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Warehouse Registration

In the year 2007 the parliament of India enacted the Warehousing (development and Regulation) Act. It came into active effect throughout the county from 25th of October 2010. The Act was incorporated with the objective of providing development along with regularizing the warehouse sector. The WDRA or the Warehouse Development and Regulatory Authority comprised of 1 chairman and 2 full time members for the implementation of the Act.

As per the Act and the guidelines laid any individual interested in the warehousing business or intended in issuing Negotiable Warehouse Receipts or the NWRs have to comply with the legal requirements as prescribed and compulsorily obtain warehouse registration with the WDRA. Warehousing has been seeing to play a very important role in promoting financing and banking. The NWRs issued by registered warehouses help farmers to engage with banks for loans against the NWR which avoids any distress sale of produce. This is turn is also a beneficial entity for financial institutes, commodities exchanges, banks, insurance companies and trade. The Warehouse Manual defines all rules and regulations for accreditation of warehouse, registration of warehouses along with registration of accreditation agencies who work on the registration of warehouses.
REGISTRATION OF A WAAREHOUSE UNDER THE ACT
Any person desiring to maintain a warehouse and issue NWRs need to get a registration under the Warehousing (development and Regulation) Act. He needs to apply to the authorized department and provide the require documents.

DOCUMENTS TO BE ATTACHED WITH THE APPLICATION

The documents the applicant needs to produce are

  1. Layout plan of the warehouse for which the registration is desired
  2. NOC from local authorities for smooth operations
  3. Resolution passed by the Board
  4. Identity proof
  5. MOA and AOA
  6. Certificate of Incorporation
  7. Partnership deeds if applicable
  8. Land deed or lease deed if any
  9. Proof of ownership
  10. Compliance certificate from accreditation agency
  11. Financial credibility statement
  12. Security deposit as prescribed by the authority
  13. Registration fee as prescribed

Once all the documents are up to date and fee and security deposits arrangements done the SOP can be followed for obtaining the registration of a warehouse.
REGISTRATION PROCEDURE

  1. The applicant needs to file an application inform A1. If the same person desires to open more than one warehouse then a separate application for registration shall be required for each warehouse. The applicant needs to file FORM A1 separately for each warehouse registration request.
  1. Attach the prescribed list of documents to the form
  1. Pay the registration fee as mentioned. The fee shall be paid through a Bankers Cheque or a Bank Draft of a nationalised bank only. It shall be paid in favour of “Drawing and Distributing Officer, the Warehousing Development and Regulatory Authority payable at New Delhi”. The fee prescribed by the authorities is divided into 3 categories. The applicant needs to identify his category and pay accordingly.
  1. Rural and Other areas – Re 1.00 per MT
  2. District Headquarters – Rs 1.50 per MT
  3. State Capital Cities – Rs 2.50 per MT

The minimum payable fee for any warehouse registration is Rs 7500. Although there is a concession for a warehouse owner in the fee if he is a farmer producer organization or a cooperative society. The fee for them is Rs 5000 for a warehouse.

  1. Along with the fee a Security Deposit has to be paid as well at registration. This needs to be paid through bankers cheque or a bank draft of a nationalised bank and the categories which have been defined are

 

  1. Rural and Other areas – Re 1.00 per MT
  2. District Headquarters – Rs 1.50 per MT
  3. State Capital Cities – Rs 2.50 per MT

The minimum amount deposited as security deposit for any warehouse at the time of registration is Rs 7500

  1. Once all deposits and fee has been duly filed the authorities might make calls to the applicant inquiring about any information provided by the applicant in the FORM A1 and the documents.
  2. If all eligibilities are met, fee paid and documentation completed the authorities grant the non-transferable registration certificate to the applicant in FORM A3 within 3 months from date of receiving FORM A1
  3. Once the registration certificate has been received the warehouse owner needs to paste it for display in the principal place of business.

