Industrial Licensing Services: Compliance & Expert Support

Industrial Licensing Services

In 1991, India’s economy was liberalized and deregulated, and industrial licenses were no longer required for most firms to commence production. However, certain industries that may impact public health, safety, or national security are subject to government scrutiny.

The IDRA 1951 Act governs industrial licenses in India, which are granted based on the recommendation of the licensing committee by the Secretariat of Industrial Assistance (SIA). The Act prohibits licensed industrial ventures from producing a new article without renewing the license or obtaining a new one. Industries in India that require industrial licensing include those that are subject to compulsory licensing, industrial undertakings that are restricted by geography, and current industrial unit expansions.

India's industries require mandatory licensing.

Defense aerospace and warships
Hazardous chemicals
Industrial explosives
Tobacco items

Incorporation of a partnership, LLP, or company

Certificates of incorporation, memoranda of association/articles of association, and ownership proofs are essential for business scaling and require relevant licenses.

Udyog Aadhaar Registration

Entrepreneurs and business startups looking to launch and run Micro, Small, and Medium Enterprises (MSMEs) can now register on UdyogAadhar Registration to take advantage of government services.

Shop and Establishment Licenses

Each state’s labor department regulates business registration, employee rights, and benefits.

License for BOCW

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

Registration with ESI / EPFO

ESI and EPF registration are now mandatory for all new companies at the time of incorporation. Separate registrations cannot be done through ShramSuvidha platform.

Contract Labour License

The principal employer is responsible for ensuring that all requirements of the CLRA license are met to protect the welfare of contract workers, whether they work directly under a contractor or through a subcontractor.

Factory License

Before commencing operations, every factory owner must obtain approval from the local government to use the building as a factory, register the factory, and obtain a license to operate.

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