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Factory Licenses / Registrations

It is obligatory for every company setting up shop in India to abide by the predefined factory rules and regulation by the GOI. This includes meeting the pollution and safety requirements as well as upholding the rights of an employee. Let's have a look at some mandatory regulations that companies have to follow.

1. Registration under Factories Act/Shop Establishment Act

Every Corporate Entity (including shops and other establishments) needs to compulsorily register under this Act within 30 days of starting work. This basic license can be regarded as proof of commercial business and will be required to open a current account.

2. Fire & Safety Compliances

According to Rule 61 and Rule 62 of The Factories Act 1948, provisions have to be made in the company regarding fire and first-aid requirements. Compliances have to be made under the Fire Protection & Safety Requirements for Assembly, Institutional, Educational, Business, Mercantile, Hotel, Hospital, Nursing homes, Underground complexes, Industrial storage, Meeting/banquet halls, and Hazardous occupancies. Safety measures have also been separately spelt out in the rules.

3. Pollution Control Board

Pollution Control Board compliances include Environmental Clearance (EC) work, Environmental Audit, Consent to Establish and Consent to Operate, Environmental Statement (ES), Air Pollution Monitoring, Water, Waste Water and Soil analysis, Statutory periodical submission - Water Cess report,Form IV - Under Hazardous Waste Rule 2008,Form V as per EPA guidelines, Environmental Impact Assessment, Waste Handling Authorization - Hazardous, Biomedical, e-waste, Personal Training, and Treatability Studies and Feasibility Report

4. Employees State Insurance Act

Every employer covered under the Employees State Insurance Act has to comply with various compliances such as deposit of monthly contribution, filing half yearly return and reporting to ESIC authorities if there is any change in business activity, address, ownership and the management and maintenance of registers and records etc.

5. Food Safety and Standards Authority of India

The Food Safety and Standards Authority of India (FSSAI) Registration is for food business. Hence, every food business operator involved in the manufacturing, processing, storage, distribution, and sale of food products must compulsorily obtain an FSSAI Registration /License. For corporate entities, FSSAI has also introduced the Food Recall Plan.

6. Micro, Small and Medium Enterprises

MSME Form 1 is a mandatory compliance for the specified companies that fall under the specified sections of the MSMED (Micro, Small and Medium Enterprises Development) Act. These companies have to file the MSME Form 1 on a half-yearly basis to the MCA (Ministry of Corporate Affairs).

7. Drug Controller of India

The Central Drugs Standard Control Organisation (CDSCO) ensures safety, efficacy, and quality of the medical product manufactured, imported, and distributed in the country via certain regulations. The Drugs & Cosmetics Act,1940 and rules 1945 has entrusted various responsibilities to central & state regulators for regulation of drugs & cosmetics.

8. Import & Export Code

Import Export Code (IEC) is a 10 digit number issued by the Director General of Foreign Trade (DGFT). For any person who wishes to get into the import/export business in the country, having an IEC code is a requirement. Import merchants cannot import goods without the IEC and similarly the export merchant cannot avail the benefits from DGFT for the export scheme without IEC.

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