1. Factory License (If Manufacturing Activities Are Planned)
Buyers intending to set up a manufacturing unit must obtain a Factory License under the Factories Act, 1948 from the State Labour Department. This license ensures:
- Compliance with health, safety, and welfare norms
- Approval of the building layout and worker facilities
- Validity to operate machinery with prescribed manpower levels
It is mandatory for units employing 10 or more workers with power, or 20 or more without power.
2. Trade License
A Trade License is issued by the local Municipal Corporation or Urban Local Body (ULB), depending on the activity. It is required to:
- Legally operate a business from a particular location
- Ensure the business complies with local laws, taxes, and zoning norms
- Permit commercial or industrial activity in the area
Applicable to service units, light manufacturers, and trading entities.
3. Building Plan Approval and Construction Permit
If construction is required on the land, the buyer must apply for:
- Building Plan Approval from the local town planning or municipal authority
- Construction Permit in compliance with the development control regulations
- Commencement Certificate (CC) and Completion Certificate (CC) post-construction
These are necessary before starting any physical development on the land.
4. Environmental Clearance and Pollution Control Consents
For industries that have environmental impact or pollution potential, the buyer must obtain:
- Consent to Establish (CTE) and later Consent to Operate (CTO) from the State Pollution Control Board (SPCB)
- Environmental Clearance (EC), if required under the EIA Notification 2006
- Approval for hazardous waste management, if applicable
This is essential for compliance with Environmental Protection Act, 1986 and pollution control norms.
5. Electricity and Water Connection Approvals
To run operations, buyers need to apply for utility services:
- Industrial electricity connection from the local electricity board or distribution company
- Water supply connection from the local municipal body or industrial infrastructure provider
- Approval for borewell usage from the Central Ground Water Authority (CGWA), if required
These utilities are essential for daily functioning and compliance.
6. Labour and Welfare Registrations
Buyers employing workers must secure registrations under:
- The Shops and Establishments Act
- Employees’ State Insurance (ESI) Act
- Employees’ Provident Fund (EPF) Act
These ensure compliance with labour laws, wage regulations, and worker welfare standards.
7. Sector-Specific Licenses
Depending on the industry type, the buyer may also require:
- FSSAI License for food processing or packaging units
- Drug License for pharmaceutical manufacturing
- Boiler and Pressure Vessel Certification for steam or thermal operations
- Explosive License for chemical or hazardous material storage
These licenses are activity-specific and issued by respective regulatory authorities.
8. GST Registration
Buyers intending to operate any commercial activity must also obtain GST (Goods and Services Tax) Registration from the Central Board of Indirect Taxes and Customs (CBIC) for:
- Invoicing and tax compliance
- Input credit eligibility
- Registration under the correct business category (manufacturing, trading, etc.)
