{"id":9983,"date":"2020-04-13T08:30:17","date_gmt":"2020-04-13T03:00:17","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=9983"},"modified":"2020-07-04T11:55:31","modified_gmt":"2020-07-04T06:25:31","slug":"what-is-the-procedure-for-opening-a-new-manufacturing-company","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-opening-a-new-manufacturing-company\/","title":{"rendered":"What is the Procedure for opening a New Manufacturing Company?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The manufacturing sector has played a pivotal role in the growth of the Indian economy. Considering the contribution of manufacturers, <strong>Prime Minister<\/strong>, <strong>Mr. Narendra Modi,<\/strong> launched a new program called \u201c<strong>Make in India<\/strong>\u201d on <strong>25<\/strong><sup><strong>th<\/strong><\/sup><strong> September 2014<\/strong>. The purpose is to foster innovation, facilitate investments, enhance skills, and guard intellectual property to build the best manufacturing infrastructure in the country. As per a report, India is prospective to be the 5th largest manufacturing country across the world by the end of this year. Further, the <strong>Government aims to accomplish 25% GDP share<\/strong> and create around <strong>100 million job<\/strong> opportunities in the manufacturing sector by 2022.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/swaritadvisors.com\/msme-registration\" target=\"_blank\" style=\"background-color:#01669c\" rel=\"noopener noreferrer\">Get MSME Registration Today &#8211; Apply Now<\/a><\/div>\n\n\n\n<p>If you also intend to start a new manufacturing company, this write-up shall provide you substantial knowledge of the same.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a82f80b576\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a82f80b576\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-opening-a-new-manufacturing-company\/#How_is_%E2%80%9CMake_in_India_Program%E2%80%9D_beneficial_for_Manufacturing_Sector\" title=\"How is \u201cMake in India Program\u201d beneficial for Manufacturing Sector?\">How is \u201cMake in India Program\u201d beneficial for Manufacturing Sector?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-opening-a-new-manufacturing-company\/#Factors_to_consider_while_setting_up_a_Manufacturing_Business\" title=\"Factors to consider while setting up a Manufacturing Business\">Factors to consider while setting up a Manufacturing Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-opening-a-new-manufacturing-company\/#Licenses_required_for_Manufacturing_Company\" title=\"Licenses required for Manufacturing Company &nbsp;\">Licenses required for Manufacturing Company &nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-opening-a-new-manufacturing-company\/#Business_ideas_to_open_a_new_Manufacturing_Company\" title=\"Business ideas to open a new Manufacturing Company &nbsp;\">Business ideas to open a new Manufacturing Company &nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-opening-a-new-manufacturing-company\/#Procedure_to_open_a_Manufacturing_Unit\" title=\"Procedure to open a Manufacturing Unit\">Procedure to open a Manufacturing Unit<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-opening-a-new-manufacturing-company\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_%E2%80%9CMake_in_India_Program%E2%80%9D_beneficial_for_Manufacturing_Sector\"><\/span><strong>How is \u201cMake in India Program\u201d beneficial for Manufacturing Sector?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>propaganda of Make in India<\/strong> has turned out to be a blessing for the manufacturing industry. The Indian Government has adequately emphasized on the development of 25 priority sectors in the manufacturing business with this scheme which are mentioned below:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\nAutomobile Components\n<\/td><td>\nFood Processing\n<\/td><td>\nRoads and Highways\n<\/td><\/tr><tr><td>\nAutomobiles\n<\/td><td>\nIT and BPM\n<\/td><td>\nRenewable Energy\n<\/td><\/tr><tr><td>\nAviation\n<\/td><td>\nLeather\n<\/td><td>\nSpace\n<\/td><\/tr><tr><td>\nBiotechnology\n<\/td><td>\nMining\n<\/td><td>\nThermal Power\n<\/td><\/tr><tr><td>\nConstruction\n<\/td><td>\nMedia and Entertainment\n<\/td><td>\nTourism and Hospitality\n<\/td><\/tr><tr><td>\nChemicals\n<\/td><td>\nOil and Gas\n<\/td><td>\nTextiles and Garments\n<\/td><\/tr><tr><td>\nDefence Manufacture&nbsp;\n<\/td><td>\n<br>\n<\/td><td>\n<br>\n<\/td><\/tr><\/tbody><\/table>\n\n\n\n<ul><li><strong>Boost Economic Growth<\/strong>: &nbsp;The campaign of \u201cMake in India\u201d is a gateway for an increased number of exports and manufacturing activities. A rise in exports will uplift the economy and transform India into a manufacturing hub. It opens doors for foreign investments with advanced technology, thus boost India\u2019s GDP.<\/li><li><strong>Create more Job Opportunities<\/strong>: The program is a route for several job opportunities. It is expected to generate around ten million jobs. An increase in investment has a direct impact on the manufacturing job market and helps to refurbish the skills of human labour.&nbsp;<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"506\" height=\"177\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/04\/make-in-india.png\" alt=\"make in india\" class=\"wp-image-9985\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/04\/make-in-india.png 506w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/04\/make-in-india-300x105.png 300w\" sizes=\"(max-width: 506px) 100vw, 506px\" \/><\/figure>\n\n\n\n<ul><li><strong>Escalate Foreign Direct Investments<\/strong>: After the enforcement of \u201c<a rel=\"noreferrer noopener\" aria-label=\"Make in India (opens in a new tab)\" href=\"https:\/\/www.makeinindia.com\/home\" target=\"_blank\">Make in India<\/a>,\u201d there has been a considerable hike in <strong>Foreign Direct Investments<\/strong>. Due to the ease of commencing manufacturing business, more companies are looking to set up factories to manufacture their products.<\/li><li><strong>Make in India unit<\/strong>: The Department of Commerce facilitates manufacturers to easily carry out regulatory clearance within the shortest period and ensures that businesses can be done easily.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_to_consider_while_setting_up_a_Manufacturing_Business\"><\/span><strong>Factors to consider while setting up a Manufacturing Business<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These are some essential things to keep in mind before starting a new manufacturing company:<\/p>\n\n\n\n<ul><li><strong>Set-up Partnership Firm<\/strong>&#8211; As a start-up, you should associate with big manufacturers. Create innovative strategies so that large manufacturing units collaborate with you.