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License & Approvals Required For Establishing A Textile Manufacturing Unit

The Textile and apparel industry plays a pivotal role in the Indian economy through its significant contribution to the country’s industrial output, employment generation and export earnings. The industry has achieved a noteworthy position as one of the major exporters of varied textile and apparel products including cotton, natural and manmade fibre, silk based textiles, knitted apparel and accessories among others. India currently commands a share of about 4.5% in the world exports of textiles. This is still a very nominal share despite the textile sector in India being one of the oldest sectors and has witnessed revolutionary changes in transforming the industrial and economic landscape of the country.

The Government is making rigorous efforts to restructure and to revamp the Indian textile and apparel industry under the ambit of its highly ambitious ‘Make in India’ program which envisages making India as a ‘manufacturing’ and ‘sourcing hub’ in the coming times.

If you are planning to set up a Textile Manufacturing Unit (for Yarn, Fabric or MadeUp), following licences and approvals are required under applicable laws:

  1. Business Registration (forming a Private Limited Company, LLP etc)

  2. Trademark Registration for trade name and logo

  3. Rent or Lease Agreement for the factory premises

  4. Factory License under the Factories Act, 1948

  5. Approvals under labour laws

  6. GST Registration

  7. MSME Certificate

  8. Other licences or registration such as Provident Fund Registration, Fire Safety License, Trade License or Shops and Establishment Act

Please feel free to get in touch if you have any doubts or need clarifications.

We wish you luck for your business. Happy Reading!


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Author: AYTA

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