Important Process for Starting a Manufacturing Business in India

The manufacturing industry in India is currently one of the most well-known and rapidly expanding in the world, with the potential to reach US$ 1 trillion by 2025 and aim to contribute up to 25% of the country’s GDP by that time, thanks to the ambitious Indian Government. This blog introduces our knowledgeable and reasonably cost-effective legal services for India’s manufacturing business, including our online company registration service for anyone looking to work in a particular manufacturing sector.   

In order to conduct business in the preferred manufacturing fields, entrepreneurs, industrialists, and investors from India can easily make use of our prompt and reliable services for manufacturing company registration in India.   

How to Start a Manufacturing Business in India?
 

Today, India has become a desirable location for manufacturing investments, attracting both foreign and domestic corporations. It’s interesting how many young entrepreneurs in India are moving from Tier 2 and Tier 3 cities into the manufacturing sector, which is a very positive sign of decentralisation of industrial development. Let's examine the various procedures to launch a manufacturing business as more and more business owners aims to investigate the potential in the Indian manufacturing sector.

1. Market Research

Any type of business needs market research, and it’s a very crucial step for launching a company. It aids in getting logical conclusions about various business-related issues, including the size of the factory, location, investments, etc. In addition,  market research provides a comprehensive and detailed understanding of the market dynamics and your competitors. 

2. Product Ideas

The process of product conceptualization includes assembling all of your ideas about your company, including the product line, industry vertical, etc. After evaluating the concepts, you will choose one to produce based on a number of factors, including market demand, supply, demand projections for the future, the availability of raw materials, manufacturing costs, etc.      

3. Detailed Project Report & Techno-Economic Feasibility Report

Nearly all project-related details are covered in the detailed project report (DPR). It offers comprehensive details on a number of business-related topics, including raw material costs, labour expenses, machinery, fixed capital for land and buildings, working capital, financial tools, Return on Investments, etc. 

The project’s technical and financial viability is determined by the techno-economic feasibility report (TFER). It covers issues like the technology to be employed, the necessary finances, the risks associated, the likelihood of profits, etc.

4. Finances 

Once the DPR and TEFR are completed, obtaining the finances needed to launch your business will be simple. In the country, there are numerous government programmes, subsidies, and grants that offer financial support, especially for MSMEs. 

5. Development and Marketing

In this cutthroat corporate environment, it’s critical to begin marketing efforts far in advance of the product's official release onto the market. It provides enough time to adapt successfully to the shifting market dynamics and client expectations. Therefore, it is advisable to begin marketing efforts as soon as the DPR and funding are complete. 

6. Machinery Procurement 

The type of machinery needed by the manufacturing business varies depending on the processes involved. You can choose between manually operated, semi-automated, or fully automated machinery, depending on the scale and expenditure. 

Before ordering the machinery, you should get advice from a professional as machinery plays an important part in manufacturing.       

7. Plan Layout Design

After placing your order for the machinery, you may begin planning your plant’s design. When the plant is prepared, you can install all of the necessary equipment to start production. 

The location of the factory has a significant impact on the final product’s price, so special consideration must be given while choosing the site by considering things like connectivity, the availability of water and energy, etc.     

8. Workforce Recruitment 

Manufacturing is a labour-intensive sector that needs a workforce that is skilled and knowledgeable. Manufacturing is a labour-intensive sector that needs a workforce that is skilled and knowledgeable. 

The business's productivity is based on how well-trained its human resources are. Therefore, in order to maximise their use, new businesses must have professionals training their workforce in a variety of production processes.   

9.  Product Prototyping & First Production Run

You can begin prototyping and testing the products after opening the plant and hiring staff. When prototyping, you will build a preliminary version of the product and test it to see if it lives up to expectations. It helps design the product more quickly and more affordably. 

The first production run should then be carried out to ensure that everything is operating according to plan on the shop floor. 

10. Mass Production 

Once the first production run and prototyping are complete, you can begin mass production of your products for commercial use. However, you must first gather all the raw materials needed for the large-scale production of the products before moving further with mass production.

But before all of these steps first, you need to register your company and get various licences needed as per your business type. 

How to Register a Manufacturing Business in India?

For a manufacturing company's operations to run smoothly and profitably in India, we offer the following legal and advisory services, including assistance with the registration of a private or public limited company:

• Making Directors' DSCs and DINs prepared [Form DIR-3]
• Reserving the proposed company name [Form INC-1]
• The formation of the necessary MOA and AOA, consent letters, affidavits, powers of attorneys, etc.
• Filing a company registration application [using Form INC-7]
• Submitting any further papers and documentation required to the relevant ROC
• Getting the manufacturing company's PAN, TAN, GSTIN, bank account, export-import code (IEC), etc.
• Obtaining the necessary permits and licences from the relevant government agencies
• Expert and cutting-edge legal services for the registration and protection of manufacturing companies' brands, logos, trademarks, patents, and designs.

In India, a manufacturing business basically needs the following things:

• Company Registration details
• Details about a bank account
• GST number, MSME registration, Pan card, etc.

Conclusion 

You can operate your manufacturing business successfully and accelerate business growth after you have the necessary documentation. However, Online Legal India can aid you if you require help registering your business or obtaining an MSME registration certificate. Our expert’s guidance will assist you in overcoming the registration process's difficulties.