How to Become a Motor License Dealer in Alberta

by Martin Muchira

Alberta is located in western Canada. If you want to be a motor dealer in Alberta, you must have a license from the Alberta Motor Vehicle Industry Council. The dealer license allows you to purchase and sell both new and used cars. It also allows you to obtain used motor vehicles in part or whole and sell the vehicle in parts or whole. It also allows you to negotiate on another person's behalf for the sale or purchase of a motor vehicle. You also need a license if you lease, repair or maintain vehicles.

Identify a business structure. Business structures that are acceptable in Alberta include a partnership, sole proprietorship and corporation. You can consult a professional, such as a lawyer or accountant, who can advise you on the best business to meet your needs.

Register the business. Register a business name and your business with the Alberta Corporate Registry. In Alberta, the business name you choose is not required to be unique---unless you are starting a corporation. You will be issued a proof of filing to indicate that proper business registration has been completed.

Research and ensure that you meet eligibility requirements. You need to be over 18 years old to become a motor license dealer, have been in charge of a dealership for at least two years, or have achieved the OMVIC certification license. You also need proof of approval from the municipality where the business will operate.

Apply for license and pay license fees to the AMVIC. The fees depend on the kind of motor dealership you are operating. The fee for a business that deals with repairs is $250 annually; $175 annually for sales; and $350 annually for sales and repairs. The registration fee for a salesperson is $150 per year. (Figures are as of September 2010.) You will need to renew your license every year or get a valid five-year provincial license.

Hire salespeople. Your employees involved in selling cars must be licensed by the AMVIC. Sales staff must attend a one-day seminar developed by the Southern Alberta Institute of Technology to educate salespeople about provincial regulations and help reduce unethical behavior. The seminars are offered in numerous locations across Alberta. You need a designated agent authorization form for each salesperson you hire.

About the Author

Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.

Photo Credits

  • photo_camera car dealership 3 image by Alexey Stiop from Fotolia.com