<\/li><li><strong>Thorough Market Research<\/strong>&#8211; If you are seeking to be a manufacturer or set your own manufacturing unit, you need to conduct extensive market research. Make use of trade journals and fairs to research and connect with existing manufacturers.<\/li><li><strong>Make a Robust Team- <\/strong>Human asset management is the most efficient way to empower a business. It is imperative to assess the abilities of your manufacturers before distributing the roles &amp; responsibilities.\u00a0<\/li><li><strong>Get Legal Licenses or Registrations- <\/strong>There are some legal provisions and compliances that every business must adhere to. Similarly, a manufacturing business must register with the Government.<\/li><li><strong>Expand in big markets- <\/strong>It\u2019s good tostart small, but to gain success, a manufacturer must penetrate the large markets.\u00a0 Choose a niche that has more demand and less competition to sustain in the industry.<\/li><li><strong>Keep low cost in production- <\/strong>Make optimal use of resources to generate more revenue. Keep your production cost low, which is only possible when you stick to a budget.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Licenses_required_for_Manufacturing_Company\"><\/span><strong>Licenses required for Manufacturing Company &nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Different types of businesses follow various rules and regulations. Likewise, there is much <strong>legal compliance<\/strong> associated with a manufacturing firm, so you must obtain the most common licenses or registration to open a new manufacturing company:<\/p>\n\n\n\n<ul><li><strong>Factory License from the local authority- <\/strong>Any manufacturing unit with less than 10 employees needs to <strong>get a Factory License<\/strong> from the district officer or local authority. Also, the companies with more than 10 workers should get a license from the State headquarters.<\/li><li><strong>SSI\/MSME Registration- <\/strong>Small manufacturers can avail several benefits by registering under the MSMED Act, such as collateral-free credit, lower electricity bills, and subsidies.\u00a0<\/li><li><strong>NSIC Registration-<\/strong>Similar to MSMED Act, <a rel=\"noreferrer noopener\" aria-label=\"NSIC Registration (opens in a new tab)\" href=\"https:\/\/swaritadvisors.com\/nsic-registration\" target=\"_blank\"><strong>NSIC Registration<\/strong><\/a> also aid, promote, and foster the growth of small and large manufacturing units.<\/li><li><strong>Environment and Pollution related Clearance- <\/strong>Any entrepreneur who strives to set up a manufacturing company must take a No Objection Certificate from the State Pollution Control Board before carrying the manufacturing activities.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_ideas_to_open_a_new_Manufacturing_Company\"><\/span><strong>Business ideas to open a new Manufacturing Company &nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To gain a competitive edge in the cutting throat competitive manufacturing market, you should have some unique business ideas. Some of the peculiar ideas to start a new manufacturing company are:<\/p>\n\n\n\n<ul><li>Candle-Making<\/li><li>Plastic Bottle<\/li><li>Sport related goods<\/li><li>Stationary Items<\/li><li>Fertilizers&nbsp;<\/li><li>Leather Goods<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_open_a_Manufacturing_Unit\"><\/span><strong>Procedure to open a Manufacturing Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em>Take the following <\/em><strong><em>steps to incorporate a manufacturing business in India<\/em><\/strong><em>:<\/em><\/p>\n\n\n\n<ul><li><strong>Conduct Research-<\/strong>The success or failure of a company depends upon its research strategies. It is important to know about the level of the competition you may have to face after <em>incorporating the business<\/em>.<\/li><li><strong>Determine Location-<\/strong> Location is a crucial factor of a business, so determine where you will set your factory or manufacturing unit. Also, decide on the market in which you will sell your products.<\/li><li><strong>Make a strong team- <\/strong>After fixing the location and product line, you should employ experienced manufacturers. Distribute roles and responsibilities in different departments like operations, sales, marketing, inventory management, public relations, etc.<\/li><li><strong>Apply for Registrations- <\/strong>Any business without registration is considered as illegal. Therefore, take assistance from professionals and do MSME\/ NSIC, <a rel=\"noreferrer noopener\" aria-label=\"Company registration (opens in a new tab)\" href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" target=\"_blank\"><strong>Company registration<\/strong><\/a> to carry the manufacturing activities.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><div class=\"shadow4\">The process of starting a new manufacturing business is a daunting task. One needs to consider an array of factors like product line, market, location to <strong>establish the manufacturing business<\/strong>. To legitimize your business take the guidance of Swarit Advisors. We hold expertise in company registration and help you in the legal procedure.\u00a0<\/div><\/p>\n\n\n\n<p class=\"text-left\"><b>Read, More<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/mineral-water-plant-setup-process\/\">How to set up a Mineral Water Plant in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The manufacturing sector has played a pivotal role in the growth of the Indian economy. Considering the contribution of manufacturers, Prime Minister, Mr. Narendra Modi, launched a new program called \u201cMake in India\u201d on 25th September 2014. The purpose is to foster innovation, facilitate investments, enhance skills, and guard intellectual property to build the best [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":9984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[330,170],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/9983"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=9983"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/9983\/revisions"}],"predecessor-version":[{"id":11432,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/9983\/revisions\/11432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/9984"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=9983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=9983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=9983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}