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TENDERS
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READ ALL
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Roadmap to setup an industry in gujarat
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Undertaking Government formalities
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For project formulation and Government formalities, iNDEXTb acts as a single
point contact organization in Gujarat.
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A) General
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C) Foreign Technology Agreements
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B) For FDI companies
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D) Specific Approvals
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A) General
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Obtaining provisional SSI registration/filing of IEM/ LOI/LOP
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Approval
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Applicability
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Authority
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Provisional SSI registration
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In the case of SSI and Medium units
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Concerned District Industries Centre
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IEM
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In the case of large delicensed industries with investment exceeding Rs.10 crore
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Secretariat for Industrial Assistance Dept. of Industrial Policy & Promotion, Ministry
of Comm. & Ind., New Delhi
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LOI
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In the case of licensed industries
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Secretariat for Industrial Assistance Dept. of Industrial Policy & Promotion, Ministry
of Comm. & Ind, New Delhi
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LOP
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In the case of 100% EOUs
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a) Items for automatic approval
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Development Commissioner of the concerned EPZ
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b) Items other than automatic approval
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Secretariat for Industrial Assistance Dept. of Industrial Policy & Promotion, Ministry
of Comm. & Ind., New Delhi
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Constitution of business organization – Proprietorship/Partnership/Pvt Ltd/
Public Ltd companies
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Form of business organization
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Type of ownership
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Authority
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Proprietorship
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Individual ownership
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No registration required
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Partnership
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Minimum 2 owners upto a maximum of 20 owners
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Registrar of Partnership Firms Vechan Vera Bhavan, Ashram Road, Ahmedabad 380 009
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Pvt Ltd Co.
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Minimum 2 and maximum 50 shareholders with limited liability
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Registrar of Companies, Gujarat Region, Ahmedabad
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Public Ltd Co.
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Minimum 7 and maximum unlimited numbers with limited liability
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Registrar of Companies, ROC Bhavan, Opp Rrupal Park, Nr Ankur Bus Stand, Naranpura,
Ahmedabad 380 013
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Acquisition of land – from GIDC/Govt authorities/privatesources
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Purpose
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Authority
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Land acquired in GIDC estate
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Concerned Regional office of Gujarat Industrial Dev. Corpn.
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Government land
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Concerned District Collector or DDO under whose jurisdiction the survey nos. fall
with the recommendation of Industries Commissionerate
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Private land
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Deemed NA permission granted by the concerned District Collector or DDO under whose
jurisdiction the survey nos. fall
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Pollution Control Board clearance
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Purpose
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Authority
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Items exempted from obtaining permission
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--
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All other items barring highly polluting industries
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NOC to be obtained from Gujarat Pollution Control Board
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Highly polluting industries
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First NOC to be obtained and on effective installation of pollution control equipments/satisfactory
arrangement for disposal of wastes/effluents, consent to be obtained from Gujarat
Pollution Control Board
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Arrangement of power
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Purpose
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Authority
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For sanction of power
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For sanction of power in Central Gujarat
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To be applied to Madhya Gujarat Vij Co Ltd, Sardar Patel Vidyut Bhavan, Race Course,
Vadodara 390 007
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For sanction of power in Western Gujarat
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To be applied to Pashchim Gujarat Vij Co Ltd,, Laxminagar, Nana Mava Main
Road, Rajkot 360 004
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For sanction of power in Southern Gujarat
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To be applied to Dakshin Gujarat Vij Co Ltd,, Nr Kapodara Char Rasta, Nana
Varachha Road, Surat
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For sanction of power in Northern Gujarat
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To be applied to Uttar Gujarat Vij Co Ltd,,Mehsana 394 001
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Captive power
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Gujarat Urja Vikas Nigam Ltd, Sardar Patel Vidyut Bhavan, Race Course Road, Vadodara
390 007
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Non-conventional sources of energy
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Gujarat Energy Dev. Agency, Vadodara
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Arrangement of water
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Purpose
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Authority
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Units located in GIDC estates
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Executive Engineer, GIDC of the concerned region
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Units located outside GIDC estates for drawing canal water
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Irrigation Dept., Government of Gujarat
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Approval of building plans
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Purpose
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Authority
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Units located in GIDC estates
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Executive Engineer, GIDC of the concerned region
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Units located outside GIDC estates for bore-well permission
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Local authority under whose jurisdiction the location falls
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Registration for incentives available, if any
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Purpose
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Authority
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SSI units
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Concerned DIC
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Other than SSI units
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Industries Commissionerate, Government of Gujarat, Gandhinagar
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Financial tie-up – Medium or long term loan/short term loan for working capital
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Purpose
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Authority
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Term loan and Working capital
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Any commercial bank
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Fund to be raised through public issue
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Purpose
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Authority
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Offer of shares to the public
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As per the guidelines issued by RBI/SEBI
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B) For FDI companies
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Approval
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Applicability
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Authority
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Automatic Route
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All items/activities produced/carried out by new ventures, barring a few falling
under automatic route for FDI/NRI/OCB investment upto 100%
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Reserve Bank of India after ensuring compliance of sectoral policy and equity caps
stipulated if any.
