Here is the list of approvals and clearances
required for setting up a new venture in India
Setting Up A New Venture in India
For setting up a company formally in India, one is required to fulfill a slew of formalities. As per an estimate, one would require more than a month to complete all the filework and office work. For foreign firms, it is mandatory to obtain government approval for incorporating in India or forming a joint venture in India. Certain restrictions apply in some sectors. One is advised to seek proper legal advice before setting up a formal business in India.
For setting up a new venture in India, a number of approvals/clearances are required from different authorities such as Pollution Control Board, Chief Inspector of Factories, Electricity Board, Municipal Corporations, etc. Though the government has reduced the legal formalities for starting a business in recent years, a good number of legal requirements are still up there.
| Approvals/Clearances Required |
Department to be Approached and
Consulted |
| Incorporation of Company |
Registrar of Companies |
| Registration/IEM/ Industrial license |
DIC for SSI/SIA for large and medium
industries |
| Allotment of land |
State DI/SIDC/Infrastructure
Corporation /SSIDC |
Permission for land use
(in case industry is located outside an industrial area) |
a. State DI
b. Dept. of Town and Country Planning
Local authority / Distt. Collector |
| NOC and consent under Water and Air
Pollution Control Acts |
State Pollution Control Board |
|
Approval of construction activity and building plan |
a. Town and country planning
b. Municipal and local authorities
c. Chief Inspector of Factories
d. Pollution Control Board
e. Electricity Board |
|
Sanction of Power |
State Electricity Board |
|
Use and storage of explosives |
Chief Controller of Explosives |
|
Use and storage of explosives |
Chief Controller of Explosives |
|
Boiler Inspection Certificate |
Chief Inspector of Boilers |
|
Finance |
i. SFC/SIDC for term loans
ii. For loans higher than Rs. 15 Million, all India financial
institutions like IDBI, ICICI, IFCI etc. |
|
Registration under States
Sales Tax Act, and
Central and State Excise Act |
i. Sales Tax Department
ii. Central and State Excise Depts. |
|
Other Registrations and Clearances |
|
Extraction of Minerals |
State Director of Mines and Geology |
|
ISI Certificate |
Regional Office of the Bureau of
Indian Standards (BIS) |
|
Quality Marking Certificate |
Quality Marking Center of the State Government |
|
Weights and Measures |
Inspector of Weights and Measures |
|
Code Number for Export and Import |
Regional Office of Director General of Foreign Trade. |
