Which License (s) is required for Manufacturing Business?

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Which License (s) is required for Manufacturing Business?

Manufacturing License

Every Business interested in manufacturing a pre-packaged commodity or a calibrated instrument must obtain the requisite License for Manufacturing from the Department of Legal Metrology. The License for Manufacturing comes in a dual form: Manufacturer and Packer. But this article will detail the requisite legal pre-conditions for the application for a Manufacturing License and the post-registration compliances of every registered Manufacturer as per the LMPC norms.

Legal Requirements for starting a Manufacturing Business in India 

The applicant must file the manufacturing license application in the prescribed LM-1 form. In addition, the requisite documents must accompany it. But before filing the license application, the applicant must comply with the Legal Requirements for filing the Manufacturing License:

Proof of Manufacturing Facility

The applicant manufacturer must have physical possession of the manufacturing facility. For such purpose, they must provide any of the following details as proof of address:

• Latest Rent Receipt
• House Tax Receipt
• Sale Deed
• No Objection Certificate, in case the premise is rented

Minimum Space required for smooth & proper working

Every Manufacturing Unit must be appropriate. The premises must be established on the ground level rather than any of the storeyed buildings. The facility can be in any of the following vicinity:

• Multi-storeyed Commercial Complexes
• Flatted Factories of Industries Plants
• Industrial Estates
• DDA/DSIDC Flatted Factories
• Local Government Factories

But the rightness of premises will be assessed by the Licensing Authority before the issue of the Manufacturing License.

Manufacturing Facility Equipment & Machinery

Every manufacturing applicant must maintain the following at its designated plant:

• Equipment for Manufacturing the concerned items
• Tools for Manufacturing the concerned items
• Hardness Testing Equipment
• Platform Machines
• Weighbridges
• Proof of workshop tools attainment
• Testing Facilities for the manufactured products

Requisite Firm Documents

If the applicant is not a Proprietorship, then the applicant must submit the following documents as per the nature of their corporate structure:

Partnership Firm

In the case of a Partnership Firm, Partnership Deed attested by any of the following entities:

• Notary
• Oath Commissioner
• Class I Magistrate

Company Registration 

In the case of a Limited Company, Memorandum and Articles of Association approved by the following entities:

• Registrar of Companies
• Ministry of Company Affairs
• Government of India
• Incorporation Certificate

Site Plan

The Applicant Manufacturer must provide a copy of the technical literature detailing the specifications and design of the to-be-manufactured products.

Miscellaneous

• Business Experience Certificate
• Financial Statement of the Company
• Trademark Registration Certificate of the Manufacturing Certificate License

The applicant must submit proof of sanctioned load required for the proper functioning of the Manufacturing Facility.

Compliance requirements for Manufacturing Companies

We have enlisted some of the following compliance under the Legal Metrology Act for a registered Manufacturer:

Registration with LMD

Every Manufacturer who manufactures a commodity for distribution, sale, or delivery must get the requisite License for Manufacturing under the Legal Metrology Packaged Commodities Rules.

Verification & Stamping

As one of the important compliance under Legal Metrology, the LMD does not permit the use or sale of any measuring instrument without stamping & verification of the product. Therefore, any person using any weights and measuring instrument must get the requisite stamping & verification from the Inspecting Authority.

Here, Re-verification of the facility is also mandatory for the continuous use of measuring instruments for transactions. Also, the immovable measuring instrument must be stamped and verified at its location.

Record & Register Maintenance 

Every Manufacturer must maintain proper records & registers of the weights & measures manufactured at their facility. In addition, every Licensed Manufacturer must submit periodic reports to the Controller of Legal Metrology. Here, reporting timelines and their requirements vary from state to state.

Instrument Usage 

Every Business uses standards of weights & measures. Each of them comprises the following units:

• Length
• Temperature
• Volume
• Unit
• Mass
• Capacity
• Area

The Instrument Usage by a standard unit of weight, measure, and numeration is essential for the following:

• Issuing cash memos, price lists, and invoices
• Determining the net quantity of the manufactured commodity
• Quote manufactured products’ price
• Publish an advertisement for the commodity

Mandatory Declarations on the Manufactured Commodity

The declaration is one of the vital components of compliance filing as per the Legal Metrology directives. It obligates the Manufacturer to pack, sell, deliver, offer, manufacture, expose, or possess a commodity in its standard form for sale. The Manufacturer must make the mandatory declarations on every package to be circulated within the country. The Manufacturer must compulsorily put the following declarations on its packages:

• Country of Origin
• Maximum Retail Price
• Name of the Manufacturer
• Address of the Manufacturer
• Dimension of the Product
• Date of Manufacturing
• Date of Expiry
• Local Name of the commodity
• Net quantity of the package

License for Manufacturing

The applicant must apply with the prospective Name, address of manufacturing premises, and commodity name, as well as the requisite fee. The regulations can vary from state to state. Every Manufacturer must get a license from the Controller of Legal Metrology.

To know more, connect with the Legal Metrology experts at Registrationwala.

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