With the rapid development of deep learning techniques, new innovative license plate recognition systems have gained considerable attention from researchers all over the world. These systems have numerous applications, such as law enforcement, parking lot management, toll terminals, traffic regulation, etc. At present, most of these systems rely heavily on high-end computing resources. This paper proposes a novel memory and time-efficient automatic license plate recognition (ALPR) system developed using YOLOv5. This approach is ideal for IoT devices that usually have less memory and processing power. Our approach incorporates two stages, i.e., using a custom transfer learned model for license plate detection and an LSTM-based OCR engine for recognition. The dataset that we used for this research was our dataset consisting of images from the Google open images dataset and the Indian License plate dataset. Along with training YOLOv5 models, we also trained YOLOv4 models on the same dataset to illustrate the size and performance-wise comparison. Our proposed ALPR system results in a 14 megabytes model with a mean average precision of 87.2% and 4.8 ms testing time on still images using Nvidia T4 GPU. The complete system with detection and recognition on the other hand takes about 85 milliseconds.