Setting up MSME-Clearances


An entrepreneur has to obtain several clearances or permissions depending upon the nature of his unit and products manufactured.

Regulatory or Taxation Clearances

1. Registration under Sales Tax Act - Commercial Tax officer of area concerned
2. Registration under Central Excise Act - Collector of Central Excise or his nominee for area
3. Payment of Income Tax - ITO of the area concerned
4. Registration of Partnership deed - Inspector General of area concerned
5. Calibration of weights & measures - Weights and Measures Inspector of State
6. Power Connection - Designated Officer of State Electricity Board
7. Employee strength exceeding 10 with power connection or 20 without power - Chief Inspector of Factories

Environment & Pollution Related Clearances

The method of granting consent under water and air pollution to SSI units has been simplified. Except for 17 critically polluting sectors given below, in all other cases SSI units will merely have to file an application and obtain an acknowledgement which will serve the purpose of consent:-
1. Fertilizer (Nitrogen/Phosphate)
2. Sugar
3. Cement
4. Fermentation & Distillery
5. Aluminum
6. Petrochemicals
7. Thermal Power
8. Oil refinery
9. Sulphuric Acid
10. Tanneries
11. Copper smelter
12. Zinc smelter
13. Iron & Steel
14. Pulp & Paper
15. Dye and Dye intermediates
16. Pesticides manufacturing and formulation
17. Basic Drugs and Pharmaceuticals

Product Specific Clearances

1. Establishing a Printing Press - District Magistrate
2. License for Cold Storage Construction - Designated Official in State
3. Pesticides - Central/State Agricultural Department - Ministry of Agriculture
4. Drugs and Pharmaceuticals - Drug license from State Drug Controller
5. Safety Matches/ Fireworks - License under Explosives Act from Directorate of Explosives, Nagpur
6. Household Electrical Appliances - License from Bureau of Indian Standards
7. Wood Working Industry within 8 km from forest - District Forest Officer
8. Milk Processing & Milk products manufacturing units - Approval under Milk and Milk Products Order from State Agricultural/ Food Processing Industries Department above a designated capacity.