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Legal and Statutory Compliance Required to Start Stone, Clay, and Cement Products Manufacturing Business in India


Introduction: Stone, Clay, and Cement Products

With the growth of India’s economy comes the development of the construction industry, which is expected to touch USD 1.4 trillion by the end of 2025. Now it is obvious that as the construction industry grows, the demand for stone, clay, and cement or we should simply say the construction and building materials also rises. Even though the effects of the Covid pandemic slowed down the construction material industry for a while, the ongoing recovery has got it back on the right track again. And, we are not saying this out of the air as you can see revenue from the construction material industry, which was USD 69.77 billion in 2020, has been growing since then with an impressive yearly compounded growth rate of 11.4 percent and can even amount to a whopping sum of USD 119.63 billion.

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Seeing these positive trends, anyone can easily start a stone, clay, and cement products manufacturing business as an opportunity to earn high returns on his investment and efforts. If you agree, then reading this article can prove to be very beneficial for you. We have discussed the factors one should surely consider while starting a construction material manufacturing business in India and the must compliances associated with it, that too in a detailed manner. 

Strategies to Start Stone, Clay, and Cement Products Manufacturing Business

  • Location

Locations of manufacturing facilities matter a lot for every business to be successful and this becomes truer for the building material industry where the availability of raw materials and the cost of their transportation act as major deciding factors. That’s the reason we see manufacturers of construction materials including stone, clay, and cement prefer setting up their units in suburban and rural areas. Such areas also provide them with enough space where their vehicles such as mini Lorries, and pick-up trucks can easily move without any inconvenience. 

  • Secure Capital

Often people intending to start their entrepreneurship journey begin with hundreds of things to work on but forget to consider one basic need of any business ‘Investment.’ This becomes more significant when it comes to building material manufacturing business because it can take a lot of capital for the entire setup. Therefore, make sure you get all the required investment first before moving on to other processes. Here, you can approach potential angel investors with your business plans or visit banks to apply for a loan.  

  • Skilled and Unskilled Manpower

Manufacturing of construction materials demands the use of laborers at scale and the reason for this is the involvement of several processes, including loading, unloading, and filtering of materials.   

  • Type of Products

Industry associated with building materials for construction provides you with multiple product options you can deal in. It includes cement, stone, clay, bricks, and many others. At the initial stage, it’s preferable if you select one among them as your expert area and start building your business around it. As the growth of your business happens over time, you can include the remaining materials accordingly. 

  • Targeted Customer Base

Often people start their businesses on a small scale and if you’re doing the same, then it would be a smart choice on your part to first connect with the house and factory owners instead of approaching big construction companies. The latter may require you to invest a massive chunk of capital and expand your operations, and both of these can prove to be risky at the initial stage. You might have heard of the phrase ‘Slow and steady wins the race’ and the same applies to this industry as well. Indeed, you can start with building a stable customer base and then move on to big players eventually.    

Key Compliances for Stone, Clay, and Cement Products Manufacturing Business 

  • Business Registration and Certificate of Incorporation

Every business, before commencing its operations, is required to register itself with the relevant government authorities as per the requirements prescribed by the Ministry of Corporate Affairs. There are three primary business structures it can opt for, PLC (Private Limited Company), LLP (Limited Liability Partnership), or OPC (One Person Company). Besides this, it is also required to obtain a Certificate of Incorporation under the Company Act of 2013, which will allow it to run its business activities as a distinct and legal entity. 

  • GST Registration

All the businesses whose annual turnover exceeds Rs. 40 lakhs (Rs. 20 lakhs for businesses in some special category state) must register for the GST as a normal taxable entity. Upon the GST registration, a unique 15-digit GSTIN number will be allotted to a business that allows it to collect taxes on behalf of the government and claim input tax credit to reduce its tax liability. 

  • Trade License

Next on the list is to obtain a trade license from the state Municipal Corporation. It will act as a permit for you to commence your stone, clay, and cement products manufacturing business in a particular area or location. Besides this, it will also ensure that every business activity you do adheres to the safety standards prescribed under the regulations and norms, hence securing the well-being of nearby residing people from any health hazards.

  • Udyam Registration

Any person who intends to establish a micro, small, or medium enterprise (MSME) in India can apply for Udyam registration, which can open the door to aid from government schemes and subsidies for it. Udyam registration has a lot of benefits, which include loans at less interest rates that too without any collateral, certain tax exemptions, electricity at subsidized rates, and assistance in marketing and technology upgradation. 

  • Trademark Registration

Starting a construction or business material business doesn’t require trademark registration but what’s the harm in securing intellectual property rights in the event of rising brand piracy cases? It can help you ensure protection for your brand identity, logos, taglines, etc.    

  • ISO Certification

ISO certification acts as an authorization to prove compliance with the standards prescribed by ISO (International Organization for Standardization). It ensures the products and services offered by a business entity are following the required standards in terms of quality, safety, and efficiency. 

  • Import Export Code

Issued by DGFT (Directorate General of Foreign Trade), Import Export Code is a unique ten-digit alphanumeric code mandatory to obtain for every Indian business, that indulges in the import or export of goods. Without this code, the transactions of products with any foreign country are not permissible and can result in legal consequences. 

  • Performance Appraisal Certification

Launched by the Ministry of Urban Development and Poverty Alleviation, the Performance Appraisal Certification scheme urges the building material industry to adopt sustainable practices. It includes the use of waste materials, energy conservation, cost optimization, measures for disaster-resistant construction techniques, etc. 


Given the current trends in the Indian economy, the stone, clay, and cement products manufacturing business promises a very bright present and future for the people of the country. If you are also interested in starting one but don’t know how to obtain the required compliances, feel free to contact Corpseed ITES, which is India’s leading business legal, tech & consulting service provider and has been serving thousands of companies for years.

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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