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Home - Licence For Factory Setup In India

Licence For Factory Setup In India

The factory setup in India for a foreign venture require a lot of formalities to fulfill. We are here to provide various services that helps them to easily set their venture on Indian land.

SSI / MSME / DIC Registration

Every business registered in India is provided certain benefits by the government of India based on its classification in the type of entity it is i.e Small, Medium or Micro. When you register a Micro, Small and Medium Enterprise, you will get an MSME certificate (provisional or permanent).

This MSME certificate helps you enjoy various benefits like priority sector lending (you get loans easily), differential rates of interest (you pay lesser interest on loans), various exemption under tax laws, get environmental clearances, etc.

When you are about to start your Micro, Small and Medium Enterprise, you should apply for a Provisional Registration.

Once you are given the Provisional MSME Certificate and you start production you can apply for a Permanent Certificate, which opens up more benefits for you.

It may not be compulsory to register your Micro, Small and Medium Enterprise, but it is definitely what you’d want to do. It will provide you may government benefits and schemes eligibility.


Provisional Registration

Provisional registration is granted to a unit at its pre- investment period to enable it to take necessary steps to apply for financial credit, land or an industrial set, water, power or telephone connections, etc.

Permanent / Final Registration

A provisionally registered industrial unit when it is about to go into production is to apply for grant of Permanent / Final Registration. An existing and functioning industrial unit is eligible to apply for Permanent / Final Registration without going into provisional registration processes.

The following slabs have been prescribed under the MSMED Act to determine the status of the Enterprise:

No. Type of Enterprise Manufacturing Industry (Investment in Plant and Machinery) Service Industry (Investment in Equipments)
1 Micro Does not exceed Rs. 25 Lakh Does not exceed Rs. 10 Lakh
2 Small Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore Exceeds Rs. 10 Lakh but does not exceed Rs. 2 Crore
3 Medium Exceeds Rs. 5 Crore but does not exceed Rs. 10 Crore Exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore


MPCB Consent

Setting up a manufacturing unit in India attracts many types of licenses from Indian Government i.e both State and Central, One of such license is for the Pollution Licenses.

Any industry, which discharge sewage or effluent into the environment or emit any pollution in air will have to obtain consent of the State Pollution Control Board.

Similarly any industry / process generating, storing, transporting, disposing or handling hazardous waste are required to obtain authorization from MPC Board.

There are two types of consent

Consent to Establish

All the industries and activities needing consent must obtain consent to establish before actual commencement of the works for establishing the industry/activity.

Consent to Operate

This consent needs to be taken before actual commencement of production including trial production. This consent is valid for certain duration.

Documents required to get the consent to establish
  • Site plan/index
  • Topographical Map
  • Detailed layout plant of different processes and point sources of effluent discharge/emissions and position of stack and documents including D.G. set capacity in KVA.
  • Details of Water Pollution Control/Air Pollution Control devices proposed to be provided.
  • Ambient Air Quality Report (if available)
  • SSI Certificate/NOC from Directorate of Industries Government of Maharashtra.
  • D.G.T.D. Registration. ( if applicable )
  • Details of chemical reactions with mass balance.
  • Consent fees in the form of D.D. drawn on favour of MPCB.
  • Local body NOC.
  • Under taking on Rs. 20 stamp paper or Chartered Accountant certificate about proposed Capital Investment ( Land, building, and machineries.

Documents required for consent to operate/renewal
  • Detailed layout plant of different processes and point sources of effluent discharge/emissions and position of stack and documents including D.G. set capacity in KVA.
  • Process flow sheet.
  • Latest analysis report of effluent, fuel gases, solid waste & hazardous wastes.
  • Details of Water Pollution Control/Air Pollution Control devices provided.
  • Ambient Air Quality Report (if available)
  • SSI Certificate/NOC from Directorate of Industries Government of Maharashtra.
  • D.G.T.D. Registration. (if applicable )
  • Details of chemical reactions with mass balance.
  • Consent fees in the form of D.D. drawn on favour of MPCB.
  • Xerox copy of previous consent (for renewal only).
  • Xerox copy of Environmental Clearance of Government of Maharashtra or Government of India in case of 1st consent to operate in case of industries/process requiring environmental clearance.


Factory Licence

The factory owners are required to notify and also register their premises with the local governing authority before the beginning of operations. This helps in facilitating the risk management at workplace and the total implementation of Safety and Health Management Systems in factory premises.

Documents required :
  • Application Form For the Consent.
  • DD For the statuary Fees Amounted.
  • Lease Agreement copy with owner Or 7/12 Copy.
  • Grampanchayat NOC copy in name of Company.
  • Final drawing copy of factory and layout copy.
  • Declaration for the investment and Project profile by Chartered accountant.
  • Water Budget means input water, uses, applications, losses, recycled, Effluent.
  • Manufacturing process of each product with flow diagram.
  • SSI Registration copy Or IEM Registration. Copy.
  • Process flow diagram.
  • M.O.A. Copy.
  • List of Raw Material With monthly or annual consumption.
  • List of manufacturing Products with monthly or annul consumption.
  • Details of the Generators or boilers.
  • Details of the Stack and the chimney.
  • Details of hazardous and non hazardous waste, treatment and disposal.
  • ETP/STP scheme, process and diagram.


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