WHAT ARE REGISTRATIONS REQUIRED TO SET UP SOAP INDUSTRY

QUESTION-

From- Shishir

Hi,
I intend to start a handmade soap manufacturing unit in UP.
I guess that handmade soap is under cottage industries in UP. Is it so ?
What are the legal compliance required  like VAT Registration, Excise Registration TM Registration etc.

Regards,

Shishir

ANSWER-

Hi Shishir,

Thanks for posting your query, please get your answer below:

1. Following registrations are required to start your business:

 

• REGISTER AN ENTITY-

The first step in starting any business is to select the form of business. There are various form of business entities and the selection of the entity would depend upon your capital infusion, number of investors etc. You can start as a Private Limited Company, Partnership Firm, LLP, Sole Proprietorship etc.

Being a manufacturing industry, registring a company is desirable but you can also start your business under Sole Proprietorship, as no registration is required to start a Sole proprietorship.

• REGISTER WITH VAT DEPARTMENT- 

Soap Business attracts VAT and you will have to get yourself registered with VAT department in your city. If inter state trade will be done, you will also require CST registration. To know the process to get VAT registration, go to following link:

http://www.ngoandtaxconsultant.in/2013/10/uttar-pradesh-vat.html

 

 

• EXCISE REGISTRATION-

Registration under Excise Act is required since you are under Manufacturing sector.  But you can avail SSI Exemption upto Turnover of Rs. 150 Lakhs. So wait till you achieve the above turnover as there is no point in paying excise duty if you can claim exemption. But if the Project cost and prospects are good than you should register under Excise Department.

• OTHER REGISTRATION-

1. PAN Card (For Company and Partnership Firm, if business is to be run under proprietorship, it is not required)
2. Trade Mark registration (not mandatory but would develop a brand image)
3. NOC from Pollution Board
4. NOC from Fire Department
5. Registration under Shop & Establishment Act.
6. Other registration would depend upon Project to Project basis.

2. Yes you are correct the business comes under Khadi and Village Board.

Hope this helps you. Feel free to contact further for any queries.