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Licenses required to Start A Heavy Machine Equipment Manufacturing Company in India


Introduction: Heavy Machine Equipment Manufacturing

Construction equipment refers to heavy-duty vehicles made expressly for carrying out construction tasks, which typically include earthwork operations. They are also referred to as heavy trucks, heavy machinery, heavy vehicles, heavy hydraulics, heavy engineering tools, and heavy building tools. Rapid urbanization, population expansion, increased government infrastructure spending, and the influx of foreign direct investment are the main drivers of the nation's requirement for construction equipment. In terms of equipment types, the earthmoving equipment industries - which include loaders, excavators, and cranes - rule the construction equipment industry. Construction, manufacturing, and production processes all demand sophisticated machinery and highly skilled labour. Making these large, powerful machines is also a skill in itself.

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What is Heavy Machine Equipment?

Heavy duty vehicles especially created to carry out construction duties, most typically including earthwork operations or other substantial construction chores, are referred to as heavy equipment, heavy machinery, or Earthmovers. The five equipment systems that make up heavy machinery are typically the implement, traction, structural, power train, and control/information systems. The regulations pertaining to heavy machinery are handled by the Ministry of Heavy Industries. The Department has reorganized the Earthmoving, Construction and Mining, and Textile Machinery Development Councils. These sectors are no longer subject to license requirements, and technical collaboration and FDI up to 100% via automatic route are both openly allowed. Machines, both new and used, may be freely imported. India has signed up for several FTAs that have drastically cut duty rates. Lower duty rates are also feasible under the Project Imports facility. Exports are promoted by allowing duty-free imports of components, subassemblies, consumables, raw materials, and other goods under various DGFT initiatives.

Why to Start a Heavy Machine Equipment Business?

The Make in India initiative and the coal blocks being accessible for mining both increase the likelihood that the heavy equipment market will continue its rising trajectory. There will undoubtedly be positive effects on the earth moving industry as a result of the infrastructure boom for creating IT parks, highways, airports, new smart cities, and the increased demand for urban infrastructure. In order to meet the growing demand, both the quantity of machines and the skill set required to operate them will increase. There will be more demand for both new and old machines as a result of the entry of new rivals onto the market. Additionally, the equipment manufacturing industry in India is prepared to grow to meet the rising demand as postponed projects are restarted and new ones are awarded.

Read Our Blog: Licenses Required to Start a Heavy Machine Manufacturing Company in India

What Are The Different Types Of Heavy Machine Equipment?

  • Dye, Moulds & Tools Industry

The Indian tool room industry is made up of commercial tool makers who are involved in the design, development, and production of tooling. A variety of government toolrooms and training facilities are also in use in addition to commercial tool makers. The main tool room sites are Mumbai, Bengaluru, Chennai, Pune, Hyderabad, and Delhi NCR.

  • Textile Machinery Industry

The majority of the companies in the country producing textile machinery are small and medium-sized enterprises. Weaving, spinning, winding, processing, and synthetic fiber machinery are a few examples of important textile machinery.

  • Machine Tools Industry

The machine tool industry is referred to as the mother industry since it provides the machinery for the whole industrial sector. Small and medium-sized enterprises (SMEs) make up the majority of machine tool manufacturers, and just a handful achieve yearly sales of between Rs. 300 and Rs. 500 crores. The types of machine tools that are currently produced include machines for general or specific uses, common CNC machines, gear cutting, grinding, medium-sized machines, electrical discharge machining (EDM), presses, press brakes, pipe bending, rolling, and bending machines, among others.

  • Plastic Processing Machinery Industry

A few pieces of produced equipment include extrusion moulding, blow moulding, injection moulding, and various types of plastic machinery. The product technologies are on par with those of the leading international brands. India is home to some of the best manufacturers and technologies in the world, either as fully owned subsidiaries or as a result of patent licensing arrangements.

  • Earthmoving, Construction and Mining Equipment

The Indian Earthmoving, Construction and Mining Machinery is a manufacturer of backhoe loaders, compactors, mobile cranes, pavers, batching plants, crawler cranes, transit mixers, concrete pumps, tower cranes, hydraulic excavators, dumpers, mining shovels, walking draglines, dozers, wheel loaders, graders, drilling equipment, tunneling machinery, etc.

  • Printing Machinery

The vast majority of businesses that manufacture printing equipment are small and medium-sized enterprises. The major printing equipment produced locally includes web offset printing machines, UV coating curing machines, flexographic printing machines, screen printing machines, wire stitching machines, lamination machines, etc.

  • Food Processing Machinery

Most companies that create equipment for food processing are small and medium-sized firms. Some of the main food processing equipment produced in India includes peelers, sorters, graders, pulpers, grinders, mixers, cookers, fryers, dryers, pulverizers, soy milk machines, food grain and coffee millers, bakery equipment, forming-filling-sealing machines, milking and dairy machines, juicing line, etc.

What Are The Important Licenses required?

  • Incorporation of Company

According to the Companies Act of 1872 and the laws governing companies and their operations in India, a company must be formed. It is possible to form a partnership or an LLP, after which the entity can be registered. A company can become a distinct legal body with its own identity and become eligible for a number of benefits once it is registered.

  • Registration under GST

All sorts of firms and individuals must register for GST if their combined yearly revenue exceeds Rs. 20 lakhs in the majority of states and Rs. 10 lakhs in those that fall under a special category. In addition, whomever offers items for intrastate supply must register for GST regardless of revenue. Additional criteria have been made available under the GST Act, outlining additional standards for GST registration in addition to the previously specified criteria. Every entrepreneur should be aware of the rules and register for GST within 30 days of beginning their firm.

  • Udyog Aadhar Registration (MSME)

The registration process is also provided, along with information on the investment process and the suitability of manufacturing equipment. All Medium, Small, and Micro industries engaged in the business of manufacturing or providing any service must, nevertheless, meet the fundamental requirements for such registration.

  • Factory License

The Factories Act of 1948 mandates that any industry with a manufacturing facility obtain a factory license. To safeguard employee safety and be eligible for registration and renewal incentives, a factory must have a license. A factory license must be obtained from a state agency if the company has more than 10 employees; if it has less than 10, the local authority can give the required license.

  • Registration under the Ministry of Corporate Affairs (MCA)

The process is crucial when registering a factory or corporation in India. The SPICe+ form must be filled out and uploaded on the MCA portal. In order to fill out the SPICe+ form and send any necessary supporting files, the company's director must first register on the MCA portal. After registration, the director can log in and use the MCA portal's features, such as completing electronic forms and getting access to public data.


Opportunities for heavy equipment operators will be numerous and expanding through 2022 and the following several years. Operators of heavy machinery are the backbone of the construction sector. Heavy equipment operators are well-positioned to earn a good living in a stable work market since they can perform a variety of positions and use a wide range of equipment.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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A Post Graduate in the field of Corporate and Commercial Laws. I  have worked as a freelance content writer for several Legal topics for over 5 years. I aspire to learn and grow in this field along with being able to portray my Legal skill...

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