If you own a manufacturing firm you need a list of licenses that no MBA teaches you, most of the businesses don't have the required paper till some inspector doesn't come and informs them whats needed. Unfortunately there is no ready-reckoner, so I decided to make one the best way I could, from what I have learnt from my own experience. I have experience in Delhi but around India only organisations giving the licenses differ, licenses more-or-less remain similar.
1. GST Registration is known by everyone, but still needs mention since a proprietorship company has no other proof of existence.
2. MSME Registration of the company is not compulsory but has many advantages, MSME registration is also known as Udyog Adhaar and getting it is as simple as creating an e-mail. It's completely online and happens instantly. You just need to check your business's NIC Code from this link. The importance of MSME registration lies in the fact that all government schemes need you to have an Udyog Adhaar, schemes like, cheap loans, loans/limit's where the government provides collateral to the banks. Also there is a quota where-in big companies and govt institutions have to source a certain percentage from MSME Registered companies. Also, if you have an Udyog Adhaar and a Large company has with held your payment for over 45 days, they will have to report this information in the filings because by law they cannot hold our payments beyond that period, however, while registering yourself as a vendor you must inform them that you have this registration.
3. Factory License - You must have a valid factory license, renewed every year to run your manufacturing firm in Delhi, this factory license can be obtained from your local MCD's website. The process is completely online but the local factory inspector usually visits before issuing a license. The most typical part of the process is selecting the correct industry type. link) of Industry Type can be confusing as the same industry is mentioned multiple times in different lists (ie. green, white, orange & red).
4. DPCC Consent to Operate - The Delhi Pollution Control Committee also has a website where you have to apply online and although usually an inspector does not visit if your industry type is White or Green but the online process is pretty much a farce because even if there is a slight error, and errors are going to be there since not all forms are required by all businesses but unless you upload all forms the site doesn't move forward. Also, the first consent you get is Consent to Establish, which unlike its name almost everyone gets post-establishing because it takes 2-3 months for them to reject your first application, then you apply again and wait another 2-3 months. Then within a year of Consent to Establish you need to apply for Consent to Operate, which you will get only when their committee sits on your application which can be quarterly depending upon how much pressure they have from NGT. The process is easier through agents but I had applied for all of these myself.
5. ESI & PF - Firms that have an excess of 20 workers need ESI & PF registration, this despite what people think is a very beneficial registration for your workers as there is hardly any factory labor who has financial planning acumen, PF is a great way for them to secure their future and ESI is literally a life savior as it gives them free health facilities at ESI Hospitals. Also, to bust a myth, there are a few organisations who show their workers as 'Contract Labour' and think they dont need to register, in reality there is a separate registration in Ministry of Labour & Employment for contract labour registration.
Now with the coming of Labour Identification Number or LIN number, all labour related activities have come under a single website (Shram Suvidha Portal) which has made the entire process much of monthly/yearly filings and of adding or removing employees/contract labour much easier.
6. Shops & Establishment License: This is another easy license to get online and is as simple as generating an email id. All points of sale need this within 30 days of establishment and is also useful as a second proof of business after your GST registration.
Getting all these licenses takes time but they are an important part of your growth over the last 8-9 years the systems have become much easier with minimal inspector interaction. I have not mentioned certain other licenses like Fire Safety Certificate, Boring-permissions etc because they pertain to buildings and not businesses.
Over the last 5 years 1000s of businesses have been shut down by sealing (in delhi) imagine the jobs
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