Download the Policybazaar app
to manage all your insurance needs.
Explore More Under Vehicle Info
Form 21 – Sales Certificate
Form 21 is the official sales certificate confirming that the dealer has legally sold the vehicle to the buyer. It is issued by the vehicle dealer to the new vehicle buyer. Possessing this document is mandatory for buying vehicle insurance, obtaining a vehicle Registration Certificate (RC), and for other important legal purposes.
What is Form 21?
Form 21 is a sales certificate provided by a licenced vehicle dealer or manufacturer upon the delivery of a new vehicle to the buyer. It verifies that the automobile has been formally sold and transferred to the buyer. The document contains essential information like the vehicle's manufacturer, model, chassis number, engine number, and the buyer's details. This form is a mandatory requirement when applying for the vehicle registration certificate (RC).
Who Issues Form 21?
Form 21 can only be issued by:
Authorised motor vehicle dealers
Vehicle manufacturers
Approved distributors recognised by transport authorities
The seller issuing Form 21 must be officially registered and authorised to sell new vehicles. Private individuals or used-vehicle sellers are not permitted to issue Form 21. This rule ensures that every new vehicle registered in India comes from a verified source and complies with safety, emission, and manufacturing standards laid down by the government.
Who Needs Form 21?
Form 21 is crucial for new vehicle buyers like the ones listed below:
Individuals purchasing a brand-new car or a two-wheeler
Buyers of new commercial vehicles
Business owners purchasing fleet vehicles
Vehicle owners who want to obtain the permanent Registration Certificate (RC)
New vehicle owners must submit their Form 21 to the Regional Transport Office (RTO) to receive their vehicle registration certificate.
What is the Difference between Form 20 and Form 21?
Check out this table to know the difference between Form 20 and Form 21:
| Basis of Comparison | Form 20 | Form 21 |
| Purpose | Application for the registration of a motor vehicle | Sales certificate confirming transfer of ownership |
| Filed By | Vehicle owner | Dealer, distributor, or manufacturer |
| Function | Requests vehicle registration from RTO | Confirms sale and ownership of the vehicle |
| Requirement | Main registration form | Mandatory supporting document for registration |
In short, Form 20 initiates the registration request, while Form 21 validates that the applicant is the rightful owner of the vehicle.
What Details are Included in Form 21?
You can find the following details in Form 21:
Brand name of the vehicle
Vehicle buyer's name, phone number, relation, and address
Vehicle details like make, model, weight, cubic capacity, etc.
Engine number and chassis number
Vehicle class and fuel type
Date of vehicle delivery
Dealer's signature and official stamp
How to Download Form 21?
Just adhere to the steps mentioned below to download the format of Form 21:
Step 1: Open the Parivahan Sewa website.
Step 2: Go to the 'Informational Services' tab and click on 'Downloadable Forms'.
Step 3: Click on the 'Form 21' link to download its format.
How to Fill Form 21?
Here is a quick step-by-step guide to fill Form 21:
Step 1: Start by entering the car's details, such as its make, model, engine number, chassis number, and year of manufacture.
Step 2: Include details about the seller and buyer, such as their names, addresses, phone numbers, and so on.
Step 3: The seller must sign the form to confirm the sale and transfer of vehicle ownership.
Upon verification, the RTO will officially record the transfer of vehicle ownership.
Importance of Form 21
Check out the pointers below to understand the importance of Form 21:
Acts as Legal Proof of Vehicle Sale: Form 21 serves as official evidence that the vehicle has been sold by the dealer or manufacturer to the buyer. It confirms that the transaction has taken place and records the details of the vehicle and the purchaser.
Confirms Ownership for Registration Purposes: This form serves as proof that the buyer is the legal owner of the vehicle during the vehicle's registration process. Transport authorities check this form to verify the ownership details before issuing the Registration Certificate (RC).
Helps RTO Verify Vehicle Authenticity: Form 21 contains important vehicle information such as the chassis number, engine number, and manufacturer details. These details allow the Regional Transport Office (RTO) to confirm that the vehicle is genuine and properly documented.
Supports Issuance of Motor Insurance Policies: Motor insurance companies may require Form 21 to verify vehicle details while issuing a motor insurance policy. The form helps insurers confirm the vehicle's ownership and specifications before providing coverage.
Helps to Prevent Fraud and Unauthorised Vehicle Registration: Form 21 reduces fraudulent vehicle registrations by providing verified sale information to the authorities. As a result, it helps to ensure that only legally sold vehicles are registered.
Without Form 21, the RTO will not issue a temporary or permanent vehicle registration number.
Role of Form 21 in Motor Insurance
Here are a few details that insurers usually verify before issuing a motor insurance policy:
Engine and chassis numbers
Vehicle specifications
Sale authenticity at the time of policy issuance
In case of insurance claim investigations, Form 21 can serve as supporting evidence that the insured vehicle was legally purchased.
Common Reasons for Rejection of Form 21
Here are a few common reasons why RTO may reject Form 21:
The form may be rejected if the mentioned engine number or chassis number is incorrect.
Mistakes in the spelling of the buyer's name or address may result in rejection.
The form may be rejected by the RTO if the dealer's signature or official stamp is absent.
Any inconsistency between the sales invoice information and the details stated in Form 21 may lead to rejection.
If the vehicle model or fuel type listed in the form is inaccurate or does not correspond to the vehicle's specifications, the RTO may reject the form.
Frequently asked question
Yes, saving a copy of your Form 21 is a good idea. It may be useful if you face problems obtaining insurance or when selling your vehicle.
No, you cannot complete your vehicle registration process if you do not have Form 21. This is a crucial document that must be submitted to the RTO to receive your RC.
No, Form 21 is exclusively provided for new vehicles to confirm their legal sale from the vehicle dealer to the customer. When buying a pre-owned vehicle, the process for transferring ownership differs.
Form 21 is issued by the authorised vehicle dealer or manufacturer. Buyers should collect it from the vehicle dealer at the time of vehicle delivery.
If you spot mistakes on your Form 21, you must contact your vehicle dealer immediately to have them corrected. If you ignore this, you may face issues in receiving the registration certificate for your vehicle.
Explore details related to your vehicle
RTO details
Vehicle owner details
RC status
Driving licence
Check Challan Status
Road Tax
Parivahan Sewa
PUC certificate
HSRP
Car insurance companies
Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
Insurers List in India
See more
Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
+Savings are based on the maximum discount on own damage premium as offered by our insurer partners.
^Lowest Price Guaranteed is based on certifications shared by insurers with us. Policybazaar will facilitate price matching subject to the terms and conditions of select insurers.
##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.
