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APPROVAL
GETTING APPROVALS
Every MSME unit has to comply with various regulations in force.
These include regulatory, taxation, environmental and
certain product specific clearances. This section looks
into the methodology of obtaining these approvals and
clearances.
EXEMPTION FROM COMPULSORY
Licensing in the Industries sector
is governed by the licensing exemption notification
issued by Govt. of India in July 25 1991 under the
Industries (Development and Regulation) Act, 1951.
In MSME, there are virtually no licensing
restrictions. No industrial license is required except
in case of 15 product groups included in compulsory
licensing (these products groups mainly cover products
that can only be made in large sector).
But if a small scale unit employs less than 50/100 workers with/without
power then it would not require a license from the Govt. of India even for
the 15 product groups covered in licensing under Schedule II of the
notification.
Subject to this, an entrepreneur
can set up a MSME unit anywhere in the country without
any restriction. The units are, of course, subject to
the locational/land use and zoning restrictions in force
under the land laws.
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