How to Set-Up an Enterprise

Permissions/Clearances Required

Obtaining Clearances

An entrepreneur has to obtain several clearances or permission depending upon the nature of his unit and products manufactured.

Regulatory Or Taxation Clearances

• Registration under Sales Tax Act - Commercial Tax officer of area concerned
• Registration under Central Excise Act - Collector of Central Excise or his nominee for area
• Payment of Income Tax - ITO of the area concerned
• Registration of Partnership deed - Inspector General of area concerned
• Calibration of weights & measures - Weights and Measures Inspector of State
• Power Connection - Designated Officer of State Electricity Board
• Employee strength exceeding 10 with power connection or 20 without power - Chief Inspector of Factories

Environment And Pollution Related Clearances

• Pollution Control - State Pollution Control Board. A No Objection Certificate (NOC) should be obtained from the State Pollution Control Board before commencement of construction activity. In case the industry is of the highly polluting category, a full-fledged or rapid Environmental Impact Assessment(EIA) study has to be carried out and submitted to the State Pollution Control Board for approval, after which the construction can commence.
• Industries Requiring Water and Affecting Effluent Disposal - State Pollution Control Board No Objection Certificate (NOC) should be obtained from the State Pollution Control Board before commencement of construction activity.
• For units functioning outside Industrial Area - Permission from Municipal Corporation/ Municipality/ Panchyat. In case private agricultural land is purchased for the project, the land would have to be rezoned as industrial zone. Permission to convert such agricultural land to industrial area would have to be obtained before the actual start of the construction from the local office of the Directorate of Town & Country Planning.
• Registration and Licensing of a Boiler - Chief Inspector of Boiler. The safety clearance of the Chief Electrical Inspector and the Chief Inspector of Boilers are required before commencing operations with electrical and pressure vessels(boilers) respectively.
• For registration as a 100% export oriented unit (EOU) which can enjoy many additional concessions, the clearance of the Development Commissioner of the Export Processing Zone (EPZ) would be required. If the company wishes to offer equity shares to the public, the clearance of the Stock Exchange Board of India (SEBI) has to be taken.

• Establishing a Printing Press - District Magistrate
• License for Cold Storage Construction - Designated Official in State
• Pesticides - Central/State Agricultural Department - Ministry of Agriculture
• Drugs and Pharmaceuticals - Drug license from State Drug Controller
• Safety Matches/ Fireworks - License under Explosives Act from Directorate of Explosives, Nagpur
• Household Electrical Appliances - License from Bureau of Indian Standards
• Wood Working Industry within 8 km from forest - District Forest Officer
• Milk Processing & Milk products manufacturing units - Approval under Milk and Milk Products Order from State Agricultural/ Food Processing Industries Department above a designated capacity.