Approval and Procedure to Setup an Industry in Gujarat


Approval Type Authority Remarks
1.0 Industrial Approval
1.1 Entrepreneurship Memorandum (EM) District Industries Centre For setting up SME

1.2 Industrial Entrepreneurship Memorandum(IEM) Secretariat For Industrial Approval(SIA), New Delhi For setting up projects other than SME, and not included in the list of compulsory licensing provision

Format of Follow-Up Report to be submitted

1.3 Letter of Intent(LOI) Do Projects requiring compulsory licensing

  • Application in prescribed form
1.4 100% Export Oriented Units(EOU) & SEZ units Development Commissioner, KASEZ Application in prescribed form
2.0 Business Constitution
2.1 Registration as Firm Registrar of Firms Proprietary concerns or Partnership Firm
2.2 For approval of Name of Private/Public Limited Company  and incorporation thereof Registrar of  Companies Private  Ltd. or Public Ltd. Company
2.3 Cooperative Society Registrar of Cooperatives For forming Cooperative Society
3.0 Land for project
3.1 Allotment of plot/shed in Industrial Estate GIDC Application in prescribed form
3.2 Allotment of Government land District Collector No prescribed application
3.3 Agricultural Land Purchase through negotiation No prior permission required
4.0 NA Permission Collector/DDO Prescribed application form for deemed NA
5.0 Environment Clearance  
5.1 No Objection Certificate Gujarat Pollution Board Application in the prescribed form by polluting industries like chemicals,  pharmaceuticals, etc. (other than 99 industries listed by GPCB)
5.2 Environmental  Clearance (EC) Ministry of Environment and Forest (MOEF) Specific projects need prior environmental clearance from MOEF/State level Environment Impact Assessment Authority (SEIAA)
5.3 Consent and Authorization G.P.C.B. On completion of the project and meeting the norms for disposal of effluents, G.P.C.B. will issue consent letter
6.0 Construction of Building  
6.1 Plan Approval in Industrial Estate GIDC Application to Regional Manager, GIDC
6.2 Plan Approval in other area Local Authority, Application to concerned local authority, where site is selected
7.0 Water Requirement
7.1 In Industrial Estate GIDC Application to Regional Manager/ Executive Engineer of GIDC
7.2 River/Public Service Department of
Narmada &  Water Resources, GoG
Application to Executive Engineer in-charge of concerned Irrigation scheme
8.0 Power Requirement  
8.1 Power requirement Gujarat Urja Vikas
Nigam Ltd.-Distribution Company or respective agencies
Application in prescribed form
9.0 Financial Requirement
9.1 Capital Issue SEBI Application in prescribed form to Security Exchange Board of India
9.0 Financial Requirement  
9.2 Term Loan Financial Institutions or Bank Application in prescribed form along with detailed Project Report
9.3 Working  Capital Banks
  • Application to Branch Manager of a Commercial Bank
  • Under the ‘Single Window Scheme’, both term loan & working capital upto Rs 25 lakhs is considered
10.0 Final Approval  
10.1 SME DIC EM Part II
10.2 Large Units SIA
  • LOI is to be converted into IL
  • IEM Part B in case of delicensed units
11.0 Registration of Establishment
11.1 Registration under Shops & Establishment Act Local Authority/Municipal  Corporation Registration of an industrial unit not covered under Factories Act
11.2 Registration as Factory Chief Inspector of Factories Application in prescribed form under the Factories Act
12.0 Value Added Tax
12.1 VAT Registration Commercial  Tax Officer Application for certificate of  registration under GVAT Act 2003. (In case of turnover exceeding Rs. 5 lakhs having sales of above Rs. 10,000 VAT applicable items)

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