{"id":40489,"date":"2022-02-24T12:03:02","date_gmt":"2022-02-24T06:33:02","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=40489"},"modified":"2022-08-31T11:39:57","modified_gmt":"2022-08-31T06:09:57","slug":"legal-aspects-of-plastic-raw-material-manufacturing-business","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/legal-aspects-of-plastic-raw-material-manufacturing-business\/","title":{"rendered":"Legal Aspects of Plastic Raw Material Manufacturing Business"},"content":{"rendered":"\n<p>The plastic Industry is making a\nmeaningful contribution to the economic growth of various prominent sectors:\nAgriculture, FMCG, Textile, Automotive, Electronic, etc. It is one of the most\nrapidly thriving sectors in India. A wide range of plastic raw materials is\nbeing produced to fulfill the material needs of various sectors of the economy.\nThese polymeric materials are classified as engineering, commodity, and\nspecialty plastics. Commodity plastics serve as the primary products that\naccount for the bulk of the plastics &amp;, in turn, for the petrochemical\nsector. Commodity plastic usually comprises Polypropylene (PP), Polyethylene\n(PE), Polystyrene, and Polyvinyl Chloride (PVC). Entities are willing to\nundertake Plastic Raw material manufacturing as their primary business needs to\nfulfill various legal implications. This write-up shall provide needful\ninformation regarding the same in brief. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Plastic\nRaw Material Manufacturing Business (Mandatory Licenses and Permits) <\/h2>\n\n\n\n<p><strong><em>Following section briefs out mandatory\nbusiness licenses and registration for operating Plastic raw material\nmanufacturing unit in India <\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Business registration\/Incorporation certification<\/h3>\n\n\n\n<p>Securing Business registration is the\nforemost step in establishing a legalized production facility in India. It\nallows business owners to stay organized and compliant on account of the\nfollowings; <\/p>\n\n\n\n<ul><li>Management\/Decision\nMaking<\/li><li>Financial\ndisclosure<\/li><li>Annual\nfiling of return <\/li><li>Appointing\ntop officials <\/li><li>Drawing\nagreement with third-parties <\/li><\/ul>\n\n\n\n<p>There is array of business structures\navailable to the business owners that comes under different legislations as\nshown below: <\/p>\n\n\n\n<ul><li>OPC\n(One person company) &#8211; Companies Act, 2013<\/li><li>Private\nLimited Company: Companies Act, 2013<\/li><li>Partnership\nFirm: Partnership Act, 1932<\/li><li>Limited\nLiability Company: LLP Act, 2008<\/li><\/ul>\n\n\n\n<p>Each business structure above revolves\naround different pre and post-registration compliances. So, it is advisable to\nhire a professional before initiating registration formalities. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Factory license<\/h3>\n\n\n\n<p>Factory license comes under the ambit of <strong>Factory Act, 1948<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Factories_Act,_1948_(India)\"><strong>[1]<\/strong><\/a><\/sup>. All the production facilities must register under this Act and thus, secure <a href=\"https:\/\/corpbiz.io\/factory-license\"><strong>Factory license<\/strong><\/a> before stating the production undertakings. The authority of grating the factory license is in the hand of the Chief <strong>Inspector<\/strong> of Labor Commissioner Organization. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Pollution NOC (CTE and CTO from SPCB)<\/h3>\n\n\n\n<p>Pollution NOC is a mandate for entities\nprone to excessive emission of pollutants. Thus, it is also mandatory for\nPlastic Raw Material manufacturers. It is granted by Pollution Control Board\nsituated in the respective state. The grant of Pollution NOC is classified into\ntwo mandatory consents that need to be secured in a subsequent manner after\ncomplying with underlying conditions<\/p>\n\n\n\n<ul><li>CTE:\nConsent to Establish <\/li><li>CTO:\nConsent to Operate <\/li><\/ul>\n\n\n\n<p>Since a lot of paperwork revolves around\nthese consents, it is ideal to approach an expert and proceed accordingly. