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Since the liberalization and deregulation of the Indian economy in 1991, most industries have been exempt from obtaining an industrial license to start manufacturing in India. Government attention is reserved only for those industries that may impact public health, safety, and national security.

In India, industrial licenses are regulated by the IDRA, 1951 Act, and are approved by the Secretarial of Industrial Assistance (SIA) on the recommendation of the licensing committee.

The provisions of the Act restrict a licensed industrial undertaking from manufacturing a new article unless the license has been renewed or a new license has been obtained to include the new article.

Industries that require industrial licensing for manufacturing in India include:

• Industries under compulsory licensing; and,
• Industrial undertakings attracting location restrictions. The licensing provision also applies to the expansion of the existing industrial units.

Industries subject to compulsory licensing in India

Businesses planning to establish industries to produce any of the following items in India must obtain a compulsory license:

• Tobacco items
• Defense aerospace and warships
• Hazardous chemicals
• Industrial explosives

Because of environmental, safety, and strategic concerns, above sectors require mandatory licensing.

Offering Industry Licensing Services

Complus Consulting offers guidance on how to satisfy an industry’s licensing needs.

Incorporation of a partnership, LLP, or company

Certificate of Incorporation, Memorandum of Association / Articles of Association, and Ownership Proofs are essential for scaling the particular business and require several licenses from the relevant authority.

Udyog Aadhaar Registration

Entrepreneurs and business startups that desire to launch and run a Micro, Small, and Medium Enterprise (MSMEs) can register on UdyogAadhar Registration to take advantage of government services.

Shop and Establishment Licenses

State-by-state labor departments set regulations for the registration of businesses and establishments as well as for employee rights and benefits.

License for BOCW

A building and other construction worker registration certificate must be obtained by a contractor / employer within 60 days of hiring ten or more workers for any building or other construction project.

Registration with ESI / EPFO

According to the new notification, ESI and EPF registration would be required for all new companies to be taken at the time of incorporation. Separate ESI and EPF registrations would not be possible using the ShramSuvidha platform.

Contract Labour License

Before opening for business, every factory owner must get the building approved for use as a factory, register their factory and obtain a license for running the same with the local government.

Inter-State Migrant Workmen

When there is a skill gap among the available workers, contractors hire better-skilled people from other states who are available. Such hiring requires registration and licensing too from the local appropriate / concerned authorities.