Legal Requirements
Build Your Business on a Foundation of Compliance
A feasible project is a legal project. One of the most common reasons for business failure—or stalled projects—is overlooking regulatory compliance.
At ProjectFeasibilityStudy.com, we integrate legal feasibility into every stage of our analysis. This guide provides a checklist of the essential laws, licenses, and permits you must consider before launching your venture in India.
1. General Business Registrations
Regardless of your industry, every business must establish its legal identity.
- Business Entity Registration:
- Sole Proprietorship / Partnership: Simple to start, unlimited liability.
- LLP / Pvt Ltd Company: Registered with the Ministry of Corporate Affairs (MCA). Offers limited liability and is preferred for raising investment.
- Tax Registration:
- GST (Goods & Services Tax): Mandatory if your turnover exceeds ₹40 Lakhs (₹20 Lakhs for services) or for inter-state trade.
- PAN & TAN: Essential for filing income tax and deducting TDS.
- Udyam Registration (MSME): Highly recommended for small businesses to avail government subsidies, lower interest rates, and collateral-free loans.
2. Sector-Specific Legal Feasibility
Different industries face different regulatory landscapes. Our feasibility studies cover these specific requirements in detail:
A. Industrial & Manufacturing Projects
- Factory License: Required under the Factories Act, 1948, for units employing 10+ workers with power (or 20+ without).
- Environmental Clearance:
- Consent to Establish (CTE): Before construction begins.
- Consent to Operate (CTO): Before production starts.
- Issued by the State Pollution Control Board (SPCB).
- BIS Certification: Mandatory for products affecting health and safety (e.g., cement, electronics, food products).
B. Commercial & Real Estate Projects
- Zoning Laws: Ensuring the land is designated for “Commercial” use.
- RERA Compliance: Mandatory registration for real estate projects >500 sq. meters to protect buyers.
- Fire Safety NOC: A critical certificate from the Fire Department required for occupancy.
- Shop & Establishment Act: Regulates working hours, holidays, and wages for offices, shops, and hotels.
C. Agricultural & Allied Projects
- Land Conversion: Legal permission is required to convert “Agricultural Land” for industrial or commercial use (NA Order).
- APMC License: Required if you intend to trade agricultural produce outside the farm gate.
- FSSAI License: Mandatory for any food processing, packaging, or storage business.
D. Import & Export Projects
- IEC (Import Export Code): The primary license from the DGFT required to move goods across borders.
- RCMC (Registration Cum Membership Certificate): Issued by Export Promotion Councils (e.g., APEDA for agri-exports, EEPC for engineering) to avail export benefits.
3. Intellectual Property Rights (IPR)
Protecting your idea is as important as executing it.
- Trademark: Protects your brand name and logo.
- Patent: Protects a unique invention or technical process.
- Copyright: Protects creative content, software code, and designs.
Startup Tip: Registered Startups in India can get an 80% rebate on patent filing fees.
4. Labor Laws & Employment
If you hire staff, you become an employer with legal obligations.
- Provident Fund (PF): Mandatory for firms with 20+ employees.
- ESIC (Employee State Insurance): Health insurance for employees earning less than ₹21,000/month.
- Minimum Wages Act: Ensuring you pay the state-mandated baseline salary.
How We Help
Navigating this maze can be overwhelming. Our Project Feasibility Reports include a dedicated Legal & Regulatory Analysis chapter that:
- Identifies the specific licenses your project needs.
- Estimates the cost and time required to obtain them.
- Highlights “Red Flag” regulations that could stop your project.
Don’t let legal hurdles surprise you. Get the full picture.
- [View Industrial Compliance Guides]
- [Check Commercial Licensing Requirements]
- [Contact Us for a Custom Regulatory Report]
