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/