What are the required approvals for a new unit ?

By | March 10, 2019

What are the required approvals for a new unit ?

Whenever anyone wishes to form a new unit, they need to obtain some approvals, permissions from various Government Departments. Now in this article we will see some off the licenses / permissions and the issuing authorities. Please note that, this is not an exhaustive list and the required approvals / licenses / permissions may vary depending on the activity of the unit.

S No

Approval / Licenses

Department to be approached…

1.

Firm Registration- Proprietorship

Local Authorities

2.

Firm Registration – Partnership / Limited Liability Partnership / Company (Private Ltd / Public Ltd )

Ministry of Corporate Affairs

3.

Registration / IEM / Industrial license

DIC for SSI

4.

Allotment of land

State DI / APIIC

5.

Permission to use the residential land for commercial usage / industrial purpose

State DI / Dept. of Town and Country  Planning Local authority / Distt. Collector

6.

Approval of building plan

 Town and country planning / Municipal and local authorities / Chief Inspector of Factories / Pollution Control Board / Electricity Board

7.

Registration under Employees provident fund organisation (EPFO)

EPFO

8.

Registration under Employees State Insurance Corporation (ESIC)

ESIC

9.

Electricity Feasibility / Connection

DISCOM

10.

NREDCAP Registration to setup Solar Power / Wind power Project

NREDCAP

11.

Pollution control board permissions

Pollution Control Board

12.

Factory plan

Labour Employment Training and Factories

13.

Other building plan (other than Gram Panchayat area )

Municipality / DT &CP

14.

Other building plan (Gram Panchayat area )

Panchayat raj Dept.

15

NOC and other permissions from Fire Department

Fire department

16.

Storage of Petroleum, Diesel etc

Dist. Collector

17.

Unique Aadhar Number (Udyog Aadhar)

Ministry of MSME

18.

Labour License / Registration for employing contractual labour/ for interstate migrant labour / for Shops and Establishment / under payment of Gratuity Act / for Motor transport workers

Labour Dept

19.

Permanent Account Number (PAN) / Tax Deductors number (TAN)

IT dept, Ministry of Finance

20.

Registration of factories and establishments under The Employees’ State Insurance Act, 1948.

Employee’s State Insurance Corporation, Ministry of Labour and Employment

21.

Registration and Licensing of Food Business as per the Food Safety And Standards Act, 2006

Food Safety and standards Authority of India, Ministry of Health and Family Welfare

22.

Import- Exporter Code (IEC )

Regional office of Director General of Foreign Trade

23.

Quality Certification

ISI

Regional office of the Bureau of Indian Standards.

24.

Quality Certification

ISO

Certification agencies.

Specific Clearances (Product Wise):

25.

Pesticides

Agriculture Department

26.

Drugs / Pharmaceuticals

State Drug Controller

27.

Fire Works / Safety Matches etc.

License under Explosives Act

28.

Electrical Appliances (house hold)

Bureau of Indian Standards

29.

Milk Processing & Milk products manufacturing units

Approval under Milk and Milk Products Order from State Agricultural/ Food Processing Industries Department

30.

Wood-working / Furniture Industry

District Forest Officer (depends on the distance from forest)

  • For SSI units obtaining permission from Pollution control board is also very simple. The unit has to submit the application and, the acknowledgment will be considered as consent to operate. However, for specific industries, specific clearance is required to be obtained. Some of these industries are: Acids, Aluminum, Cement, Copper and Zinc Smelters, Distillery, Drugs & pharmaceuticals, Dyes, Fertilizers and Pesticides, Iron & Steel, Paper & Pulp, Petrochemicals, Refinery, Sugar, Thermal power etc.

  • As said earlier, please note that the above list of approvals is only illustrative. It may vary depending on the activity and the area where you are operating. Therefore, before establishing / finalising the activity please ensure the required permissions / approvals and proceed.

All the best

Leave a Reply

Your email address will not be published.