Incentives, and two-stage consent
Manufacturing & Industrial Setup in India
India offers a concessional tax rate and sector incentive schemes for manufacturers, and a two-stage environmental consent.
GCC business setup specialists
The incentives are real; so is the permitting
A concessional corporate tax rate is available for qualifying new manufacturing companies, and sector-specific production incentive schemes offer support tied to output and investment. Both are worth structuring for before you begin. What governs the timeline is permitting: a factory licence under state legislation, and pollution control consent in two separate stages — consent to establish before construction and consent to operate before production.
- Concessional rate and incentive eligibility assessed before you start
- Two-stage pollution consent sequenced with construction
- State factory licensing and land position addressed
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
Companies successfully established.
What is involved
Establishing manufacturing in India
Incentives and permits in parallel.
| Element | Position |
|---|---|
| Concessional tax rate | Available for qualifying new manufacturing companies. |
| Production incentive schemes | Sector specific, tied to output and investment. |
| Factory licence | Under state legislation. |
| Consent to establish | Before construction begins. |
| Consent to operate | Before production begins. |
| Small enterprise registration | For eligible benefits. |
Concessional rate conditions, incentive scheme criteria, factory licensing and pollution consent requirements are set by central and state authorities and change. All are checked for your project.
How it works
From plan to production
Consents gate construction and start-up separately.
Structure for the incentives
Whether the company qualifies for the concessional rate and any sector incentive scheme, settled before incorporation where possible.
Permit the site
Land position confirmed, consent to establish obtained before construction, and the factory licence applied for.
Commission and operate
Consent to operate obtained before production, employer registrations completed and tax and trade registrations finalised.
- Products to be manufactured
- Whether the company is newly incorporated
- Process description and equipment list
- Site and state, and land ownership position
- Power, water and effluent requirements
- Emissions and waste expected
- Whether hazardous processes are involved
- Planned capital expenditure and phasing
- Whether a sector incentive scheme applies
- Expected workforce numbers
- Whether raw materials are imported
- Target production start date
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Concessional rate eligibility assessment
- Sector incentive scheme identification
- Entity incorporation structured for the incentives
- Factory licence application support
- Consent to establish co-ordination
- Consent to operate co-ordination
- Employer and labour registrations
- Trade and tax registrations for manufacturing
Not included, quoted separately
- Government and consent fees, paid at cost
- Land acquisition and lease costs
- Environmental consultants and studies
- Architectural and engineering design
- Construction and plant
- Incentive scheme application drafting by specialists
- Audit fees
- Tax advice outside India
Verify independently
Official Indian authorities
We file directly with these bodies on your behalf.
Questions
India manufacturing setup — FAQs
Is there a lower tax rate for manufacturing?
A concessional corporate rate is available for qualifying new manufacturing companies, subject to conditions including when the company was incorporated and when production begins.
What are production incentive schemes?
Sector-specific support tied to incremental output and investment. Eligibility is narrow and application-based, and we assess it rather than assuming.
What is the two-stage pollution consent?
Consent to establish is required before construction, and consent to operate before production. Building without the first is a serious problem.
What usually delays a project?
The consents and the factory licence, and in many cases the land position. Incorporation is not the constraint.
Does small enterprise registration help?
It can unlock payment protection and scheme benefits for eligible enterprises. We assess whether you qualify.
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