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Automatic Route
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Existing companies proposing to foreign equity with an expansion programme, should
fulfill (i) the increase in equity level to result from the expansion of the
equity base of the company without acquisition of existing shares by NRI/OCB/foreign
investors, (ii) money to be remitted in foreign currency and (iii) proposed expansion
programme to be in the sectors under Automatic Route.
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Reserve Bank of India after ensuring compliance of sectoral policy and equity caps
stipulated if any.
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Automatic Route
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Existing companies without an expansion program for eligibility under Automatic
Route should fulfill (i) they are engaged in the industries under Automatic Route
(ii) the increase in equity level will result in expansion of the equity base and
(iii) the foreign equity in foreign currency.
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Reserve Bank of India after ensuring compliance of sectoral policy and equity caps
stipulated if any.
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For Foreign Direct Investment under the Automatic Route, RBI has given permission
to Indian companies to accept investment under this Route without obtaining prior
approval from RBI. Investors are required to notify the concerned regional
office of RBI of receipt of inward remittance within 30 days of such receipts and
file required documentation within 30 days of issue of shares to foreign investors.
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Government Approval
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All proposals requiring IL under ID&R Act, 1951
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Foreign Investment Promotion Board, Ministry of Industry, GoI, New Delhi
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Government Approval
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Foreign investment exceeding 24% in the equity capital of units manufacturing items
reserved for small scale industries.
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Foreign Investment Promotion Board, Ministry of Industry, GoI, New Delhi
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Government Approval
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All items requiring an IL in terms of the locational policy notified by Government
under NIP, 1991.
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Foreign Investment Promotion Board, Ministry of Industry, GoI, New Delhi
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Government Approval
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All proposals in which the foreign collaborator has a previous venture/tie up in
India
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Foreign Investment Promotion Board, Ministry of Industry, GoI, New Delhi
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Government Approval
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All proposals relating to acquisition of shares in an existing Indian Company in
favour of foreign/NRI/OCB investor
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Foreign Investment Promotion Board, Ministry of Industry, GoI, New Delhi
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Government Approval
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All proposals falling outside notified sectoral policy/caps or under sectors in
which FDI is not permitted
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Foreign Investment Promotion Board, Ministry of Industry, GoI, New Delhi
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RBI has granted general permission under FEMA for proposals approved by the
Government. Indian companies getting foreign investment approval through FIPB route
do not require any further clearance from RBI for the purpose of receiving inward
remittance and issue of shares to foreign investors. Such companies would notify
the concerned regional office of the RBI about the receipt of inward remittance
within 30 days and file the required documentation within 30 days after issue of
shares to the foreign investors.
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C) Foreign Technology Agreements
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Approval
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Applicability
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Authority
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Automatic Approval for foreign technology collaboration agreements
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All industries for foreign technology collaboration agreement subject to (i) lumpsum
payments not exceeding US$ 2 million (ii) royalty payable limited to 5% for domestic
sales and 8% for exports subject to a total payment of 8% on sales over a period
of 10 years and (iii) period of payment of royalty not exceeding 7 years from commencement
of commercial production or 10 years from the date of agreement whichever is earlier.
The limits of royalty are net of taxes.
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Reserve Bank of India
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Automatic Approval for use of foreign trade marks and brand names
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Payment of royalty upto 2% for export and 1% for domestic sales is allowed on trade
marks and brand name of the foreign collaborator without technology transfer. This
royalty shall be paid as a percentage of net sales .
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Reserve Bank of India
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Automatic Approval by wholly owned subsidiaries
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Payment of royalty upto 8% on exports and 5% for domestic sales by wholly owned
subsidiaries to offshore parent companies is permitted without any restriction on
the duration of royalty payments.
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Reserve Bank of India
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Government approval
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For following categories, Govt approval is necessary: (i) Proposals attracting compulsory
licensing (ii) Items of manufacture reserved for SSI sector (iii) Proposals involving
any previous JV or technology transfer or trade mark agreement in the same or allied
field in India (iv) Extension of agreements (v) Proposals not meeting any or all
the parameters for Automatic Approval.
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Secretariat for Industrial Assistance Dept. of Industrial Policy & Promotion,
Ministry of Comm. & Ind., New Delhi
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D) Specific Approvals
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Purpose
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Authority
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Food & drug manufacturing units
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Commissioner of Food & Drug Administration.
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Environmental clearance
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Forest & Env. Dept. , Government of Gujarat
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Boiler registration
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Chief Inspectorate, Steam & Boiler, Government of Gujarat
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