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Consent under Plastic Waste Management Rules, 2016<\/h3>\n\n\n\n<p>Consent under Plastic Waste Management\nRules, 2016 is a mandatory requirement for PIBOs, i.e., Producers, Importers,\nand Brand owners. The plastic raw material facilities also come under the PWM\nRules, 2016, and thus required to avail authorization from SPCB via Form III. <\/p>\n\n\n\n<p>Form III is an application form and seeks\napplicants to facilitate the following details: <\/p>\n\n\n\n<ul><li>Unit&#8217;s\nname &amp; location<\/li><li>Plant&#8217;s\nproduction facility<\/li><li>Previous-held\nregistration number, if available<\/li><li>Detail\nabout registration certificate conferred by District Industries Centre, if\navailable<\/li><li>The\noverall cost of the production facility <\/li><li>Year\nof commencement of production<\/li><\/ul>\n\n\n\n<p><strong><em>The fully filled Form III shall be\nsubmitted along with documents as shown below: <\/em><\/strong><\/p>\n\n\n\n<ul><li>Proof\nregarding the sale executed in more than two states (Tax invoice\/GST etc.) <\/li><li>Valid\nconsent conferred under Air &amp; Water Act <\/li><li>Documents\nrelating to <strong><em>EPR Action Plan<\/em><\/strong>*<\/li><li>The\ndocument conferred by ULB\/respective state authority related to the involvement\nof PIBO\/WMA (as applicable) <\/li><li>Registration\nconferred by State pollution board\/PCC <\/li><li>Agreement\nof PIBO\/WMA with certified Plastic waste processor (as applicable)<\/li><li>Agreement\nof PIBO with WMA (as applicable)<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">EPR Action Plan* <\/h3>\n\n\n\n<ul><li>EPR Action Plan relating to PWM has to be furnished by PIBOs functioning in more than two states) for securing consent from CPCB. PIBOs shall meet <a href=\"https:\/\/corpbiz.io\/epr-registration\"><strong>EPR<\/strong><\/a> in all the States\/union territories in which they are launching their products. <\/li><\/ul>\n\n\n\n<ul><li>EPR\nTarget for a certain state shall be equivalent to the amount and type plastic\nlaunched by them in the given market (market (post consumer waste) in the\nspecific State \/UT.<\/li><li>In\n2019, CPCB formulated the format for EPR action plan required for securing\nregistration as per guideline of <strong>PWM Rules (Annexure I). <\/strong><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Fire\nNOC<\/h3>\n\n\n\n<p>Fire NOC is a certificate granted by the\nFire department of the concerned Fire department after inspecting and\nvalidating the building&#8217;s fire assistance and the machines installed to avoid\nfire-related accidents. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST\nRegistration <\/h3>\n\n\n\n<p>Following is the list of businesses that are mandated to secure <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> regardless of their turnover: <\/p>\n\n\n\n<ul><li>Having\nyearly turnover of over forty lakhs ( ten lakhs for N-E states,, Jammu and\nKashmir, HP &amp; Uttarakhand)<\/li><li>Input\nService Distributor\/ Casual taxable person<\/li><li>Inter-state\nsupplier of commodities &amp; services<\/li><li>Non-resident\ntaxable person <\/li><li>Suppliers\nof goods by way of an e-commerce portal<\/li><li>Taxpayers\nfalling under RCM i.e., Reverse Charge Mechanism<\/li><li>Web-based\ndata access or retrieval service provider<\/li><li>TDS\/TCS\ndeductor <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>The legislations for the plastic sector has been formulated and amended numerous times to reduce the environmental impact. Entities, including Plastic Raw Material manufacturers emitting excessive pollution and plastic waste, confront stringent compliances compared to other industries in India. The ever-evolving nature of these norms has made it hard for Plastic Raw material entities to stay compliant and organized. This is where expert assistance comes into play, as it can keep these entities abreast of all the legal formalities and fulfill impending norms with authenticity.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/role-and-duties-of-pro-under-ewm-rules\/\">Role and Duties of PRO under EWM Rules\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The plastic Industry is making a meaningful contribution to the economic growth of various prominent sectors: Agriculture, FMCG, Textile, Automotive, Electronic, etc. It is one of the most rapidly thriving sectors in India. A wide range of plastic raw materials is being produced to fulfill the material needs of various sectors of the economy. These [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":40493,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2042],"tags":[2141],"acf":{"service_id":"499"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":9000,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40489"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=40489"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40489\/revisions"}],"predecessor-version":[{"id":47810,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40489\/revisions\/47810"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/40493"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=40489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=40489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=40489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}