Statutory Clearances required forsetting up your business- By Sudip Malik
What is a Statutory Clearance?
Before we start any enterprise, we should have
some clearances from the Govt.
For example : Green Pollution Clearance
Certificate which states that our business is not
polluting the environment
‘Statutory’ means ‘essential’ and this should be
approved and ‘cleared’ by the Govt.
Awareness problem
Many entrepreneurs are not familiar with govt
acts & rules (laws) , compliances (requirements),
application forms.
They are not aware of the location of the
Government offices to submit the application for
approvals / certificates / licenses to start their
business.
Multiple visits and wastage of time
Entrepreneurs make several visits to various
government departments, agencies and offices
for enquiry, consultation, guidance and finally to
submit their applications.
Apart from the usual harassment, they often have
to deal with agents and touts.
Ease of Doing Business
The Govt. has made it easier for entrepreneurs to
do business.
The District Industries Centres (DICs) in every
district will help.
This will make it easier for an entrepreneur who
aspires to start a new business.
DICs - contact points for all
entrepreneurs in every state
They provide various services:
• Processing of Udyami Aadhar Memorandum
• Incentive Programmes & Schemes
• Support for PMEGP Loans
In addition there are other value-added services
provided :
• Meeting with Banks, Govt. Depts. for Statutory
Compliances
How the DIC will help regarding
statutory compliances?
• Make various application form(s) available
to the applicant (especially the Green Pollution
Clearance Certificate)
• Guide the entrepreneur to fill up the
application form with all relevant documents
attached as per a checklist
Submission, Tracking & Delivery
• Ensure that the application is complete in all
respects
• Submit the application to the respective
government offices (especially the Green
Pollution Clearance Certificate) on behalf of
the applicant
•, Track progress and take delivery of the
certificate/license and finally hand it over to
the applicant
List of Usual Approvals / Clearances / Licenses
There is a need for Approvals / Clearances / Licenses from the different
departments of the Government to operate smoothly.
Departments Approvals/Clearances/Licenses
•Land & Land Reforms Mutation and Conversion of land; LTS and
14Y Exemption cases
•Fire & Emergency Services Fire Safety Certificate & License
•Municipal Affairs/Urban Site Plan and Building Plan approval,
Land-use change permission
•Municipal Affairs Trade License
•Labour Factory License, Shops & Establishment
License, Boiler License, ESI, EPF
•Environment Pollution Certificates
•Food Processing & Food Safety License/Drug License
Horticulture / Health
•Power New connection; capacity expansion,
installation of Generator
•State Water Investigation Permission for ground water
•Finance VAT, Professional Tax, CST, Excise, Service
•MSME&T and C&I Udyami Aadhar Memorandum; Incentives;
Land
Departments Expected timelines for delivery of certificate /
license*
Dept. of Environment & Forest Consent to Establish and Consent to Operate
Green – 21 days, Orange - 1 month, Red – 2 months,
Hazardous Waste – 2 months
Department of Food Processing Industry
and Horticulture
140-150 days
Dept. of Power & Non-conventional
Energy Sources
15 to 30 days
Commercial Tax 30 days
Labour, Land & Land Reforms, Finance,
Fire, Municipal Affairs, Commerce &
Industry,
Information available from the website contact
numbers of the individual departments
(This information is also expected to be made
available shortly)
Indicative Timelines for delivery of the
certificate or license against an Application
* Subject to completeness, accuracy of all applications and supporting documents
Entrepreneurship Support at DICs
Discussions with Entrepreneurs at MSME Facilitation within a DIC
Registering Entrepreneurs on
Udyami Aadhar Memorandum
MFC Centre within a DIC in Kolkata
Useful Links
http://msme.gov.in/
http://www.dcmsme.gov.in/