Startup Approvals/ Clearances For Pre-Establishment,Pre-Operations,Exit Bussines

Pre-Establishment Approvals/ Clearances

Sl No. Name of the Clearance / Approval Department Permissible Time Limits
1 Power Feasibility certificate/sanction of power supply
Power Connection
DISCOM-Department of Energy 7 days
To be based on the length of the HT line
2 Electrical Inspectorate statutory approval for drawings Chief Electrical Inspectorate-Department of Energy 7 days
3 Building /Site Permission /Approval/License from Municipality/ UDA/ DT&CP/ Department of Municipal Administration & Urban Development 7 days
4 Building /Site Permission from Gram Panchayat Department of Panchayati Raj & Rural Development 15 days / Deemed
5(i) Approval for water supply from ULB s-MA & UD Department
Water Connection
Department of Municipal Administration & Urban Department 7 days
21 days
5(ii) Permission to draw water from river/public tanks, Irrigation & CAD Department Permission to dig new wells from Ground Water Department Irrigation & CAD Department 15 days
6 Factory Plan Approval Directorate of Factories-Department of Labour Employment Training and Factories 7 days
7 Fire-No Objection Certificate Directorate of Fire Services-Department of Home 15 days
8 Registration for VAT, CST Commercial Tax-Department of Revenue 3 days
9 Consent for Establishment
a)   Green Category
b)   Orange Category
c)   Red Category
APPCB 7 days
15 days
21 days
10 Approval of change of land use for Industrial purpose Land Administration-Department of Revenue If in Master Plan - 10 days
If not in Master Plan – 21 days
11 Registration of Partnership Firms Registration & Stamps- Department of Revenue 3 days
12 License for manufacture of bulk drugs / formulations / cosmetics Drug Control Administration- Department of Health, Medical & Family Welfare 15 days
13 License for manufacture of ayurvedic, homeo, siddha, unani AYUSH-Department of Health, Medical & Family Welfare 15 days
 

Pre-Operation Approvals/ Clearances

Sl No. Name of the Clearance / Approval Department Permissible Time Limits
1 Final approval from Electrical Inspectorate- Department of Energy-Chief Electrical Inspector Chief Electrical Inspectorate-Department of Energy 7 days
2 Registration under Professional Tax Commercial Tax-Department of Revenue Spot approval
3 Factory Registration / licensing Directorate of Factories-Department of Labour Employment Training and Factories 7 days / Deemed for Registration only
4 Registration of shops & establishments Commissionerate of Labour -Department of Labour Employment Training and Factories Spot approval
5 Occupancy certificate from Fire Services Department Directorate of Fire Services-Department of Home 15 days
6 Consent for Operation/ Authorization
a)   Green Category
b)   Orange Category
c)   Red Category
d)   Authorization of units handling hazardous wastes
APPCB 7 days
15 days
21 days
Processed along with CFO
7 Boiler registration Directorate of Boilers-Department of Labour Employment Training and Factories 15 days
8(i) Registration of establishments deploying contractual workmen
Commissionerate of Labour -Department of Labour Employment Training and Factories Spot approval
8(ii) Registration of establishments deploying inter-state migrant workmen Commissionerate of Labour -Department of Labour Employment Training and Factories Spot approval
9 Registration of plastic manufacturers / recyclers APPCB 15 days
10 License for storage of petroleum, diesel and Naptha District Collector/ Civil Supplies Department 15 days
11 License for possession and use of Rectified Spirit and Denatured Spirit Prohibition & Excise Department of Revenue 21 Days

Exit Bussiness

A company can be closed by adopting the following ways:-

(A) Strike off a company under Section 560 :

Section 560, of the Companies Act, 1956, deals with strike off provisions of a defunct company. Any defunct company desirous to strike off its name from the register of Registrar of company can apply in Form FTE for strike off its name from the register maintained by ROC as per Guidelines for ‘FAST TRACK EXIT MODE’ issued vide General Circular No. 36/2011 dated 7.6.2011. Similarly, ROC has also power to strike off any defunct company after satisfying himself of the need to strike off a defunct company and has reasonable cause. But before passing any order in this regard, an opportunity of being heard must be provided to the defunct company by following the due procedure u/s 560.

(B) Winding up

Section 425, of Companies Act, 1956, deals with modes of winding up.
The winding up of a company may be either -
(a) By the Tribunal (also known as compulsory winding up)
(b) Voluntary winding up
(c) subject to the supervision of the Court

Voluntary Winding up : You can get a general picture from the following steps of winding up which are summarized below (except Voluntary winding up)
a) Issuing a written demand for debt payments to the target company.
b) Present a winding up petition to the court and the company
c) Court hearing for the petition
d) Granting of winding up order by the court
e) Meeting of creditors and other relevant parties
f) Appointment of liquidator.
g) Realization and distribution of company’s assets to the creditors
h) Realize of duties for liquidator
i) Dissolution of the company.

Overview of Winding up :
Voluntary winding up which may be:
i) Member’s Voluntary winding up.
ii) Creditor’s Voluntary winding up.
In case of voluntary winding up, the entire process is done without court supervision. When the winding up is complete, relevant documents are filed before the court for obtaining the order of dissolution. A Voluntary winding up can be done by members or creditors. The circumstances in which company may be wound up voluntarily are:
a) When the period fixed for the duration of the company in its articles has expired
b) When an event on the happening of which the company is to be dissolved as per its articles happen.
c) The company resolves by special resolution at any general meeting to be voluntary winding up.