📋 Licence Checklist at a Glance
- ✅ 1. Udyam Registration (MSME) — Free, online, do this first
- ✅ 2. GST Registration — Required for invoicing
- ✅ 3. Factory Licence — Required if 10+ workers with power
- ✅ 4. Trade Licence — From local municipal body
- ✅ 5. Pollution NOC — Most bolt plants are Green category
- ✅ 6. Fire NOC — Required for most industrial sheds
- ⭐ 7. BIS/ISI Certification — Optional but opens government supply
Operating without the correct licences can result in fines, forced shutdown, and disqualification from government contracts. The good news: the licensing process for a small nut bolt plant is straightforward, mostly online, and can be completed within 30–60 days if you follow the right sequence.
This guide covers every licence in the correct order to apply. Start with Udyam registration — it unlocks access to all other government schemes and licences.
1. Udyam Registration (MSME Registration)
This is the first thing you should do — before anything else. Udyam Registration is the official MSME certification from the Government of India. It is free, fully online, and takes less than 30 minutes.
Why it is essential:
- Required to apply for PMEGP, Mudra Loan, CGTMSE and all government MSME schemes
- Gives you priority in government procurement tenders
- Provides protection under the MSME Delayed Payment Act
- Required for GeM (Government e-Marketplace) registration
How to apply:
Visit udyamregistration.gov.in. You need only your Aadhaar number and PAN. No documents to upload. The certificate is issued instantly. If you have not yet started production, register as a "proposed" MSME — you can update it once you begin.
Timeline: Same day | Cost: Free
2. GST Registration
GST registration is mandatory for any manufacturing business. Without it, you cannot issue tax invoices, which means large buyers (manufacturers, distributors, government contractors) will not buy from you.
Key facts:
- Mandatory if annual turnover exceeds ₹40 lakh (manufacturing)
- Register even if below threshold — it signals professionalism and enables Input Tax Credit
- Fasteners (nuts and bolts) attract 18% GST under HSN code 7318
- You can claim input tax credit on raw material, machines and services purchased
How to apply:
Visit gst.gov.in. Apply online with Aadhaar, PAN, bank account details and business address proof. A GST officer may visit your premises for verification.
Timeline: 7–15 working days | Cost: Free
3. Factory Licence
A factory licence under the Factories Act 1948 is required if your unit employs 10 or more workers using power-operated machinery. Since all nut bolt plants use electric machines, this applies to most plants from day one.
How to apply:
Apply to the Chief Inspector of Factories in your state. In most states, applications are now online through the labour department portal. You will need: building plan/layout, list of machines with horse power, number of workers and Udyam certificate.
Timeline: 30–60 days | Cost: ₹500 – 5,000 depending on state and worker count
4. Trade Licence
Also called a Shop and Establishment Licence in some states. Issued by your local municipal corporation or panchayat, it gives you permission to operate a business at your specific address. Required for opening a business bank account in many cases.
Timeline: 7–21 days | Cost: ₹500 – 2,000 per year
5. Pollution NOC (Consent to Establish / Consent to Operate)
Issued by the State Pollution Control Board (SPCB). You need two stages of consent:
- Consent to Establish (CTE) — Before you set up machines. For planning.
- Consent to Operate (CTO) — Before you start production.
Apply online through your state's SPCB portal. You will need: plant layout, list of machines, raw material details and Udyam certificate.
Timeline: 30–90 days | Cost: ₹5,000 – 25,000 depending on state
6. Fire NOC
Most industrial sheds and factory buildings require a No-Objection Certificate from the local Fire Department. This is especially important if your shed is within a notified industrial area. Apply to your district's Fire Department with your building plan and machine layout.
Timeline: 15–45 days | Cost: ₹1,000 – 5,000
7. BIS / ISI Certification (Highly Recommended)
BIS (Bureau of Indian Standards) / ISI mark certification is optional for selling in the open market, but becomes effectively mandatory if you want to supply to:
- Railways (RDSO approved)
- Government construction projects (PWD, NHAI, etc.)
- Defence supply
- Large OEM automotive manufacturers
BIS certification requires a formal quality management system, sample testing at BIS labs, and periodic factory inspections. It typically takes 6–12 months to obtain and costs ₹50,000–2 lakh in fees and preparation. However, it opens significantly higher-value customer segments.
Timeline: 6–12 months | Cost: ₹50,000 – 2 lakh
Summary Timeline for a New Plant
| Licence | When to Apply | Timeline |
|---|---|---|
| Udyam Registration | Day 1 — before anything else | Same day |
| GST Registration | Week 1 | 7–15 days |
| Trade Licence | Week 1 | 7–21 days |
| Pollution CTE | Before setting up machines | 30–90 days |
| Factory Licence | Before starting production | 30–60 days |
| Fire NOC | Before starting production | 15–45 days |
| Pollution CTO | Before starting production | 30–45 days |
| BIS Certification | Once plant is running smoothly | 6–12 months |
💡 Tip: Apply for Pollution NOC Early
The Pollution NOC (Consent to Establish) is the longest step — 30 to 90 days. Apply for this first, in parallel with setting up your shed and ordering machines. If you wait until machines arrive to apply, you could delay your launch by 2–3 months.
🏭 Get a Machine Quotation for Your Applications
Most licence applications (Pollution NOC, Factory Licence) require a list of machines with specifications and power consumption. Samrat Machine Tools provides formal machine quotations with full technical specifications — accepted by all government authorities.