Question 1

Who needs an industrial license?

Accepted Answer

Companies (small, medium, or large scale) that are planning to manufacture products listed under the Industrial Development and Regulation Act must obtain an industrial license to run operations in India. The items allowed for manufacturing under this act include defence and war equipment and components, industrial explosives, certain hazardous chemicals, tobacco and tobacco substitutes, and alcohol.

Question 2

How long does it take to get an industrial license?

Accepted Answer

The time frame for getting an industrial license from application submission to approval may vary, but in general, it may take 20-60 days.

Question 3

What happens if I operate without a license?

Accepted Answer

If a company go ahead to produce items listed under the IDR Act without an industrial license, it can lead to serious consequences such as heavy fines, lawsuits, and in some cases imprisonment.

Question 4

How much does an industrial license cost?

Accepted Answer

The cost of an industrial license varies based on location, type of license, and scale of the industry. The application fee is around Rs. 2500, and there will be additional charges to get the final approval for the industrial license.

Question 5

What is the difference between an industrial license and a factory license?

Accepted Answer

An industrial license permits setting up specific industrial activities as per regulatory guidelines, while a factory license ensures all manufacturing units comply with safety, labour, and operational standards under factory laws.

Industrial Licenses

What Is Industrial Licensing? Definition, Importance & Types

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