A vehicle showroom is always filled with brand new cars and motorcycles that are yet to be sold and registered in the name of a customer. However, these vehicles still need to be moved—from the factory to the dealership, between showrooms, or for test drives. Driving an unregistered vehicle on public roads is illegal. So, how do dealers and manufacturers manage this? They use a special, temporary registration known as a Trade Certificate. This brings us to a crucial topic for anyone in the automotive business: what is a Trade Certificate (TC) number for vehicle dealers? A Trade Certificate is a legal authorization that allows a vehicle dealer, manufacturer, or importer to temporarily use an unregistered vehicle on the road for specific business purposes. For 2026, the TC is an indispensable tool for the day-to-day operations of the auto industry.
What is a Trade Certificate (TC) Number? A Simple Definition
A Trade Certificate (TC), often identified by its ‘TC number’, is a special registration number issued by the Regional Transport Office (RTO) to a bona fide dealer or manufacturer of motor vehicles. This certificate allows them to be in temporary possession of new vehicles that are part of their business inventory. The TC number is displayed on a red number plate with white lettering. This distinctive red plate signifies that the vehicle is unregistered and is being used legally for trade purposes. The TC exempts the dealer from the need to register each vehicle in their showroom individually until it is sold to a customer.
The Purpose and Uses of a Trade Certificate
The use of a vehicle under a Trade Certificate is strictly limited to specific, legitimate business activities. It is not meant for personal or regular use. According to the Central Motor Vehicle Rules, a TC can be used for the following purposes:
- For a test drive by a potential customer.
- For moving the vehicle from the factory or port to the dealer’s showroom or stockyard.
- For transporting the vehicle between a dealer’s different showrooms or workshops.
- For taking the vehicle to an RTO for its registration process.
- For exhibiting the vehicle in a public place for promotional purposes.
Using a vehicle with a TC number for any other purpose, such as a daily commute by the dealership staff, is illegal and can lead to penalties.
How to Obtain a Trade Certificate
A Trade Certificate is issued by the RTO in whose jurisdiction the dealer’s business is located. The process involves a formal application and verification of the business’s legitimacy.
| Step | Action |
|---|---|
| 1. Application in Form 16 | The dealer needs to fill out and submit Form 16 to the RTO. |
| 2. Submission of Documents | The application must be accompanied by documents proving the legitimacy of the business, such as the dealership agreement, address proof of the showroom, PAN card, and GST registration certificate. |
| 3. Payment of Fees | The prescribed fee for the Trade Certificate must be paid to the RTO. The fee depends on the class of vehicle. |
| 4. Verification and Issuance | The RTO will verify the application and the business premises. Upon successful verification, the RTO will issue the Trade Certificate (in Form 17) and the assigned TC numbers. |
Validity and Renewal of a Trade Certificate
A Trade Certificate is not a one-time license. It has a limited validity and must be renewed periodically.
- Validity: A Trade Certificate is valid for a period of 12 months from the date of issue.
- Renewal: The dealer must apply for the renewal of the certificate before its expiry. The renewal application is made in Form 18, and the process is similar to obtaining a new certificate.
The entire process of application and renewal is now being digitized through the Vahan Parivahan portal, making it more efficient for dealers. This is part of the larger digitization of transport services, which also includes systems for High Security Registration Plates (HSRP) and online Fitness Certificates.
Frequently Asked Questions (FAQs)
1. Can I buy a car with a TC number and drive it home?
No, a customer cannot legally take delivery of a vehicle with just a TC number. The TC is for the dealer’s use only. Before delivering the vehicle to you, the dealer must complete the registration process and affix at least a temporary registration mark. Driving an unregistered vehicle is a punishable offense for the owner.
2. What is the difference between a TC number and a temporary registration number?
A TC number is for an unregistered vehicle used by a dealer for business purposes (red plate). A temporary registration number is issued by the RTO to a new vehicle after it has been sold to a customer, allowing them to drive it legally for a short period (usually up to one month) until the permanent registration number (HSRP) is issued. Temporary number plates are typically yellow with red lettering.
3. Can a dealer have multiple TC numbers?
Yes, a dealer can apply for and be issued multiple Trade Certificates. The number of certificates they can hold depends on their business volume and requirements. Each certificate will have a unique number.
4. Is insurance required for a vehicle running on a TC number?
Yes, it is mandatory for the dealer to have a valid trade insurance policy that covers all the vehicles they hold under the Trade Certificate. Driving a vehicle without insurance, even with a TC plate, is illegal.
5. What is the format of a TC number plate?
A TC number plate has a red background with the registration mark written in white. The format typically includes the state code, RTO code, the letters ‘TC’, and a unique number (e.g., MH 01 TC 123). This makes it easily distinguishable from a private or commercial vehicle plate.