“The real competitive advantage will come to business and industries who differentiate their product from others in terms of Quality, Assurance and Safety”
License standards & certifications are necessary from both perspective i.e. Self-driven (to have competitive advantage) as well as government stipulations ( to ensure adherence to social security measures).
Self-driven approach should be to gain competitive advantage whereas government stipulations are requirement to have standards and certifications, licenses etc. so that no compromise to social security takes place while performing business operation and at the same time consumers should also have an assurance that the product which they are buying is up to mark.
Businesses need to focus on the things which are really important from the view point of operating efficiency and which yields quality product that provides an assurance to consumers that the products are at par with prescribed standards. This will at the same time yields competitive advantage as well as helps business in managing factors for inefficient performance.
There are some segments where setting up a business unit requires prior approval in the form of License. This requirement is there because these segments are closely associated with the public health and safety and hence it is essentially required that business units should adhere to prescribed standard procedures and policies. The grant of License is done after precheck of abilities of business unit and also regulates the post commencement check on conditions for public health and safety. The example of some of these segments are;
- Drugs or medicine Industry
- Food Industry
Commonly there are following category of license and standards which are supposed to be obtained by business units;
FSSAI License /Registration
Every food business operator whether he is Trader or manufacturer or restaurant owner or any other business unit who deals into the business of products related to food articles, is supposed to obtain Either FSSAI Registration or License depending upon its category and Expected turnover limit. The license is of 02 types Either state License or Central License. Business units having turnover more than the prescribed limit and or operating in more than 01 state are supposed to obtain Central License otherwise state License. The License or registration both have certain period of validity and requires renewal once it gets expired. Also there are certain prescribed compliance procedures which are supposed to be adhered by the Food Business units and have to submit periodic compliance report with FSSAI authorities. Also units are subject to inspection by FSSAI authorities any time during the tenure of license or registration.
Either you are involved into the business of Drugs or Cosmetics, having license from Respective state Drug Control Department is a pre- condition to commence your business unit.
Drug and cosmetics fall under such product category that if conditions related to manufacturing process and storage are not adhered it can cause damages to health even, So putting restrictions and related check thereon is necessary and the same thing is done by regulating the trade through grant of license.
The process for obtaining Drug License can be summarized into following three steps
- Filing of Applications
- Inspection by Drug Inspector
- Grant of Licence
Drug license application is subject to state legislature and hence separate application will be filed for each state of operation. Also If you have more than one business place even in the same state, where drugs are stored or traded from, there is requirement to obtain separate license for each of those places in the same state.
BIS stands for Bureau of Indian standards. It is national body constituted for Setting up of standards related to Products and systems.
BIS grants either “license” to use the “Standard Mark” or grant “certificate of conformity” in relation to “Standard Mark” so far as products are concerned. Currently there are more than 20000 standards developed and in use for products some of which are as follows
- Chemical Goods,
- Electrical Goods
- foods and agriculture produce
- Medical equipment
- Electronic goods
- electrotechnical Goods etc.
Similarly, so far as systems are concerned, BIS issues “certificate of conformity” in relation to systems some of which are as follows;
- Quality Management System
- Environmental Management System
- Food Safety Management System
- Energy Management System
- Occupational Health & Safety Management system
- Medical Device Management system.
AGMARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards assuring thereby the quality, safety and reliability of product.
The AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products like Vermicelli. The presence of Agmark on a product is an assurance of conformity to the specifications prescribed therein in relation to quality, safety and reliability of agriculture produce.
Fire Department permits
All residential, Commercial, Industrial buildings including Educational Institutions, Hotels, Multiplex, Shopping Malls etc. have to obtain NOC from fire department of respective state even prior to commencement of construction activities.
Pollution control Permit
For prevention and control of pollution and maintain and restoring the quality of Air and water, There is a requirement for every industry (as categorized) to apply for consent to operate or establish the industry.
These are state level requirement and applications need to be filed with respective state authority for grant of consent. The industries are classified and consent category will also vary as per classification applicable.
Any establishment intending to employ 20 or more than 20 labour on contract basis then it is supposed to obtain registration from the labour department. The limit may vary depending upon state of operation.
Similarly any contractor who deploy 20 or more than 20 labour in any establishment is supposed to obtain labour license in respect of every such establishment.