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Compliance Required To Start A Plastic Products Manufacturing Business In India


Introduction: Plastic Products Manufacturing Company

Plastic is a material that is used to make several kinds of products such as buckets, cups, containers, vessels, toys, etc. Apart from whole products, plastic is used to build minute parts of products, for example, support knobs for pipes and plastic holders for lights. Even though plastic in recent times has been highly discredited and has posed a threat to the environment, it is being used at a large scale. The reason plastic is advised to be handled safely is because, unlike many items around us, plastic does not decompose easily and it turns into a problem only when plastic is not decomposed correctly. Nevertheless, the Government has recently identified the issue and implemented provisions to protect the environment from the hazards of plastic and its mismanagement. EPR is one of the most successful of all. Therefore, as lucrative as a Plastic Manufacturing Business is, anyone involved in the business, needs to mandatorily obtain prior permissions from respective authorities before starting it. Especially for Plastic and its products manufacturing business. The blog shall further lay down all necessary permissions and licenses required to start a Plastic Product Manufacturing company in India.

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Is a Plastic Product Manufacturing Business Profitable?

As evident as it is, the plastic industry is booming and is being operated on a large scale in every area of the world. Population increase, enhanced disposal schemes, incentives, support from the Government and citizens added with globalization has further enhanced the opportunity for business minds in plastic manufacturing. There is nothing in a sector that does not include plastic. From packaging to delivery, its all made of plastic. Clearly, there is a demand and to meet them, production is necessary. Therefore, establishing a Plastic Product Business might be one of the most profitable businesses today.  

How to Start a Plastic Product Manufacturing Business?

The plastics industry is very diverse. Plastic can be used to manufacture a huge variety of things, including toys, furniture, bags, packaging, chairs, and tables. Before starting the business, it is essential to decide on the product that needs to be want to make first and then conduct detailed market research on it. Next, it is important to decide whether to buy or lease the land you'll need for manufacturing. Manufacturers of raw materials and the equipment to be essential for the business are then considered. 

What Are The Compliances Required For Starting A Plastic Product Manufacturing Business?

  • Factory License

According to the Factory Act of 1948, every factory owner must register their property with the respective Government before starting a business. A factory license is a document that gives the manufacturer permission to engage in manufacturing activity. The Factories Act of 1948 mandates that a plant must obtain approval for its building plan from the labor and employment department before registering a factory. To ensure the safety of the workforce, this Act also mandates the registration and renewal of industrial licenses.

  • Registration of Company

Registering a business in India is one of the most important steps before establishing any process. This step allows the company to be recognized as per law and is classified as a separate legal entity. The Companies Act and the Ministry of Corporate Affairs lay down provisions for the same. A business can be registered as an LLP, Proprietorship, Private Limited Company, or Partnerships.

  • MSME Registration

An MSME (Micro Small Medium Enterprises) Registration registers small-scale businesses in India and is thus eligible for all associated Government benefits. Obtaining such registration is not mandatory however poses several advantages. 

  • GST Registration

All kinds of organizations and people must register for GST if their combined yearly revenue exceeds Rs. 20 lakhs in the majority of states and Rs. 10 lakhs in states that fall under a special category. In addition, regardless of turnover, everyone who supplies items for intra-state supply must register for GST. Other criteria have also been made available under the GST Act, setting additional requirements for GST registration in addition to the ones listed above. All entrepreneurs should be aware of the requirements and register for GST within 30 days of opening their business.

  • Shop Establishment Certificate

The State Government Grants Shop and Establishment Act licenses or registrations, and this differs between States. Therefore, the appropriate State Government official must be contacted in order to get a Shop and Establishment Act License based on the State in which the business is located. Within 30 days of opening for business, every store and institution in India must register under the Shop and Establishment Act. This registration Certificate also acts as evidence of a business location when applying for further licenses and registrations.

