Setting up a Manufacturing Business in India

We offer legal guidance on setting up a manufacturing company in India, ensuring navigation through the complex regulatory environment. Our specialized services are tailored to assist entrepreneurs in setting up manufacturing businesses in India efficiently and compliantly.

  • We provide end-to-end legal support for setting up a manufacturing plant in India, covering licensing and securing intellectual property rights.
  • Our team offers informed advice on local government incentives, critical for establishing a cost-effective manufacturing operation.
  • We can facilitate connections with potential investors for business growth and collaboration in the manufacturing sector.
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Procedure for Setting Up a Manufacturing Business in India

Business Incorporation

Register the business entity (Private Limited Company, Public Limited Company, or Partnership) with the Ministry of Corporate Affairs (MCA) via the SPICe+ form, which includes the application for the company’s name, incorporation, DIN (Director Identification Number) and PAN/TAN. This is the first step in starting a manufacturing company in India.

Obtain Industrial License

Apply for an Industrial License under the Industries (Development & Regulation) Act, 1951 if the manufacturing business falls under the list of industries that require licensing (like defense, explosives, hazardous chemicals, etc.). This can be done through the e-Biz portal, essential for setting up a manufacturing business in India.

Land Acquisition and Zoning Compliance

Acquire land in designated industrial areas approved by the state government. Ensure compliance with local zoning and land-use regulations, which can be verified through the local municipal authorities. This step is critical when setting up a manufacturing plant in India.

Environmental Clearances

Depending on the type of manufacturing and the environmental impact, obtain clearances from the State Pollution Control Board (SPCB) or Central Pollution Control Board (CPCB) under the provisions of the Environment (Protection) Act, 1986.

Factory Registration

Register the manufacturing facility with the local governing authorities under the Factories Act, 1948. This involves submitting plant layout plans and obtaining a factory license for operations.

Foreign Investment Facilitation

If the manufacturing business involves foreign direct investment (FDI), ensure compliance with the regulations prescribed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the automatic route or the government approval route, depending on the sector and extent of FDI.

Goods and Services Tax (GST) Registration

Register for GST if the business turnover exceeds the threshold limit which is subject to change as per tax laws. This is crucial for seamless inter-state and intra-state sales and the availing of input tax credits.

Compliance with Labour Laws

Comply with relevant labour laws which include registration under the Employee State Insurance Act (ESI), Provident Fund Organization (EPFO) and compliance with the Minimum Wages Act, among others.

Obtain Necessary Utility Connections

Apply for necessary utilities like electricity and water connections. This typically involves separate applications to the respective state departments or local bodies.

Annual Compliance and Renewals

Ensure timely renewal of licenses and adherence to filing annual returns with respect to company law, factory regulations, environmental regulations and labour laws.

Documents Required for Starting a Manufacturing Business

Photographs of all partners or directors involved in the business are required for identification and documentation purposes.
PAN cards of all directors are essential for tax compliance and financial transactions associated with the business.
Valid identification proofs such as Aadhar card, Voter ID, Driving Licence or Passport of all directors are needed to verify their identity and establish their eligibility for company leadership roles.
An electricity bill serving as address proof for the registered office is necessary to validate the business’s physical location.
If any directors are foreign nationals, a passport is mandatory as proof of identity and residency status.
Depending on the nature of the manufacturing activities and the products involved, obtaining an industrial license may be necessary. The government prioritizes regulating industries with potential impacts on public health, safety, and national security. Compulsory licenses are mandated for sectors such as tobacco products, defense aerospace, warships, hazardous chemicals, and industrial explosives.
This includes Land deed or lease agreement, Land Use Permission from local municipal authority and Building plan approval from municipal corporation or relevant authority.
This includes the Factory license application form, Site plan of the factory premises, and installation list of machinery and equipment.
Obtaining essential registrations and licenses is imperative, these include a GST certificate for tax compliance, a No Objection Certificate (NOC) from the State Pollution Control Board to ensure environmental compliance, and factory insurance policy documents insurance for workers under the Workmen’s Compensation Act. A trade license from the local municipal authority is necessary for legal operation, while Udyog Aadhar registration offers benefits for small and medium enterprises (SMEs).
In addition to other registrations, compliance with the Employee’s Provident Fund Organisation (EPFO) and Employee State Insurance Corporation (ESIC) is crucial for setting up a manufacturing business in India. EPFO registration ensures that employees receive benefits like provident fund, pension, and insurance, while ESIC registration provides them with medical and disability benefits. Both registrations safeguard the interests of employees and fulfill statutory requirements ensuring compliance with the Minimum Wages Act.