Any registration offered by the authority is only issued when it has been confirmed that

  1. The warehouse is well equipped to store the specified goods for which the registration has been requested
  2. The bureau of Indian Standards specifications have been applied properly during the construction of the warehouse
  3. All handling, weighing, sampling, fire fighting, and pest control equipment are available as per the guidelines well in advance
  4. Adequate insurance policies have been filed
  5. The warehouse has enough skilled manpower and staff with scientific storage knowledge for the specified goods to be stored as per the certificate request.

Once all the above compliances are assured the applicant receives the certificate of registration from the authority. The certificate holds validity of 3 years. There are constant inspections without providing any prior notice and if any of the prescribed compliances are not met the registration is suspended at any given time. Although the authority does give an opportunity to the registration holder to be heard before suspension of the certificate.

SUSPENSION OR CANCELATION OF WAREHOUSE REGISTRATION

The issuing authority of the registration certificate for a warehouse also has full rights to suspend, cancel or revoke either temporarily or permanently any registration if

  1. The warehouse owner has failed to comply with any of the provisions in the Act or that stated in the certificate of registration
  2. There has not been a regular audit of the warehouse
  3. Any fraud has been proved in the warehouse and its functioning
  4. If the owner has lost control or has stopped conducting business in the warehouse
  5. The owner has passed the business of the warehouse to any third party
  6. On inspection the authority finds the warehouse incompetent to continue business due to any reason.

The authority in any such condition issues a “show cause notice”. On further investigations by the authority the final decision is taken and worked upon accordingly.

Frequently Asked Questions (FAQ)

What are the requirements for registration of a warehouse?

The requirements to get a warehouse registered are

  1. Proof of land deed and ownership
  2. Poof of partnership if applicable
  3. Proof of Worthiness of the warehouse to store the specified material
  4. Proof of compliance with Bureau of Indian Standards while construction
  5. Proof of skilled manpower with staff having scientific knowledge on storage of specified product
  6. Proof of existence of required equipment, handling, weighing grading apparatus, fire fighting equipment and pest control system
  7. Adequate security arrangements
  8. Proof of adequate insurance policy

 What are the insurance coverage needed for a warehouse registration?

The insurance should cover instances of riots and strikes, misappropriation, burglary, floods, fire and SFSP policy.

How does a person get a warehouse registration in India?

The warehouse registration is a simple step of procedure as prescribed by the authorities.

  1. File FORM A1 from the web portal wdra.gov.in
  2. Attach all documents and pay the security deposit and the fee
  3. Wait for review and inspection
  4. Once all needs are met the authority grants certificate of registration in FORM 3 with a maximum validity of 3 years.

How long does it take to obtain a registration for a warehouse?

The authorities take a maximum time of months to grant the registration certificate for a ware house from the date of submission of application to the authority.

What is the fee prescribed for registration of a warehouse?

The fee structure of registration of a warehouse in India has been prescribed as

  1. Rural and Other areas – Re 1.00 per MT
  2. District Headquarters – Rs 1.50 per MT
  3. State Capital Cities – Rs 2.50 per MT

The minimum payable fee for any warehouse registration is Rs 7500. Although there is a concession in the above prescription of fee if the owner is a farmer producer organisation or a cooperative society. The fee for them is Rs 5000 for a warehouse.

What is the provision if a warehouse owner commences business in a warehouse without registration?

If a warehouse owner does not comply with the mandatory registration policy by the authority then he/she shall face hefty monetary penalties or in more sever default it may end up in imprisonment or both.

If a single owner desires to do business in more than one warehouse then hall a single registration be enough?

It has clearly been stated in the warehouse manual Chapter V by the government that “a person desirous of carrying business of a warehouse in more than one warehouse shall submit a separate application for registration in respect of each warehouse”. The registration certificate issued is warehouse specific and is non- transferable and non- sharable. Neither is the person who is a warehouseman under the Act is allowed to store his/ her own goods in the warehouse registered by the said person.

Registrationseva.com can help in all kind of Registration in a very less time and at affordable price. You can reach to us at info@registrationseva.com or post your query here.

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