{"id":44545,"date":"2022-06-17T12:19:24","date_gmt":"2022-06-17T06:49:24","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=44545"},"modified":"2022-07-13T16:19:51","modified_gmt":"2022-07-13T10:49:51","slug":"how-to-start-a-metal-scrap-trading-business","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-start-a-metal-scrap-trading-business\/","title":{"rendered":"How to start a Metal Scrap Trading business?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Harmful waste, whether it is plastic waste, metal waste, E-Waste, or Solid waste, is increasing day by day in India, reaching up to 62 million tonnes of waste each year, with Delhi topping the list with 30.6 lakh tonnes of which 42 million, about 70% are collected, among which 12 mil tonnes are treated, and 31 mil tonnes are dumped in landfill sites.<\/p>\n\n\n\n<p>With this much\nwaste production, it is important for India to promote and authorize more waste\nmanagement businesses like Metal Scrap Trading Business which is not only\nimportant for the environment to control and manage the mounting amount of\nmetal scraps in India but also important for developing and growing the market\nof India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Metal Scrap Trading Business<\/h2>\n\n\n\n<p>Scrap is defined\nin the Industrial sector as the material, either metal or other substance that\ncannot be repurposed. Metal Scrap trading Business transaction of scrap metal\nat a low price for the purpose of management and recycling into the sellable\nproduct, with the steel and Aluminium being the most recycled metal. This\nbusiness is one of the most commercially successful industries which require a\nminimum initial investment.<\/p>\n\n\n\n<p>The process used\nin the Metal scrap Trading Business involves gathering and collecting metal\nscrap that is declared waste. After collection of &#8220;worthless metal,&#8221;\nthey are melted down and turned into raw material. Metals in this business are\nmelted and moulded into a new product, which is then sold to recyclers at a low\nprice. There are many advantages of the scrap trading business, including: &#8211;<\/p>\n\n\n\n<ul><li>Less Energy\n     Consumption<\/li><li>Fewer\n     Emissions<\/li><li>Environment\n     sound<\/li><\/ul>\n\n\n\n<p>The mental scrap\ntrading business is worth over 500 billion dollars globally among, with only 11\nbillion dollars, that is India contributes 2.2%. In 2013-2014, 26.9 million\ntonnes of steel were generated out of scraps in India. It is also estimated\nthat the scrap market will increase up to 13% in India. Apart from this, the\nprofit margin of the scrap business is estimated to be 70% which may increase\nto 100%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Most Common metals used in Metal Scrap Trading Business<\/h3>\n\n\n\n<p>While\nestablishing Metal Scrap Trading Business, business owners have to first check\nthe ferromagnetism of the metal. Some of the most commonly used metals are: &#8211;<\/p>\n\n\n\n<ol><li>Iron and alloy, and steel which has a wide range of application<\/li><li>Copper is another most used scrap which is non-ferromagnetic and weighs more than iron.<\/li><li>Aluminium is less valuable and is a lighter metal.<\/li><li>Lead which is a soft and heavy metal used commonly in bullets<\/li><li>Bronze which is a copper alloy which is less valuable and is lighter weight.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Pre-requirement for setting up Metal Scrap trading\nbusiness<\/h3>\n\n\n\n<p>There are many\nimportant things to consider before setting up a Metal Scrap Trading business:\n&#8211;<\/p>\n\n\n\n<ol><li>Choosing which scraps to collect.<\/li><li>Choosing an appropriate location for the business centre.<\/li><li>The chosen location should be easily accessible by public transit.<\/li><li>Repurposing      discarded materials into raw resources.<\/li><li>Creating new      products from scratch.<\/li><li>Market Sales      of newly-produced goods<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Process of Setting up metal scrap trading business<\/h3>\n\n\n\n<p>First, the owner\nhas to register the units as per the registration process of different\ncategories of the organization, and Manufacturers must comply with the\nfollowing regulations in order to register a company under the Companies Act,\n2013, Partnership Act, 1932, or LLP Act, 2008, for which the business owner\nmust get registration.;<\/p>\n\n\n\n<ul><li>Financial\n      Disclosure<\/li><li>Appointing\n      top officials<\/li><li>Management<\/li><li>Drafting\n      agreement with the third party<\/li><li>Annual\n      filing of return<\/li><\/ul>\n\n\n\n<p>Suppose the owner is setting up a factory. In that case, he\/she needs to acquire a <a href=\"https:\/\/corpbiz.io\/factory-license\"><strong>Factory license<\/strong><\/a>, which is permitted by the Chief Inspector of Labour Commissioner Organisation after the inspection of the unit as stipulated under Factories ACT, 1948. Furthermore, after the license is granted Manufacturer is required to provide production understating.<\/p>\n\n\n\n<ul><li>After this      Manufacturer is also required to acquire the Certificate of Consent which      is of two different categories given at two stages, The Certificate of      Consent is obtained in two parts Consent to establish <strong>(Under the Water      (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and      Control of Pollution) Act, 1981<\/strong><sup><a href=\"https:\/\/cpcb.nic.in\/water-pollution\/\"><strong>[1]<\/strong><\/a><\/sup>, manufacturers are required to acquire the      Consent to Establish before the establishment of the Industry) and Consent      to operate (Consent to operate is issued by the State Pollution Control      Board once the Industry is established and is ready to operate after      acquiring Consent to establish).