Scrap Business

Overview of Computer Hardware Scrap License Requirements

calendar17 Aug, 2022
timeReading Time: 4 Minutes
Computer Hardware Scrap License

Computers and other EEE (Electric and Electronic Equipment) have become the basic necessity of human life with computers being used by children from a very young age to adults. With this rise in the utilisation of computers, the waste relating to computer hardware is also increasing day by day with 82% of India’s E-Waste comprising Personal devices including computers.

Therefore, it is very important to encourage and promote the various type of businesses that are involved in reducing this waste one of them being the Computer Hardware Scrap business which requires a proper Computer Hardware Scrap License. The process of acquiring this license is explained in this blog in detail to assist the business.

Market overview of Computer Hardware Scrap business

The mental scrap trading business, which also includes the parts of Computer Hardware, has a worth of over 500 billion dollars all over the world, among which India contributes only 2.2%, which is estimated up to 11 billion dollars. In 2013-2014, India generated around 26.9 million tonnes of steel out of scraps. But seeing the increase in waste computer hardware scrap market is estimated to increase up to 13% in India. Further, the market position of the scrap business is estimated to increase from 70% to 100%.

Pre-requirement for acquiring Computer Hardware Scrap License

Before setting up a Computer Hardware Scrap Trading business scrap dealers have to consider many things, including: –

  1. Selecting the scrap parts to collect.
  2. Selecting a proper site for conducting business.
  3. The preferred location should be simply available by public transportation.
  4. Reusing waste materials into raw materials.
  5. Creating new products from scratch.
  6. Market Transactions of raw material production.

Process of acquiring Computer Hardware Scrap License

Initially, the scrap dealer has to get authorisation for the units by abiding by the following guidelines to list a business under Partnership Act, 1932, the Companies Act, 2013 or LLP Act, 2008, for which the scrap dealer must get authorisation;

  • agreement with the third party
  • Financial Disclosure
  • Employing top officials
  • Annual filing of return
  • Management

In case the scrap dealer is setting up a factory, he/she needs to acquire a Factory license stipulated under Factories ACT, 1948[1], which is authorised by the Chief Inspector of Labour Commissioner Organisation after the scrutiny of the unit. Furthermore, after the license is granted, the Scrap dealer is required to provide details on production.

  • The Manufacturer, first of all, has to apply for a GST number which is authorised via GSTIN from the Online Official authority website. 
  • The scrap dealer is also mandated to acquire the authorisation of a Digital signature certificate that will allow the truck to run easily across the different states. 
  • Medium-small and micro-enterprise (MSME) are also mandatory to register the unit/plant as an enterprise. 
  • After this, scrap dealers are also required to acquire the Certificate of Consent which is of different categories given at two stages, The Certificate of Consent is authorised by State Pollution Control Board/Pollution Control Committee in two parts that are Consent to Establish and Consent to operate.
  • Consent to Establish is granted to the manufacturing operation before the Industry is established under the Air (Prevention and Control of Pollution) Act, 1981 and the Water (Prevention and Control of Pollution) Act, 1974
  • Consent to Operate is granted to the Industry before it is ready to operate under the Air (Prevention and Control of Pollution) Act, 1981 and the Water (Prevention and Control of Pollution) Act, 1974
  • Last, registration from the government department is also needed so that scrap dealings can transpire freely. 
  • Further, authorisation from the Local municipal area is required to start a computer hardware scrap business. 

Documents required for Consent to establish

1. Site plan with photos showing the distance between the suggested site and the nearest residential area and water body only applicable for Industries under Orange and Red categories.

2. Small Scale Industry Certificate of Partners/Directors, 

3. Industry Department Certificate

4. Vents/ Stacks/ Chimney and emission spots with labels 

5. The layout plan shows the drainage/pipeline and final disposal point for liquid effluent.

6. Details on Collection, storage, and discarding of solid waste

7. Information on the sum of existing open land in the industrial area for Green Belt Development, landscaping, and other purposes.

8. Building blueprints with machinery details compiled by a knowledgeable person.

9. Total area of construction

10. Detailed report on the project, which includes details of the production process, process flow diagram, chemical formulas, emission, effluent, and hazards/solid waste sources.

11. Diesel Generator Specifications

12. Raw material list with daily MTD/monthly quantity

13. Product/by-product list with daily MTD/monthly quantity

14. In the case of chemical industries, a Material Safety Data Sheet is required.

15. Permission from the state’s groundwater authority.

16. Common Biomedical Waste Treatment Facility Membership Letter (for healthcare facilities, Pharmaceutical units).

Documents required under Consent to Operate

  1. Electricity Bill
  2. Proof of ownership of lands like rent agreement or lease agreement
  3. Water Bill
  4. Pan Card of the authorised person
  5. The Aadhar Card of the Authorised person
  6. Municipality or Industry license
  7. Health Trade License
  8. Site/Layout Plan
  9. Chartered Accountant Letter on the finances of the project
  10. GST certificate
  11. Environmental Statement prescribed under form-V
  12. Letter of Authorisation
  13. Factory/Trade License
  14. Proof of Registration of unit

Apart from these documents, Scrap dealers also have to present Consent to establish as well as process the Layout plan and solid waste effluent, hazardous waste, and fuel gases latest analysis report.

Validity and Renew of Consent Certificate

The authorisation for Consent to establish is non-renewal, therefore, the scrap dealer has to file for fresh authorisation whereas for Consent to operate the validity period depends on the category of Industry that’s is 5 years for the Red category of Industries, 10 years for Orange category of Industries and 15 years for Green Category. For renewal of the Consent to Operate Certificate scrap dealer has to apply within 90 before the expiry of the validity period of the Certificate. The consent to operate will only be renewed in the cases where there are no changes in raw material, procedure, or total financial plan of the scrap business.


The process of acquiring a Computer Hardware Scrap License is very similar to that of the metal scrap business due to similarities in the component found in the Computer hardware waste. Scrap dealers had to obtain many certificates including Consent to operate, Consent to establish, EPR Registration, etc. due to sensitive nature of the business and its potential to cause more environmental damage.

Read our Article:Aluminium Scrap Cable Import License in India

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