India is one of the fastest-growing economies in the world, and it is also transforming into a global manufacturing powerhouse. With the new initiatives from the government of India, such as “Make in India”, this initiative helps to transform India into a global manufacturing hub, “Production Linked Incentive (PLI) Schemes”, which provide financial support for domestic manufacturing companies, and “Startup India” for setting up new businesses, these initiatives offer numerous benefits for foreign investors.
So, before stepping into this market, an important step is to register your manufacturing company in India. A well-structured registration process will help you build legal credibility, funding, and smoother operations.
In this article, we have covered a step-by-step guide on manufacturing company registration in India, covering structure, legal document requirements, and licenses for foreign investors and businesses.
Types of Business Structure for a Manufacturing Company
Choose the right business structure based on ownership, liability, and management needs. Common options include:
- Limited Liability Partnership (LLP): This structure has flexible management and has limited accountability for the debts and liabilities of the company.
- Private Limited Company (pvt ltd): This type of structure is the type of entity who owned by an individual or a group of people.
- Wholly Owned Subsidiary: This mainly helps international investors who want to enter the Indian markets.
- Partnership Firm: This structure is run by two or more individuals and operates a business under legal agreements.
- Sole Proprietorship: This business structure is owned by a single individual and run as a business with no legal separation between the owner and the business
Process of Registering a Manufacturing Company in India
Registration involves several steps. A typical flow is:
- Select Business Structure: The first step to setting up a manufacturing company in India is to choose the right business structure. Depending on your business plan, you can opt for a Pvt Ltd company, a Partnership firm, LLP, or a Sole proprietorship. Once you finalize the structure, the next step is to reserve your name under the Ministry of Corporate Affairs (MCA).
- Obtain DSC & DIN Certificate: Obtain a Digital Signature Certificate (DSC) for directors and to secure obtain for Director Identification Number (DIN). Once it’s done, the Registrar of Companies (ROC) issues the Certificate of Incorporation, which legally recognizes your business.
- Apply for Mandatory Registrations: This includes GST registration if your turnover exceeds limits, obtaining a Factory License under the Factories Act, and, if you are planning to trade internationally, applying for an Import Export Code (IEC).
- Compliance with Labour Laws: Comply with labour laws under the Employees Provident Fund (EPF), Employee State Insurance Act (ESI), and you must also comply with labour laws such as the Industrial Dispute Act and other state-specific labour laws.
Documents Required for Starting a Manufacturing Company in India:
Typical documents needed to start a manufacturing company include:
- Pan cards of all directors.
- ID proof of all directors.
- ID Address proof (Pan card, Aadhar card, Passport, Driving license)
- Address proof (eg: electricity bill, rent agreement)
- Photographs of all directors.
- Memorandum of Association (MOA) and Articles of Association (AOA).
Necessary Licenses and Permits
To operate a manufacturing business in India, obtaining the necessary license and permits is a must. It depends on the nature of your business, the state in which you are based, and the industry you are operating in. Some important licenses are included:
- Fire NOC license.
- Factory license.
- Labour license.
- Food Safety and Standards Authority of India license.
- Trade license.
- Shops and establishments license.
- Such other licenses as may be required for the specific industry.
Conclusion
Setting up a manufacturing company in India may be challenging due to the detailed process, so with the help of professionals, it can be done with the right planning and by ensuring all legal formalities are met properly. From selecting the best business structure to document requirements, every step ensures smooth operations and eligibility for government benefits.
At KDP Accountants, we specialize in helping foreign companies set up a company in India, NRI taxation, and register a manufacturing company. Our team of experts provides end-to-end support from company formation to ongoing tax and legal advisory. For more information, connect with us at enquire@kdpaccountants.com.
