License, Standards & Certifications
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Both self-driven (to have a competitive edge) and government requirements necessitate licence standards and certifications ( to ensure adherence to social security measures).
Government regulations, on the other hand, are necessary to have standards, certifications, licences, etc. so that social security is not compromised while conducting business operations and at the same time consumers should have confidence that the product they are buying is up to par. The self-driven approach should be to gain competitive advantage.
Businesses need to concentrate on the issues that are actually critical to operational effectiveness and that result in high-quality products that give customers confidence that the goods meet specifications. This will simultaneously produce a competitive advantage and assist businesses in controlling the causes of poor performance.
There are some industries where establishing a company unit necessitates previous licence approval. Because these sectors are so intimately related to public health and safety, it is basically necessary that business units follow the established standard operating procedures and rules.
The licence is granted following a pre-check of the business unit’s skills, and rules govern a post-start inspection of the conditions pertaining to public health and safety. Some examples of these segments include;
- medication or drugs
- Cosmetics Industry
- Food Industry
The following categories of licences and standards are typically those that business units are required to obtain:
License/Registration with FSSAI
Every person who operates a food business, regardless of whether they are a manufacturer, retailer, restaurant owner, or part of another business unit, is required to obtain either an FSSAI registration or licence, based on their category and anticipated turnover threshold. The permit is a type 02 licence. Either a central licence or a state licence. Business units that generate more revenue than the allowed amount or operate in more than one state must receive a central licence; otherwise, they must obtain a state licence. Both the licence and the registration are good for a set amount of time before needing to be renewed.Additionally, the Food Business Units must submit a periodic compliance report to the FSSAI authorities as well as follow a number of required compliance procedures. Additionally, units may be inspected by FSSAI officials at any time while they hold a licence or registration.
Having a licence from the relevant state’s drug control department is a requirement before starting your business unit, regardless of whether you work in the pharmaceutical or cosmetic industries.
Drugs and cosmetics come into a product category that, if manufacture and storage regulations are not followed, can even harm human health. As a result, limits and other checks must be put in place, and the same is true when licencing is used to regulate the trade.
The following three steps can be used to sum up the application procedure for a drug licence.
- Application Submission
- Grant of License
- Inspection of Drug Inspector
Since state legislatures must approve drug licencing applications, separate applications must be submitted for each operating state. Also There is a requirement to obtain a separate licence for each of your business locations, even if they are in the same state, where medicines are stored or traded.
Bureau of Indian Standards is known as BIS. It is a national organisation created to provide standards for systems and products.
When it comes to products, BIS either gives “permission” to use the “Standard Mark” or “certificate of conformity” in regard to the “Standard Mark.” More than 20000 standards have been created and are currently being used for products, some of which include the following.
- Medical products
- Electrotechnical goods.
Similar to that, BIS issues “certificates of conformity” for many systems, some of which include the following:
- System of Quality Management
- System for Environmental Management
- System for Managing Food Safety
- System for managing energy
- System for Occupational Health and Safety
- Medical device administration programme.
AGMARK is a certification mark used on agricultural products in India to guarantee its adherence to a set of standards, hence guaranteeing the product’s quality, safety, and dependability.
The 205 various commodities covered by the AGMARK standards include a range of pulses, cereals, essential oils, vegetable oils, fruits and vegetables, and semi-processed goods like vermicelli. An assurance of conformance to the requirements set forth therein in respect to the quality, safety, and dependability of agricultural produce is the existence of the Agmark mark on a product.
Fire Department authorizations
Even before beginning construction, the fire department of the relevant state must grant a NOC for all residential, commercial, and industrial structures, including educational institutions, hotels, multiplexes, shopping malls, etc.
Permit for pollution control
Every industry (as defined) must apply for permission to operate or develop the business in order to prevent and regulate pollution and to preserve and restore the quality of air and water.
These are state-level requirements, and in order to obtain consent, applications must be submitted to the appropriate state authorities. The industries are categorised, and the consent category will change depending on the classification that is appropriate.
License/Registration for Workers
Any establishment that plans to hire 20 or more people on a contract basis must register with the labour department. The maximum may change based on the operation’s condition.
Similar to this, any contractor that employs 20 or more workers in any establishment is required to obtain a labour licence for each of those establishments.