<\/li><li>After applying for a Certificate of Consent, the Manufacturer is also required      to apply for a GST number which is acquired from GSTIN from the official      government site.&nbsp;<\/li><li>The owner is      also required to register under a Digital signature certificate that will      permit the truck to run freely across the different states.&nbsp;<\/li><li>MSME      (medium-small and micro-enterprise) is also required to register the      unit\/plant as an enterprise.&nbsp;<\/li><li>Lastly,      registration from the government department is also needed so that scrap      transactions can happen freely.&nbsp;<\/li><li>Apart from      this, permits from the Local municipal area are required to start a metal      scrap trading business.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Documents required for Consent to establish<\/h3>\n\n\n\n<ul><li>Site plan with photos depicting the distance between the proposed site and the nearest residential area and water body (applicable for Orange and Red categories).<\/li><li>SSI Certificate of Partners\/Directors, Industry Department Certificate<\/li><li>Vents\/ Stacks\/ Chimney and emission sites with Nos. The layout plan shows the drainage\/pipeline and final disposal point for liquid effluent.<\/li><li>Collection, storage, and disposal of solid waste<\/li><li>Total available open land in the industrial complex for Green Belt Development, landscaping, and other purposes<\/li><li>A qualified person drew building blueprints with machinery details.<\/li><li>Total constructed area<\/li><li>The project report includes production process information, process flow diagram, chemical formulas, and emission, effluent, and hazards\/solid waste sources.<\/li><li>Water usage breakdown and water balance<\/li><li>Effluent \/ Sewage Treatment Plant Specifications and Flow Diagram<\/li><li>Boiler type, fuel used, and quantity<\/li><li>Specifics on air pollution controls<\/li><li>DG Specifications<\/li><li>Raw material list with daily MTD\/monthly quantity<\/li><li>Product\/by-product list with daily MTD\/monthly quantity<\/li><li>In the case of chemical industries, a Material Safety Data Sheet is required.<\/li><li>Permission from the state&#8217;s groundwater authority.<\/li><li>Common Biomedical Waste Treatment Facility Membership Letter (for healthcare facilities, Pharmaceutical units).<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Documents required under Consent to Operate<\/h3>\n\n\n\n<ol><li>Electricity Bill<\/li><li>Proof of ownership<\/li><li>Water Bill<\/li><li>Pan Card and the Aadhar Card<\/li><li>Municipality or Industry license<\/li><li>Health Trade License<\/li><li>Site Plan<\/li><li>CA Letter on the total cost of the project<\/li><li>FSSAI Certificate (for food-related business)<\/li><li>GST certificate<\/li><li>Environmental Statement (form-V)<\/li><li>Authorization Letter<\/li><li>Factory\/Trade License<\/li><li>Proof of Registration of unit<\/li><\/ol>\n\n\n\n<p>Apart from these\ndocuments, the Manufacturer also has to show Consent to establish,\nManufacturing process Layout plan and solid waste effluent, hazardous waste and\nfuel gases latest analysis report.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>When establishing a metal scrap trading business, any business owner has to keep in mind the basic requirements of the listed documents and process. So as to keep the government authorities up to date and aware of the activities taking place in the business, this also helps the manufacturers take advantage of the new initiatives that the government comes up with to help businesses involved in businesses helping environmental protection and waste management.&nbsp;&nbsp;<\/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\/cpcb-certification-for-compostable-plastic-sellers\/\">CPCB certification For Compostable Plastic Sellers<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Harmful waste, whether it is plastic waste, metal waste, E-Waste, or Solid waste, is increasing day by day in India, reaching up to 62 million tonnes of waste each year, with Delhi topping the list with 30.6 lakh tonnes of which 42 million, about 70% are collected, among which 12 mil tonnes are treated, and [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":44548,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[888],"tags":[2434],"acf":{"service_id":"215"},"authorName":"Muskaan Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/05\/MicrosoftTeams-image-14.jpg","authorDescription":"Muskaan has completed her BA.LLB and LLM, gaining vast legal knowledge and expertise. She has keen interest in legal research and content writing, having prior experience of publishing numerous research papers in international journals on Environmental Laws and Corporate Laws.","postViews":20347,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/44545"}],"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\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=44545"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/44545\/revisions"}],"predecessor-version":[{"id":45333,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/44545\/revisions\/45333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/44548"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=44545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=44545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=44545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}