  • Extended Producer Responsibility (EPR) Authorization

One of the most important compliance to be followed is to obtain an EPR Authorization. The Central Pollution Control Board (CPCB) is authorized to grant such authorization. The idea of EPR is to shift the responsibility of Plastic along with its correct disposal so that it does not pose a threat to the environment to the manufacturer/producer. Reuse, buyback, or recycling are all examples of extended producer responsibility. The manufacturer may alternatively choose to assign this duty to a third party for whose used-product management the producer will pay. EPR is mandatory for all Producers, Importers, and Brand Owners (PIBOs) and they must obtain an EPR Certificate before commencing their business.

  • Import- Export (IEC) 

In case the business involves the import or export of Plastic Products, an IEC is mandatory. Granted by the Directorate General of Foreign Trade (DGFT), a key company identifying the number required for exporting from or importing into India is an Importer-Exporter Code (IEC). Unless specifically exempted, no person may export or import without first obtaining an IEC.

  • Consent to Establish (CTE) and Consent to Operate (CTO)

Obtained from the respective State Pollution Control Board (SPCB), businesses need to hold a CTE and a CTO. A CTE is a mandatory Consent from the SPCB to establish an organization stating that the company has followed all environmental protocols and is safe to be built. A CTO on the other hand is obtained after the establishment of a company. In order to guarantee that their industry upholds standards regarding operations, manufacturers are needed to obtain this consent. All industries are required to obtain this permission in order to operate.

  • Certificate for Compostable Plastics bags

Before manufacturing or selling compostable carry bags, manufacturers or sellers are required by PWM Rules, 2016, Rule 4(h) (Conditions), to obtain a certificate from the Central Pollution Control Board. Compostable Plastic refers to that plastic which plastic that undergoes degradation by biological processes during composting to yield CO2, water, inorganic compounds, and biomass at a rate consistent with other known compostable materials, excluding conventional Petro-based plastics, and does not leave visible, distinguishable, or toxic residue. The certificate required by Rule 4(h) of the PWM Rules 2016 as amended must be issued within seven working days of the application's submission if it is complete in every way. A copy of the certificate must be given to the relevant SPCB or PCC.

  • Certificate for Biodegradable Plastic bags

The Central Pollution Control Board must grant a certificate to producers or sellers of biodegradable plastic carry bags or products before Manufacturing or selling biodegradable plastic carry bags or products, according to Rule 4(h) (Conditions) of PWM Rules, 2016. 

  • BIS Certificate of Plastic Products

The Government of India no longer allows the production, import, stocking, distribution, sale, or use of a number of Single-Use Plastics (SUPs). The Protocols for Compostable and Biodegradable Plastic Materials, according to the rule, biodegradable plastics must adhere to the relevant standard created by the Bureau of Indian Standards. The processes for evaluating the biodegradability of plastics, the detrimental impacts of the biomass produced on terrestrial plant growth, and the controlled heavy metals present in the biomass are all outlined in this provisional standard. This standard solely applies to the evaluation of plastics' biodegradability in aqueous, composting, soil, and municipal solid waste mediums. Only the soil medium, municipal solid waste medium, and composting medium are applicable in this standard for evaluating the biodegradability of plastics.

  • Certificate of ECOMARK

An ECOMARK is a certification mark given by the Bureau of Indian Standards to goods meeting a set of requirements intended to have little impact on the environment. A list of the essential ingredients, listed in decreasing order of quantity present and given as a percentage of the total, must be visible on the product. The Bureau of Indian Standards will specify the list of such components.

What is the Penalty for Non-compliance?

As each protocol of compliance is governed by separate laws, upon the violation or non-adherence matter, the respective penalty for not complying shall be governed. However, following are a few- 

  • No BIS Mark: Fine up to 2 Lakhs, or imprisonment, or both.
  • No CTE/CTO: Fine up to ten thousand rupees or imprisonment for up to 3 months.
  • No IEC: Fine up to One thousand Rupees
  • GST: 10% of the tax payable or Rs. 10,000, whichever is higher, as a penalty.

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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