Forming a Food Industry-1

I have given the details regarding forming a food industry in India. What are the licences, certificates, clearances and etc. that needed to form a industry is given here. It will continue in subsequent parts.

Formation:
Indian laws do not permit limited liability partnerships. While small businesses may be run as sole proprietary or partnership concerns, it is prudent to consider a limited liability company for any medium or large sized businesses. Branches of foreign companies are subject to restrictions on operations and this form may be generally suitable only for export-oriented activities

1.Foreign companies may consider setting up of a liaison office as the first step to starting operations in India.While permission is required for the setting up of the liaison office, this is expeditiously granted.

2.The liaison office can act as a listening post for gathering information, but cannot conduct any commercial activity. Consequently, it would not be liable to income tax in India. Its expenses must be fully met from inward foreign exchange remittances.

3.While acquisition of, or buying into an existing business, may be considered as an alternative to the setting up of a new operation, certain incentives and concessions may not be available to such a business.

Procedures:
The procedures to establish an industrial undertaking in India may involve obtaining:

1.Certificate of incorporation under the Companies Act, 1956
2.An industrial license under the Industries (Development and Regulation) Act, 1951 or filing an Industrial Entrepreneur's Memorandum.
3.Clearance for the foreign financial and/or technical collaboration, which may be granted automatically under certain circumstances.
4.Environmental clearance under the Environment (Protection) Act, 1986.

Source-Food Processing Industries in India,1995-96