Incorporate an Indian Company for the Project
The following initial steps are required for an Indian Company:
- Director Identification Number (DIN)
- Digital signature certificate from agency certified by MCA
- Reserve the company name with the Registrar of Companies
- Register a Company
- Permanent Account Number
- Tax Account Number (TAN)
- Certificate of Incorporation
Through the eBiz initiative launched on 16 August, 2014, compliance/approvals under the above heads has been made online, and this service is now available to entrepreneurs on 24x7 basis at the eBiz website, without human interface. This will lead to ease of filing applications and online payment of service charges and ensure that no entrepreneur has to come to the Ministry to file his/her application or make payment. https://www.ebiz.gov.in/listofservices
Apply for IEM to DIPP
To start a business in India and set up an industrial unit, investors need to obtain industrial license or file IEM (Industrial Entrepreneurs Memorandum). Through the eBiz initiative launched on 16 August, 2014, Process of applying for IEM has been made online and this service is now available to entrepreneurs on 24x7 basis at the eBiz website, without human interface. This has enabled ease of filing applications and online payment of service charges while also ensuring that no entrepreneur has to come to the Ministry to file his/her application or make payment. For filing of IEM, please refer to the following link: https://www.ebiz.gov.in/industrialentrepreneur-central
Apply for Industrial Licensing to DIPP
Licensing is done under Industries (Development & Regulation) Act 1951. Post 1991 de-licensing, presently only five industries are under compulsory licensing:
- Electronic aerospace and defense equipment
- Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches
- Cigars and cigarettes of tobacco and manufactured tobacco substitutes (Fresh Licenses are not being granted for manufacture of this item on health grounds since 1999)
- Specified hazardous chemicals i.e
- Distillation and brewing of alcoholic drinks
- In addition to above, a non-MSME unit manufacturing items reserved for MSME needs an Industrial License Through the eBiz initiative launched on 16 August, 2014, Process of applying for Industrial License (IL) has been made online and this service is now available to entrepreneurs on 24x7 basis at the eBiz website, without human interface. This has enabled ease of filing applications and online payment of service charges while also ensuring that no entrepreneur has to come to the Ministry to file his/her application or make payment. For filing of IL, please refer to the following link: https://www.ebiz.gov.in/industriallicense
Once the entity has been established, tax related compliance needs to be completed to commence business. Below is the list of registration required at the initial stage:
- obtaining PAN (Permanent Account Number)
- obtaining TAN (Tax Deduction Account Number)
- VAT/CST registration
- Excise Duty registration
- IEC (Importer Exporter Code) registration
- Service Tax registration
All the above compliances can now be completed online, at the following link: https://www.ebiz.gov.in/listofservices
Selection Of Land
Tamil Nadu Industrial Guidance & Export Promotion Bureau (GUIDANCE) is the first contact point for investors for land identification. It provides the necessary information on land availability including infrastructure availability, incentive package etc. as per investors' requirements.
SIPCOT Industrail Parks
Tamil Nadu offers well developed network of industrial parks. Different types of industrial parks have been set up by nodal Government agencies or by joint ventures with collaboration with private players. SIPCOT (State Industries Promotion Corporation of Tamil Nadu Limited) is a State owned Financial and Development Institution which develops industrial complexes by providing basic and comprehensive infrastructure facilities for the industries to set up their units. SIPCOT has so far developed 20 Industrial Complexes in 12 districts.
TIDCO (Tamil Nadu Industrial Development Corporation Limited) is another undertaking of Government. TIDCO facilities investment in large industries and promotes several joint ventures for manufacturing products. TANSIDCO (Tamil Nadu Small Industries Development Corporation Limited) promotes Small Scale industries by developing Industrial estates with infrastructure facilities and provision of work sheds and plots. Further details are available at http://www.sipcot.com/index1.html
Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. Investors can enjoy various tax exemptions and other incentives under SEZ. Units may be set up in SEZ for manufacturing of goods and services with certain conditions.
Consolidated application form enables investors to obtain required facility and registration listed below,
- Setting up of units in Special Economic Zone;
- Annual permission for sub-contracting;
- Allotment of Importer Exporter Code Number;
- Allotment of land/industrial sheds in the Special Economic Zone;
- Water Connection;
- Registration-cum-Membership Certificate;
- Small Scale Industries Registration;
- Registration with Central Pollution Control Board;
- Power connection;
- Building approval plan;
- Sales Tax registration;
- Approval from Inspectorate of factories;
- Pollution control clearance, wherever required;
- Any other approval as may be required from the State Government
Before Purchasing Land, Ensure the following steps are complete:
- Check the encumbrance of the land
- Check the Land use classification
- Check availability of infrastructure like Water, Power, Access roads, manpower, etc
- The District Collector accords permission for drawal of water of less than 1 mgd in consultation with W.R.D., subject to clearance from Pollution Control Board and availabilty of water.
- For industrial use, necessary Government order has to be obtained through the Regional Chief Engineer.
- To draw water of 1 mgd and above from Government sources for industrial/ drinking water use etc.,
- approval of Government is essential. Prior to that approval of the Water utilization Committee/ Technical Committee is required.
