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) |
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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.
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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