Obtaining a No Objection Certificate (NOC) from the electricity board ensures a reliable power supply and compliance with safety regulations, as well as securing an NOC from the water supply department ensures sustainable water management practices and lawful access to water resources essential for manufacturing processes.

Why Choose Us?

Legal Solutions

We understand that each manufacturing business is unique, and therefore, we offer customized legal solutions to our clients to start a manufacturing company in India.

Comprehensive Support

From initial conceptualization to full-scale operations, Burgeon Law provides support at every stage of the process.

Specialized Knowledge

We possess in-depth knowledge of the regulatory landscape, ensuring seamless navigation through compliance requirements specific to the manufacturing sector.

Our Team

Abhisshek Singlla

Abhisshek Singlla

Partner

Anish Jaipuriar

Anish Jaipuriar

Partner

Ankit Bhasin

Ankit Bhasin

Partner

Work Highlights

Expansion of a Leading Tech Company into the Indian Market

We facilitated the establishment of a greenfield manufacturing facility for a multinational corporation entering the Indian market. Our team navigated complex regulatory requirements, obtaining necessary licenses and permits, and provided strategic advice on land acquisition and construction, enabling the client to commence operations smoothly and expediently.

Joint Venture between a Global Pharmaceutical Giant and an Indian Biotech Firm

We assisted a domestic manufacturing company in expanding its operations to multiple states in India. We ensured compliance with diverse state-specific regulations, obtained necessary approvals and registrations, and advised on tax structuring and incentives, facilitating the seamless expansion of the client’s manufacturing footprint across the country.

Resolution of a Cross-Border Dispute for an International E-commerce Player

We advised a client on the acquisition and restructuring of a distressed manufacturing business in India. We conducted due diligence, negotiated acquisition terms, and navigated legal complexities related to asset transfer, employee retention, and creditor negotiations, ultimately facilitating the acquisition and successful turnaround of the manufacturing enterprise.

Client Testimonials

FAQs

Choose Burgeon Law for setting up your manufacturing business in India for our specialized expertise and proactive approach. Our experienced attorneys specialize in navigating the unique legal landscape of the manufacturing sector, providing tailored solutions to ensure compliance with regulations and maximize efficiency. With a proactive approach, we anticipate challenges and mitigate risks, offering end-to-end support from entity formation to ongoing compliance.
To start a new manufacturing business in India, several legal requirements must be met. Firstly, businesses need to register with the Ministry of Corporate Affairs (MCA) under an appropriate legal structure such as a Private Limited Company or LLP. Depending on the nature of manufacturing activities, an industrial license may be necessary from the Department of Industrial Policy and Promotion (DIPP) or state authorities. Environmental clearance must also be obtained from the State Pollution Control Board (SPCB) for units impacting the environment. Additionally, compliance with tax regulations entails obtaining Goods and Services Tax (GST) registration.
We can provide comprehensive assistance throughout the registration process for a manufacturing business in India. Our services include guiding you through the selection of the appropriate legal structure, such as a Private Limited Company, LLP, or Sole Proprietorship, based on your specific requirements and objectives. We’ll then handle all necessary paperwork and documentation for business registration with the Ministry of Corporate Affairs (MCA), ensuring compliance with relevant regulations and laws. Our team will also oversee the application for obtaining industry-specific licenses.
Yes, we can assist with securing intellectual property (IP) for your manufacturing business in India. Our team of experienced attorneys specializes in intellectual property law and can provide comprehensive support throughout the process. Whether you need assistance with trademark registration to protect your brand name and logo, patent registration to safeguard your manufacturing innovations and processes, or copyright registration for your product designs and technical drawings, we have the expertise to guide you through each step.
We provide tailored ongoing legal and compliance support for manufacturing businesses, ensuring smooth operations and regulatory adherence. Our services encompass regulatory compliance, contract management, employment law guidance, intellectual property protection, and dispute resolution. By offering comprehensive support, we enable manufacturing businesses to focus on their core operations while minimizing legal risks and ensuring compliance with relevant laws and regulations.

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