Procedures In Setting Up An Enterprise & Legal

Requirements
JUNE 20, 2012
Various legal formalities have to be complied with by an entrepreneur at the stage of setting
up and, at times, at the operational stage of the enterprise.
Some formalities are required to be completed by all categories of entrepreneurs while others
by specific categories of entrepreneurs depending upon their industry line, or equipment
installed or size of the unit. The various legal requirements are listed as below :
PRE OPERATIONAL STAGE :
Sl. Purpose Concerned Office / Agency Remarks
1. Constitution of the Firm-
Partnership/LLP
Company
Registrar of Firms Income Tax Deptt.
Registrar of Companies
Optional
Compulsory
Certificate of
Commencement of Business
2. E.M Part I & II as MSME/
unit
DIC, DI Optional
E.M Part- I & II
3. Commercial Taxes
(Central and State)
Sales Tax Office Registration for Sales Tax
Number
4. Central Excise Deptt. of Central Excise Exemption upto Rs. 400 lakhs Turn
over
5. Factory Act, 1948 Factory Inspectors
Office
Units employing over 10 workers
only if with power; and over 20
worker without power
6. Shop & Establishment Act Local Office of Shop & Establishment Authority For non-manufacturing activity
7. Patents & Trade Marks Trade Mark Registry Where necessary
8. Location Municipal Corporation, Panchayat Office, Industrial
Dev. Corpn, Local Development Authority etc.
No objection Certificate
9. Pollution Control State Authority/Board Pollution NOC
10. Raw Material MSME
DI
DIC
STC/MMTC
Controller of Import/Exports
Quota items
Imported Raw Material
11. Building/Construction State Industrial
Corporation
Local Authorit
Approval of Building Plan
12. Storage of Explosives Dy. Chief Controller of
Explosives
Police Deptt.
Fire Brigade
Chief Inspector of Boilers
Explosive and highly inflammable
goods like Chlorate etc.
13. Erection of Boilers Chief Inspector of Boilers For Operative boilers above certain
size
14. Weights/Measures Inspector of All weights are required to be
Sl. Purpose Concerned Office / Agency Remarks
Weights &
Measures Deptt.
verified/stamped before use
15. Electronic Items
16. Drugs
Allopathic
Ayurvadic
Siddha
Unani
Homeopathic
State Drugs
Controller
Clearance for Drugs and
Cosmetic
17. Meat Food Sr. Marketing Officer Directorate of Marketing and
Inspection Ministry
of Rural Reconstruction
Licence under Meat
18. Fruit Products Dy. Director (Food & Vegetable Preservation), Office of
the Food and Nutrition Board,
Ministry of Agriculture
Licence under Fruit Products
Order, (FPO)1954 & 1974
19. Cold Storage (Construction,
Expansion, Operation)
Regional Officer,
Directorate of Horticulture
Cold Storage Order
1980 and 1983
20. Food Articles (Manufacture
Sale, Storage Distribution)
Local Body like Clearance under Prevention of Food
Adulteration, Act, 1954
21. Wheat Products Food Department of State Govt. Obtaining prior concurrence of State
Govt.
22. Rice Mills Food Deptt. of State Govt. Permit for Rice Mill Constitution
(Rice Milling Regulation, 1958)
23. Power Looms Textile Commissioner Clearance for establishing power
looms under the Textile
(Control Order)
24. Denatured spirits, methyl and
varnish (French Polish)
Prohibition and Excise Deptt. Licence required for industrial
applications under State Rules
25. Media Printing Press Distt. Magistrate/Distt. Revenue Officer/Public
Authorities
Declaration required to be submitted
for running the press/ ministry
26. Insecticides (Import or
manufacture)
Central Insecticides Board and Registration Committee,
Directorate of Plant protection quantitative and Storage,
NH IV Faridabad 121001 (Haryana)
Registration for manufactu
27. Mixed Fertilizers Director of Agriculture Registration for preparing mixed
fertilizer
At the operating stage various Labour/Commercial laws have to be abided by.