fees as prescribed by the issuing authority.

Compliance with Regulations

  • Adherence to local, national, and international laws governing hazardous materials.
  • Compliance with specific industry standards, such as PESO guidelines (India) or ADR regulations (Europe).

Necessary Documents for Dangerous Goods License

To apply for a Dangerous Goods License, the following documents are typically required:

Business Registration Documents

  • Proof of business registration (e.g., Certificate of Incorporation, Trade License).
  • Partnership Deed or Memorandum of Association (MOA) and Articles of Association (AOA) for companies.
  • GST Registration Certificate (if applicable).

Identity and Address Proof

  • PAN Card of the business or proprietor.
  • Aadhar Card, Voter ID, or Passport of the owner/proprietor.
  • Address proof of the business premises (e.g., utility bills, rent agreement, or ownership documents).

Premises-Related Documents

  • Detailed site plan or blueprint of the storage or handling facility.
  • Fire safety compliance certificate issued by the local fire department.
  • NOC (No Objection Certificate) from municipal or local authorities.

Safety Compliance Documents

  • Material Safety Data Sheets (MSDS) for all hazardous materials stored or transported.
  • Hazard assessment report and risk mitigation plan.
  • Safety Management Plan (SMP), including details of fire safety systems and emergency procedures.

Employee-Related Documents

  • List of employees trained in handling dangerous goods.
  • Certificates proving the completion of safety and hazardous material handling training.

Transportation Documents (if applicable)

  • Vehicle registration documents for vehicles used to transport hazardous goods.
  • Compliance certificate for vehicles transporting dangerous goods.

Environmental Clearance

  • Approval from the environmental board or pollution control board, ensuring safe disposal and non-contamination.

Insurance Certificate

  • Proof of liability insurance covering damages or risks related to dangerous goods.

Government Forms and Application

  • Duly filled and signed application form for the Dangerous Goods License.
  • Receipt of application fee payment.

Documents necessary for filing SPICe+ form (INC-32) for the registration of a private limited company are outlined as follows:

A. For Indian Nationals serving as directors and subscribers:
  • Affidavit on stamp paper: a declaration by all subscribers affirming their intention to become shareholders of the company
  • Office address proof like the Rental Agreement or Ownership Deed
  • Electricity bill, water bill and other utility bills of the last two months
  • Copy of approval if required
  • Trademark registration details
  • NOC from property owner
  • Proof of identity and address
B. Required Documents For Foreign Nationals serving as directors/Shareholders
  • Passport: Proof of identity
  • Address proof: Accepted documents include a driving license, residence card, bank statement, or government-issued identification with a valid address.

Types of Dangerous Goods License

Storage License

These are the most common types of private limited companies.In this type the company has a share capital. And the liability of the shareholders are capped based on the quantity of unpaid shares.

Transportation License

Required for companies or individuals involved in transporting dangerous goods via road, rail, sea, or air.

Handling and Distribution License

Necessary for businesses that handle or distribute dangerous goods during operations such as loading, unloading, or transferring.

Characteristics of a Dangerous Goods License

  • Regulatory Compliance : Ensures businesses adhere to local, national, and international laws for handling, storing, and transporting hazardous materials.
  • Safety-Focused: Mandates safety protocols, such as fire prevention, risk assessments, and employee training, to minimize accidents and ensure safe operations.

  • Site-Specific Requirements: Tailored to the nature of the facility or business, whether it involves storage, transportation, or distribution of dangerous goods.

  • Periodic Inspections: Requires regular inspections to verify ongoing compliance with safety standards, risk management, and equipment maintenance.
  • Environmental Protection: Includes measures to prevent environmental damage from hazardous materials, ensuring safe disposal and containment.
  • Employee Training: Ensures employees are trained in handling dangerous goods safely and responding to emergencies effectively.
  • Transport and Logistics Compliance: Specifies safety measures for the transportation of dangerous goods, including vehicle certifications and driver training.
  • Insurance and Liability Coverage: Often requires proof of insurance to cover potential risks associated with handling dangerous materials. 

How to Register for a Dangerous Goods License

step

Understand the Requirements

  • Determine the Type of License: Identify whether you need a Storage, Transportation, or Handling & Distribution license based on your business activities.
  • Compliance with Safety Standards: Ensure your business premises, equipment, and personnel meet the safety requirements outlined by regulatory authorities.

Gather Necessary Documents

  • Business Registration (Certificate of Incorporation, GST Registration, etc.).
  • Proof of Premises (address proof, site plan, fire safety certificates).
  • Safety Documents (Material Safety Data Sheets, risk assessments, safety management plans).
  • Employee Training Certificates (for staff handling dangerous goods).
  • Transportation Documents (if applicable, vehicle certification for transporting dangerous goods).

Submit Application

  • Application Form: Complete the official application form provided by the regulatory authority (local government, fire department, etc.).
  • Application Fee: Pay the required fee as per the type of license and business activity.
  • Documentation: Submit all supporting documents along with the application form.

Inspection by Authorities

  • Site Inspection: Local authorities (e.g., fire department, environmental board) may conduct an inspection of your premises to ensure compliance with safety standards.
  • Vehicle Inspection: For transportation licenses, vehicles used for hazardous material transport will also be inspected for compliance.

Approval and Issuance of License

  • After successful submission and inspection, the regulatory authority will issue the Dangerous Goods License.
  • After successful submission and inspection, the regulatory authority will issue the Dangerous Goods License.

Regular Compliance and Renewal

  • Ensure continuous compliance with safety standards.
  • Periodic Renewals: Submit for renewal as required, including updates on safety measures and employee training.

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