Licensing Tips for Manufacturers in India
When you start making things in India, licensing, the official permission required to legally operate a manufacturing unit. Also known as manufacturing permits, it’s not just paperwork—it’s the gatekeeper to subsidies, bank loans, and even power connections. Skip it, and you’re running a risky operation. Get it right, and you unlock government schemes, tax breaks, and credibility with buyers.
Most small manufacturers don’t realize Udyam Registration, the simplified MSME registration system introduced in 2020. Also known as MSME registration, it’s free, online, and required before you can apply for most other licenses. You’ll also need a Factory License, issued by the state labor department under the Factories Act. It’s not optional if you have 10+ workers or use power-driven machinery. Then there’s the Pollution Control Board Clearance, mandatory if your process emits fumes, wastewater, or noise. Many startups get stuck here because they wait until after buying equipment. Don’t. Check requirements before you spend a rupee.
Don’t assume one license covers everything. A food processor needs FSSAI. A plastic maker needs BIS certification. An electronics assembler might need BIS or ISI. Each has its own form, fee, and inspector. Keep a checklist. Track deadlines. Save copies. The licensing process isn’t glamorous, but it’s the bedrock of any lasting manufacturing business. Below, you’ll find real examples from Indian makers who cut through the red tape—some by accident, others by design. Learn from their mistakes and shortcuts.
