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Licenses Required to Start a Heavy Machine Manufacturing Company in India


Introduction: Heavy Machine

Heavy-duty vehicles specifically created for carrying out construction activities, most usually including earthwork operations, are referred to as construction equipment. They are also known as heavy trucks, heavy machinery, heavy vehicles, heavy hydraulics, heavy engineering equipment, and heavy construction equipment. The country's need for construction equipment is being driven mostly by rapid urbanization, population growth, rising government infrastructure spending, and the entrance of foreign direct investment. The earthmoving equipment sectors, including loaders, excavators, and cranes, dominate the construction equipment market in terms of equipment types.

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The essential part during the process of production, manufacturing, or construction requires highly skilled and modern equipment. The manufacturing of these heavy machines is also one part of a skill. 

What are Heavy Machines?

The Ministry of Heavy Industries deals with the provisions related to heavy equipment. Earthmoving, Construction and Mining Machines, and Textile Machinery Development Councils have all been reformed by the Department. These industries no longer require licenses, and technology collaboration as well as FDI up to 100% via automatic route are both freely permitted. Both new and used machinery may be freely imported. India has enrolled in a number of FTAs with considerably reduced duty rates. Under the Project Imports facility, lower duty rates are also possible. By permitting duty-free imports of raw materials, consumables, components, and subassemblies under various DGFT programs, exports are encouraged.

Why to Start a Heavy Machine Business?

With the coal blocks becoming available for mining and the Make in India push, there is a good chance that the heavy equipment industry will resume its upward trend. The infrastructure boom for building IT parks, motorways, airports, and new smart cities, and the rising demand for urban infrastructure is sure to have a favorable impact on the earth-moving business as the demand for the equipment will rise. The number of machines and the skill set needed to run them will expand in response to the rising demand. The introduction of new competitors to the market will increase demand for both new and used machines. Additionally, with delayed projects restarting and new ones being awarded, the equipment manufacturing market in India is poised to expand to meet the increased demand.

What Are The Different Types Of Heavy Equipment?

  • Machine Tools Industry

Since it provides the machinery for the whole manufacturing sector, the machine tool industry is regarded as the mother industry. The majority of machine tool makers are small and medium-sized businesses (SMEs), and a select few have annual sales of between Rs. 300 and Rs. 500 crores. Machines for general or specific purposes, common CNC machines, gear cutting, grinding, medium-sized machines, electrical discharge machining (EDM), presses, press brakes, pipe bending, rolling, and bending machines, among other varieties, are the sorts of machine tools currently produced.

  • Textile Machinery Industry

Small and medium manufacturers make up the majority of the businesses producing textile machinery in the nation. Important textile machinery includes weaving, spinning, and winding, processing, and synthetic fiber equipment, among others.

  • Plastic Processing Machinery Industry

Injection molding, blow molding, extrusion molding, and other types of plastic machinery are a few pieces of equipment manufactured. Product technologies are comparable to those of the top global brands. The top technologies and manufacturers in the world have manufacturing facilities in India, either as wholly owned subsidiaries or through agreements to license their innovations.

  • Dye, Moulds & Tools Industry

Commercial tool makers involved in the design, development, and production of tooling in India make up the Indian tool room industry. Along with commercial tool manufacturers, a number of government toolrooms and training facilities are also in operation. Mumbai, Bengaluru, Chennai, Pune, Hyderabad, and Delhi NCR are the principal tool room locations.

  • Earthmoving, Construction, and Mining Equipment

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 apparatus, tunneling machinery, etc. are all produced by the Indian Earthmoving, Construction and Mining Machinery.

  • Printing Machinery

Small and medium-sized businesses make up the majority of the businesses that produce printing machinery. Web offset printing machines, UV coating curing machines, flexographic printing machines, screen printing machines, wire stitching machines, lamination machines, etc. are the main printing equipment produced locally.

  • Food Processing Machinery

Small and medium manufacturers make up the majority of the businesses that produce food processing equipment. 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. are some of the major food processing machinery manufactured in India.

What Are The Important Licenses Required?

  • Registration of Company 

Your company must be registered under the Companies Act of 1872 in accordance with the rules that govern corporations and how they operate in India. A partnership or an LLP can be set up, and then that entity can be registered. When a corporation is registered, it can become a separate legal entity with its own identity and become qualified for a range of benefits.

  • 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

An industry that has established a manufacturing operation is required under the Factories Act of 1948 to get a factory license. A factory license is necessary in order to protect employee safety and to receive registration and renewal incentives. If the company has fewer than 10 employees, the local authority can grant the necessary license; however, if the company has more than 10 employees, a factory license must be obtained from a state agency.

  • Registration under the Ministry of Corporate Affairs (MCA)

This step is essential during registering a company/factory in India. On the MCA portal, the SPICe+ form must be completed and submitted. The director of the company must register on the MCA portal in order to complete the SPICe+ form and submit supporting documentation. The director can log in and utilize the MCA portal services, including submitting electronic forms and accessing public documents, after registering.

What Are The Documents Required to Start a Business?

  • List of Raw Materials
  • Manufacturing Process
  • Process Description
  • Process Flow Diagram
  • An Import-Export Code (in case the business involves the import or export of products or parts)
  • International Standard for Operation (ISO) Certificate
  • An industrial allotment Certificate
  • Relevant Tax Certificates
  • An Environment Clearance Certificate 
  • Consent for the use of generators/electricity.  
  • GST Certificate
  • A Fire License or NOC
  • A manufacturing layout blueprint
  • A Certificate of Incorporation
  • A factory building stability Certificate
  • An ISI label (if applicable)
  • A complete factory Layout
  • Details of Plant & Machinery 
  • Suppliers of Raw Materials
  • Suppliers of Plant & Machinery
  • Plant Location Factors
  • Land & building Registration Documents
  • Power and Water Documents
  • Details of Labourers
  • Financials of the Manufacturing Project
  • License and application Certificate

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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