The Authorised Dealer Code is a unique alphanumeric code assigned to a manufacturer, wholesaler, or brand to verify and authenticate an approved dealership. Under this code, a business is established to have:
- The legal right to sell the products of the brand.
- Licence to utilise brand contents, marketing materials and technology portals.
- Qualified to provide after-sales and customer services.
- Availability of official supply chain and dealer pricing.
Simply stated, the authorized dealer code is your dealership license. It is usually printed on the service invoices, product delivery slips and online portals to confirm authenticity.
What is the Purpose of Brands to issue Authorized Dealer Codes?
Brands grant Authorized Dealer Code to:
- Uphold the standards of quality and service.
- Secure, traceable, and organised distribution.
- Guard the consumers against the fake products.
- Grant regional or category-specific dealer rights.
- Monitor sales, orders and after-sales services.
In the absence of a managed dealer system, brands are in danger of losing their name and customer confidence. This is the reason why the possession of a proper dealer code is obligatory in the majority of industries.
Industries that Require the Authorized Dealer Code
The Authorized Dealer Codes are actively used in some of the following key industries:
- Car (including bikes, electric vehicles, and commercial vehicles) dealerships.
- Mobile phones and consumer electronics.
- FMCG and beverages
- Home appliances & furniture
- Industrial supplies and equipment.
- Medical equipment and pharmaceuticals.
- Insurance, financial products of banks and micro-finance.
- Telecommunication and broadband services partners.
- EV charging devices and solar products.
In case of online sales, even the marketplaces such as Amazon and Flipkart would demand Authorized Dealer Code documents in order to list some branded goods.
The Advantages of Authorized Dealer Code
Having Authorized Dealer Code will be beneficial to the business in the long run, as it offers benefits such as:
- Formal acceptance and brand equity: Authorized dealers are more reliable to customers than independent or unverified sellers.
- Product access based on dealer prices: You are also able to buy inventory at a discounted dealer price due to the manufacturer.
- Training, technology and marketing assistance: The certified dealers get brand marketing materials, online access software, and business education.
- Warranty and after sales authorization: You will be able to deal with warranty and repairs of products.
- Involvement in plans & boning programs: Brands provide deals such as loyalty rewards, sales bonuses, and exclusive deals to official dealers.
- Reduced legal risks: Unauthorized selling may involve fines and loss of image. A dealer code protects you.
Eligibility Requirements to Obtain Authorized Dealer Code
Most companies consider that, although the brand requirements differ:
- Working experience and industry experience.
- Creditworthiness and investment capacity.
- The suitability of the location and infrastructure of the business.
- Past compliance records and business registration.
- Brand commitment and quality standards.
The better the business profile, the better the opportunity of getting an Authorized Dealer Code.
Application Process to Obtain the Authorized Dealer Code
The following is the typical procedure of getting an Authorized Dealer Code:
Step 1: Obtain Import Export Code (IEC)
Before applying for an AD Code, ensure you have a valid Importer Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT). This is mandatory for all export and import businesses.
Step 2: Choose an Authorized Dealer Bank
Select a bank authorized by the Reserve Bank of India (RBI) under AD Category–I. This should ideally be the bank where your business has a current account for export/import transactions.
Step 3: Prepare Required Documents
Gather the following documents before applying for the AD Code:
- Copy of IEC certificate
- Copy of PAN card
- Copy of GST registration certificate
- Bank account statement or cancelled cheque of your export account
- Business registration documents (such as a company incorporation certificate or a partnership deed)
- Letter of request for AD Code on company letterhead (as per prescribed format)
Step 4: Submit Application to Your Bank
Submit your AD Code request letter along with the supporting documents to your chosen bank branch. The bank will verify the documents and issue an AD Code letter (a 14-digit unique code).
Step 5: Register AD Code with Customs (ICEGATE)
After receiving the AD Code letter from the bank:
- Visit the ICEGATE portal (www.icegate.gov.in).
- Log in or create an exporter account.
- Navigate to “Bank Account → Add New Bank Account”.
- Select Foreign Remittance Account (AD Code).
- Upload the Bank AD Code letter and relevant documents in PDF/JPG format (under 1.5 MB).
- Submit the application for approval.
The Customs Department verifies the AD Code details with the respective bank. Once verified, the AD Code is registered for that specific port.
After approval, exporters can use the registered AD Code for:
- Generating Shipping Bills on ICEGATE
- Receiving export proceeds
- Tracking remittances and customs clearance
How is the Authorized Dealer Code Used?
You will use your Authorized Dealer Code to:
- Enter the company’s portals and order systems.
- Monitor inventory and make stock orders.
- Warranty of process and service requests.
- Sanction dealer in the brand ecosystem.
- Official digital means and access marketing.
- Take part in incentive schemes.
The code is what is going to be your online and working identity within the brand network.
Authorized Dealer Code Validity & Best Practices
In order to prevent suspension or termination of your Authorized Dealer Code, remember the following:
- Attain low sales goals established by the company.
- Keep accepted brand standards and showroom quality.
- Official pricing and avoiding grey-market sales are never used.
- Give after-sales services and uphold warranties.
- No misleading advertisement or illegal discounting.
- Provide necessary reports, audits and performance review.
- Be tax and legal compliant.
Brands keep checking on the performance and compliance of dealers. Separate infractions may result in fines, or your authorisation dealer code may be terminated.
Mistakes to Avoid
Dealers must avoid:
- Selling fakes or unlicensed branded goods.
- Distorting the invoices of customers.
- Appropriation of brand trademarks.
- Working outside set boundaries.
- Distribution of dealer login account information to third parties.
Such errors endanger your dealer code and reputation in business.
Conclusion
An Authorized Dealer Code should not be thought of as a mere number; it is the key to professional recognition within the business community, wholesale pricing, customer trust, and lengthy partnerships with established brands. Take the time to prepare the documents carefully, choose the right brand, and familiarise yourself with all compliance procedures, especially if you are opening a dealership. Your Authorised Dealer Code has the potential to be the foundation for a profitable and reputable dealership if approached correctly.
