Starting a manufacturing business in India?
Getting the legal and compliance part right isn’t optional — it’s essential to run smoothly, avoid penalties, and become eligible for schemes, loans, and tenders. This guide simplifies all key registrations, licenses, and regulatory steps for MSME manufacturers.
1. Business Registration — Get This First
Before anything else, formalize your business identity
Must-Do:
✅ Apply for Udyam Registration (free, online)
✅ Get a PAN, GSTIN if turnover exceeds threshold or you sell outside your state
2. Factory License under the Factories Act, 1948
If your unit has:
10+ workers with power OR
20+ workers without power 👉 You must register under the Factories Act and obtain a license from your State Labour Department.
Documents typically required:
Identity and address proof of owner(s)
Layout plan of the factory
Consent from State Pollution Control Board
Machinery list with HP details
🕒 Processing time: 15–30 working days. Renew annually or as per state-specific norms.
3. Pollution Control Board (PCB) Consent
You cannot start operations without environmental clearance:
Industries are classified as:
White (low pollution – minimal compliance)
Green
Orange
Red (high impact – stricter norms)
🔍 Check your category on your State PCB site or CPCB
4. Fire Safety NOC
Required from local Fire Department
Needed for Factory License, Insurance, or applying for PMEGP/loans
Basic fire safety installations: extinguishers, smoke alarms, exits
5. Labour Law Registrations (if you hire workers)
💡 Tip: Even if you're under the threshold, following labour laws builds trust and eases future expansion.
6. Taxation, Invoicing & Compliance
✅ You must:
Obtain GST registration (if turnover exceeds ₹40L or inter-state trade)
Maintain monthly records for:
Input/Output tax (GST returns)
Vendor bills, sales invoices
TDS (if applicable)
🧾 Key returns:
GSTR-1, GSTR-3B monthly or quarterly
Annual return (GSTR-9) if applicable
Use tools like Vyapar, Zoho Books, Tally or ClearTax for simplified invoicing and return filing.
7. Optional but Recommended Registrations
8. Compliance Calendar — What to Track Regularly
📌 Missing a deadline can attract fines up to ₹1 lakh+ and even closure notices from departments.
Key Takeaways
Get your legal and compliance setup ready before starting production
Udyam, GST, Factory License, and PCB NOC are the top 4 must-haves
Maintain basic labour records even if you hire few people
Automate GST, billing, and return tracking to avoid errors
Let’s Discuss
Have you faced any hurdles in getting licenses or dealing with departments? Do you want help in knowing which laws apply to your factory size?
Share your thoughts in the comments or start a thread at Manthan.