//Licensing and Clearance to start small business in india
Licensing and Clearance to start small business in india

Licensing and Clearance to start small business in india

Licensing and Clearance to start small business in india : 

Licensing :

Licensing in the Industries sector is governed by the licensing exemption notification issued by Govt. of India on July 25, 1991, under the Industries (Development and Regulation) Act, 1951. In SSI, there are virtually no licensing restrictions. No industrial license is required except in the case of 6 product groups included in compulsory licensing (these products groups mainly cover products that can only be made in the large sector). Licensing and Clearance to start small business in India contains many facts like this.

But if a small-scale unit employs less than 50/100 workers with/without power then it would not require a license from the Govt. of India even for the 6 product groups covered in licensing under Schedule II of the notification. Subject to this, an entrepreneur can set up an S.S.I unit anywhere in the country without any restriction. The units are, of course, subject to the location /land use and zoning restrictions in force under the local laws.

Licensing and Clearance to start small business in india :

Clearance for small business manufacturing :

In initiating a small business manufacturing in India, according to the product entrepreneurs need to obtain several different clearance from different Government Authorities.

Regulatory or Taxation Clearances :

1. Registration under Sales Tax Act – Commercial Tax officer of area concerned

2. Registration under Central Excise Act – Collector of Central Excise or his nominee for area

3. Payment of Income Tax – ITO of the area concerned

4. Registration of Partnership deed – Inspector General of area concerned

5. Calibration of weights & measures – Weights and Measures Inspector of State

6. Power Connection – Designated Officer of State Electricity Board

7. Employee strength exceeding 10 with power connection or 20 without power.

Licensing and Clearance to start small business in india :

Chief Inspector of Factories Environment & Pollution Related Clearances :

Licensing and Clearance to start small business in india
Licensing and Clearance to start small business in india

The method of granting consent under water and air pollution to S.S.I units has been simplified. Except for 17 critically polluting sectors given below, in all other cases S.S.I units will merely have to file an application and obtain an acknowledgement which will serve the purpose of consent :

1. Fertilizer (Nitrogen/Phosphate)

2. Sugar

3. Cement

4. Fermentation & Distillery

5. Aluminium

6. Petrochemicals

7. Thermal Power

8. Oil refinery

9. Sulphuric Acid

10. Tanneries

11. Copper smelter

12. Zinc smelter

13. Iron & Steel

14. Pulp & Paper

15. Dye and Dye intermediates

16. Pesticides manufacturing and formulation

17. Basic Drugs and Pharmaceuticals.

Product Specific Clearances :

1. Establishing a Printing Press – District Magistrate

2. License for Cold Storage Construction – Designated Official in State

3. Pesticides – Central/State Agricultural Department – Ministry of Agriculture

4. Drugs and Pharmaceuticals – Drug license from State Drug Controller

5. Safety Matches/ Fireworks – License under Explosives Act from Directorate of Explosives, Nagpur

6. Household Electrical Appliances – License from Bureau of Indian Standards

7. Wood Working Industry within 8 km from forest – District Forest Officer

8. Milk Processing & Milk products manufacturing units – Approval under Milk and Milk Products Order from State Agricultural/ Food Processing Industries Department above a designated capacity.