Manufacturing has the longest licence list of any business type – but half the items are conditional, and knowing your pollution category and worker count up front tells you exactly which apply. White-category units need no pollution consent at all; small units below factory thresholds skip the factory licence. Here is the decision map.
Updated July 2026. Registrations and fees current as of July 2026 (major recent changes are dated in-line). Rules change by notification – use the official links to confirm before applying.
Registrations and licences you need
| Registration / licence | Applies | Government fee | Authority / portal | Validity |
|---|---|---|---|---|
| Factory licence Baseline 10+ workers with power / 20+ without; several states already at 20/40 and the OSH Code (in force 21-Nov-2025) moves the definition to 20/40 as state rules roll out. Below threshold = Shops and Establishment instead. | IF APPLICABLE | By horsepower / workers (state-wise) | State Factories Directorate | Annual / multi-year |
| Pollution consents (CTE + CTO) Category by CPCB pollution index: Red / Orange / Green / WHITE – White units (index up to 25, e.g. assembly, tailoring) need NO consent, only an intimation. Check your product on the CPCB category list first. | IF APPLICABLE | By capital investment (state-wise) | State Pollution Control Board | CTO ~5 yrs Orange / ~10 yrs Green |
| BIS certification (ISI / CRS) Only where a Quality Control Order covers your product – but QCOs are expanding fast (steel, toys, electronics CRS; machinery under the Omnibus Technical Regulation from 1-Sep-2026). Check the BIS QCO list for your product before setting up. | IF APPLICABLE | Product-wise | BIS bis.gov.in | Licence-based |
| EPR – plastic packaging Selling your own-brand goods in plastic packaging makes you a Brand Owner under the Plastic Waste Rules – registration on the CPCB portal applies (micro/small enterprises are exempt from EPR targets; confirm the registration nuance for your size). | IF APPLICABLE | Registration-based | CPCB eprplastic.cpcb.gov.in | Annual returns |
| Fire NOC + DISCOM load sanction Building fire clearance and sanctioned electrical load are prerequisites in practice for the factory licence and consents. | MANDATORY | State / DISCOM-wise | State fire services / DISCOM | Periodic |
| GST registration Threshold Rs 40 lakh for goods (Rs 20/10 lakh in special-category states). ANY inter-state sale of goods makes registration compulsory regardless of turnover (s.24). Simplified 3-day auto-approval scheme live since 1-Nov-2025. | IF APPLICABLE | Nil | GST portal gst.gov.in | Ongoing (returns apply) |
| Udyam (MSME) registration Not legally compulsory but practically essential: cheaper trademark and expedited fees, priority-sector lending, delayed-payment protection under MSMED Act. | MANDATORY | Free | Ministry of MSME udyamregistration.gov.in | Lifetime |
| EPF and ESI EPF at 20+ employees, ESI at 10+ (wages up to Rs 21,000). Labour Codes in force since 21-Nov-2025; state rules rolling out. | IF APPLICABLE | Free registration | EPFO / ESIC (Shram Suvidha) shramsuvidha.gov.in | Ongoing monthly compliance |
| CLRA registration If you engage contract labour through contractors (20 contract workers central baseline; thresholds shifting under the Labour Codes). | IF APPLICABLE | State-wise | State labour department | Ongoing |
Factory thresholds, PCB fees, fire norms and CLRA thresholds all vary by state, and the Labour Codes transition (in force 21-Nov-2025, state rules rolling out) is actively moving several of them. Treat the numbers above as the central baseline and verify your state before committing to a site.
The right order to do it in
- Before anything: check THREE lists for your product – the CPCB pollution category (decides consents), the BIS QCO list (decides mandatory certification), and your worker plan (decides factory licence). These three answers shape the whole timeline.
- Set up the entity and Udyam registration. Choose your entity first: a proprietorship needs no central registration (PAN + bank account, with GST/Udyam/Shops-and-Establishment serving as business proof); a partnership needs a deed (register with the state Registrar of Firms – an unregistered firm cannot sue); an LLP files FiLLiP and a company files SPICe+ on mca.gov.in – the MCA fee for SPICe+ is NIL up to Rs 15 lakh authorised capital (state stamp duty extra).
- Apply for Consent to Establish BEFORE construction (skip if White category); get the DISCOM load sanction and building fire clearance in parallel.
- If a QCO covers the product, start the BIS process early – factory inspection and testing make it the longest-lead licence.
- Before production: factory licence (if over threshold), Consent to Operate, GST registration.
- On the people side: EPF at 20 employees, ESI at 10, CLRA if using contractors – and EPR registration if your branded goods ship in plastic packaging.
Documents to keep ready
Your NIC code: the Division follows your product – 25 for metal products (25999, 25920), 22 for plastics (22209), 31 for furniture (31001), 14 for garments (14101). Search your exact product in our finder. Open the NIC Code Finder to search and copy the exact code.
Frequently asked questions
Does every manufacturing unit need a pollution consent?
No – White-category industries (pollution index up to 25: assembly units, tailoring, many electronics assemblies) need no Consent to Establish or Operate, only an intimation to the state board. Green and Orange categories need both consents (10-year and roughly 5-year cycles), and Red categories face the strictest scrutiny. Finding your product on the CPCB categorisation list is step one.
When does a unit need a factory licence?
At the central baseline, 10 or more workers with power (20 without) – but Gujarat, Karnataka, Haryana, MP, Rajasthan and several other states have already doubled the thresholds to 20/40, and the OSH Code adopts 20/40 nationally as state rules operationalise. Below the threshold you register under the Shops and Establishment Act instead.
How do I know if my product needs BIS certification?
Check the BIS list of Quality Control Orders – certification is mandatory only for covered products, but coverage is expanding quickly: most steel grades, toys (migrating to the 2025 standards by March 2027), electronics under CRS, and machinery under the Omnibus Technical Regulation from 1 September 2026. If covered, budget months for the licence – factory inspection and product testing are involved.
What is EPR and does a small manufacturer need it?
Extended Producer Responsibility for plastic packaging: producers, importers and brand owners must register on the CPCB portal and meet recycling targets. Selling your own-brand goods in plastic packaging makes you a brand owner – though micro and small enterprises are exempt from the EPR targets. If you only manufacture for other brands, the obligation sits with them.
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This page lists the registrations COMMONLY required for this type of business – sector-, product- and state-specific requirements may also apply, and thresholds change by notification. It is general information, not professional advice; confirm your specific case with the official portals linked above or a professional before acting. See our full disclaimer.