• Manufacture & Sell Electrical Appliances in India

What are the certifications and regulations to follow to design, develop, manufacture and sell electrical appliances (for example, LED lamps) in India? What is the right website to look up other terms and conditions? What are the most common mistakes by which, electrical manufacturers come under lawsuits? Also, please mention, if you do have the expertise to support me with setting up a startup company in this domain legally.
Asked 2 years ago in Business Law

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10 Answers

1) Pollution Control Board NOC (No Objection Certificate) is essential as the LED manufacturing industry causes pollution and uses certain hazardous materials that are not friendly to the environment.

2)Certification from the Bureau of Energy Efficiency as to how much energy the plant consumes is also required for manufacturing LED bulbs.

 

3)The business can be started as a proprietorship, partnership, LLP or Limited Liability Partnership, an LLC,  or a Private Limited Company.

 

4) GST registration is required

 

5) you would need to register your trade mark 

Ajay Sethi
Advocate, Mumbai
96962 Answers
7825 Consultations

You need to obtain permission from Reserve Bank of India under Regulation 5 of Foreign Exchange Management (Establishment In India of Branch Or office Or Other Place of Business) Regulations, 2000 to establish branch/liaison office to coordinate with Indian authorities first. The application is to made in FNC 1. Form can be downloaded online.

Ravi Shinde
Advocate, Hyderabad
4195 Answers
42 Consultations

The restriction is applicable to person residing out of India (NRI). Such person is required to submit the FNC Form.

Ravi Shinde
Advocate, Hyderabad
4195 Answers
42 Consultations

primary legal procedures in India:

  • Create a LLC or Corporation
  • Register Your Business Name
  • Apply for a Federal Tax ID Number
  • Determine If You Need a State Tax ID Number
  • Obtain Business Permits and Licenses
  • Protect Your Business with Insurance
  • Open a Business Bank Account
  • Consult the Professionals

Besides, since you intend to start a manufacturing unit in electrical items you may be required to obtain NOC from PCB, Bureau of Energy under Energy Act etc 

You can consult a professional on all such further issues. 

T Kalaiselvan
Advocate, Vellore
87163 Answers
2341 Consultations

There is no necessity for RBI permission for the start up business by Indians. 

Limited Liability Company – Registration is needed with the Ministry of  Corporate Affairs under the LLP Act 2008

Partnership – The registration is optional. Minimum two persons are needed to start it and it isn’t recognised as a separate legal entity

Proprietorship – No registration is required. The person is responsible for all the actions and thus there is no separate legal entity. Only one person is in charge and the authority cannot be transferred



There is no necessity for RBI permission for the start up business by Indians. 

Limited Liability Company – Registration is needed with the Ministry of  Corporate Affairs under the LLP Act 2008

Partnership – The registration is optional. Minimum two persons are needed to start it and it isn’t recognised as a separate legal entity

Proprietorship – No registration is required. The person is responsible for all the actions and thus there is no separate legal entity. Only one person is in charge and the authority cannot be transferred


T Kalaiselvan
Advocate, Vellore
87163 Answers
2341 Consultations

ONly if you deal in foreign exchange

Prashant Nayak
Advocate, Mumbai
32486 Answers
201 Consultations

No RBI permission is necessary if you are Indian citizens 

Ajay Sethi
Advocate, Mumbai
96962 Answers
7825 Consultations

You will need to obtain following registrations and licences from government authorities:

1. Company registration with ROC.

2. Trade licence from municipal authority.

3. Udyog Aadhaar MSME registration.

4. BIS certification.

5. Bureau of Energy Efficiency certification.

6. NOC from Pollution Control Board.

7. GST registration.

8. Trademark. 

9. IEC Code 

However, specific licence and registration requirements will depend on the manufacturing process and the type of LED light that is being produced.

 

Siddharth Jain
Advocate, New Delhi
6379 Answers
102 Consultations

No RBI permission would be required, if you are an Indian citizen.

Siddharth Jain
Advocate, New Delhi
6379 Answers
102 Consultations

Dear Client,

Any entrepreneur starting a business needs good knowledge about the licenses and registrations required to start a LED manufacturing unit. The essential ones for the LED manufacturing business are summed up below:

  • Company Registration: The business can be started as a proprietorship, partnership, LLP or Limited Liability Partnership, an LLC,  or a Private Limited Company. Depending on the ownership choice, the documentation may involve registering the firm with an Ownership document, Partnership Deed, LLP/LLC documentation etc., at the Registrar of Companies (ROC). 
  • GST registration is mandatory.
  • Municipal Authority Trade Licence is required for all kinds of trading activity and must be obtained from the relevant municipal authorities.
  • Pollution Control Board NOC (No Objection Certificate) is essential as the LED manufacturing industry causes pollution and uses certain hazardous materials that are not friendly to the environment.
  • Trade Mark is another procedure that protects your brand name and business branding.
  • Ministry of Micro, Small and Medium Enterprises or MSME Udyog registration & Aadhar Certification is also required. Before applying for the MSME Certification, you must register with the MSME Ministry and obtain the 12-digit MSME Udyog Aadhar Number for your LED manufacturing industry.
  • Certification from the Bureau of Energy Efficiency as to how much energy the plant consumes is also required for manufacturing LED bulbs. 
  • Bureau of Indian Standards (BIS) Certification is required mandatorily for specific LED items notified by the DG of Foreign Trade and is not a country dependent procedure.
  • Importer-Exporter Code (IEC) Code is required if you plan to export your LED products from India.

Thank You.

 

 

Anik Miu
Advocate, Bangalore
10178 Answers
120 Consultations

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