Apply to SIPCOT for Land Allotment
SIPCOT Land Allotment from is available at:
- SIPCOTLand Lease Agreement form is available at: http://www.investingintamilnadu.com/india/guide_investor/pdf/SIPCOT_Land_lease_Agreement.doc
If 100% EOu Apply to Devlopment Comminssioner MEPZ
EoU (Export Oriented Unit) scheme provide an internationally competitive duty free environment. An EoU can be set up by any investor manufacturing goods and rendering services, expect for trading activities. EoU unit is required to achieve only positive Net Foreign Exchange (NFE) over a period of 5 years. The following process flow has to be followed for land allotment in a EoU
- Applications to be filed with the Development Commissioner concerned-
- Interview of the promoter by the Approval Committee
- Development commissioner to approve the case by issuing Letter of Permission (LOP)
- Registration –cum-Membership Certificate (RCMC) should be obtained-
- Legal undertaking in the prescribed form to be executed by the applicant
- Green Card will be issued to the unit by the Zone Administration
- The unit has to secure approval for its wiring and electrical plan from the Electrical authorities
- To secure power allocation and wiring approval from the State Electricity Board
- The industrial water supply is undertaken
- In case there are effluents or emissions the unit has to secure approval form the Pollution Control Board Form for registering an EoU is available at: http://www.investingintamilnadu.com/india/guide_investor/pdf/Form_for_registering_100_EOU.pdf
If project falls under Schedule A or Schedule B, of the EAI Notifications 2006 and 2009, Then conduct Environmental
List of projects requiring prior environmental clearance:
Schedule B, Apply to Tamil Nadu Environment Impact Assessment Authority
The Tamil Nadu Pollution Control Board has introduced an online application and tracking mechanism for all pollution control related approvals. For further details, visit www.tnocmms.nic.in/OCMMS
Consent to Establish
- Investors need to apply for Consent to Establish from TNPCB (Tamil Nadu Pollution Control) as per The Water (Prevention and Control of Pollution) Act, 1974 and The Air (Prevention and Control of Pollution) Act, 1981. In case industries fall under 39 categories as prescribed in EIA Notification 2006, industries have to obtain environmental clearance from MoEF (Ministry of Environment and Forest, Government of India) / SEIAA (State Environmental Impact Assessment Authority, Government of Tamil Nadu). TNPCB will issue consent only for establishment to the projects which attracts EIA Notification 2006, only on receipt of environment clearance from MoEF/SEIAA and after satisfying the citing criteria and all other requirements. Further, other regulations such as Hazardous Wastes (Management, Handling & Trans-boundary Movement) Rules 2008 and E-waste Management and handling rules 2011 may be applicable depending on industries.
Apply to guidance Bureau for Single Window Clearance
The State Government realizes the complexity involved in getting clearances / infrastructure support from individual statutory authorities/agencies, as well as the need for different documentation/forms to set up a factory. To avoid such procedural delays, Government of Tamil Nadu has established an effective Single Window System to accord all such pre project clearances at the State Government level. Tamil Nadu Industrial Guidance & Export Promotion Bureau acts as a nodal agency to stream line and coordinate the approval process.
In order to provide a structured clearance and approval mechanism for all types of projects, and to avoid procedural delays, the State Government has constituted an Inter-Departmental Committee chaired by the Industries Secretary to examine requests which are not strictly as per the published policy of the State Government requiring certain relaxations. Based on the discussions at the Committee with all concerned departments, the Government of Tamil Nadu gives final approvals for the project. A Committee chaired by the Chief Secretary, Government of Tamil Nadu has been constituted to monitor the clearances given for all the projects by the various wings of the Government.
The following approvals are covered under the single window process:
- Planning permission from Directorate of Town & Country Planning (DTCP)
- Planning permission from Directorate of Town & Country Planning (DTCP)
- Fire service clearance
- Environmental clearance from Tamil Nadu Pollution Control Board (TNPCB)
- Water Supply from Tamil Nadu Water Supply and Drainage Board (TWAD)
- Power Supply from Tamil Nadu Electricity Board (TNEB)
- Electrical safety certificate from Chief Electrical Inspector (CEI)
- Registration under Factories Act
- Registration under Boilers Act
Govt. of Tamil Nadu has introduced a Common Application Form which need to be filled & filed (Online Application) by investors with Documentation & Clearance Center (DCC) in Guidance Bureau. Copy of this form is also available for downloading.
Online forms, give the user the option to track the status of the application form and will also enable the Guidance Bureau in sharing the information with other departments and get the necessary clearances in a shorter duration. Guidance Bureau will receive the common application form duly filled in from the investors and liaise with different agencies to get speedy clearance. Guidance will place before the SIPB and PAA all such applications received from investors.
for LPC Diesel Petrol Storage Apply for NOC to Districts Collector And Controller Of explosives, Nagpur
Application form for LPG Storage to Controller of Explosives can be accessed at:
- Application form for Petroleum Storage to Controller of Explosives can be accessed at: http://www.investingintamilnadu.com/india/guide_investor/pdf/Form-IX_application_for_Petroleum_Storage_to_Controller_of_Explosives.pdf
In Tamil Nadu, the water and sewer connections are generally provided by the concerned corporations, municipalities, Town Panchayats and Village Panchayats except in Chennai City, where they are provided by Chennai Metro Water Supply and Sewerage Board (CMWSSB). Sewer and Water connection charges can be calculated by the applicant themselves based on the built up area and category of the building as per prescribed in the application form.