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.