🧾 Introduction: Why Certification Matters in the Chemical Industry
If you’re planning to start or scale a chemical business in India — whether it’s home-based, small-scale, or export-oriented — you need to be legally compliant.
Why?
Because the chemical sector is highly regulated, and your business can face:
- 🚫 Fines from pollution control board
- ❌ Rejection from eCommerce & B2B portals
- 📦 Shipment holds at customs
- 🔍 Inspections from health departments
- 💸 Loss of government tenders
But don’t worry — in this guide, we will cover all the important licenses and certifications you need for running a chemical manufacturing or trading business in India.
We’ll also explain:
- ✅ What each certification is for
- ✅ How to apply
- ✅ Who needs it
- ✅ Fees and validity
- ✅ Tips to avoid delays
✅ 1. Udyam (MSME) Registration
If you’re starting a small chemical unit, Udyam registration (previously known as Udyog Aadhaar) is mandatory.
🧾 Why You Need It:
- Required for availing government subsidies
- Needed for applying loans under CGTMSE, PMEGP
- Makes you eligible for government tenders
- Helps you register on GeM portal for bulk supply
How to Apply:
- Visit https://udyamregistration.gov.in
- Use your Aadhaar, PAN, and business details
- Completely free of cost
Time: Instant
📄 Output: MSME Certificate (with Udyam Registration Number)
✅ 2. GST Registration (Mandatory for Online / B2B Sales)
If you’re selling:
- Online (Amazon, Flipkart, Meesho, Shopify)
- To wholesalers/distributors
- Or your turnover exceeds ₹20 lakh/year
…then GST registration is compulsory.
Documents Required:
- PAN, Aadhaar
- Address proof of business premises
- Bank statement
- Business photos
🧾 Apply at: https://www.gst.gov.in
Cost: Free (government) or ₹1,000–₹2,000 via CA
Time: 3–7 working days
✅ 3. Trade License from Local Authority
Every manufacturing or trading business must have a municipal trade license.
Why Needed:
- Legally allows you to manufacture/store chemicals in a locality
- Required for opening current bank account
- Needed for police verification and NOC
Apply from your municipality / panchayat office based on your workshop location.
Cost: ₹500–₹2,000/year
Time: 5–10 days
📌 Renewal: Every year
✅ 4. Pollution Control Board NOC
This is one of the most important licenses if you’re producing chemical goods.
There are 3 categories based on pollution levels:
Category | Examples | NOC Required? |
---|---|---|
White | Handwash, floor cleaner, detergent | 🟢 Usually No |
Orange | Toilet cleaner, phenyl, adhesives | 🟠 Yes |
Red | Paints, acids, industrial solvents | 🔴 Yes |
How to Apply:
- State Pollution Control Board (SPCB)
- Submit details of waste generation, water usage, storage safety
⏱ Time: 15–30 days
💰 Cost: ₹5,000 to ₹25,000 (based on size & product)
📄 You’ll receive a Consent to Establish (CTE) and later, Consent to Operate (CTO).
✅ 5. BIS Certification (Optional but Powerful)
Bureau of Indian Standards (BIS) certification is not mandatory for most chemical products, but having it gives you a huge advantage in:
- Government tenders (CPWD, Railways)
- Large B2B orders
- Export market (especially UAE, Nepal, Africa)
Common products with BIS standards:
- Phenyl concentrate
- Cleaning acids
- Floor cleaners
- Detergent powder
Apply at: https://www.bis.gov.in
Cost: ₹25,000–₹40,000
Time: 30–45 days
📌 Testing at BIS-accredited labs is mandatory
✅ 6. GHS Labeling & MSDS Compliance
If you’re selling or exporting any chemical-based product, GHS (Globally Harmonized System) labeling is mandatory.
You must also maintain a Safety Data Sheet (SDS).
GHS Label Must Include:
- Product name
- Hazard symbol (if corrosive, flammable, etc.)
- Signal word (Danger/Warning)
- Batch number
- Manufacturer details
- Precautionary phrases
🧪 MSDS must include:
- Composition
- Toxicology
- First-aid, storage, fire measures
- Ecological info
This is essential for customs clearance and exports, especially to Europe (REACH), UAE, and USA (OSHA).
✅ 7. REACH Registration (For Europe Exports)
If you plan to export chemicals to the European Union, you must comply with REACH regulations.
Even small businesses must register if they export more than 1 tonne/year of any chemical.
How to Comply:
- Appoint an Only Representative (OR) in the EU
- Submit product data, toxicology, formulation
- Pay registration fee
⏱ Time: 2–4 months
💰 Cost: ₹1 lakh–₹5 lakh (depends on chemical type)
📌 Exports without REACH = Customs rejection in Europe.
✅ 8. GeM Portal Registration (Sell to Govt)
Want to supply your chemical products to:
- Government schools
- Army canteens
- Municipal offices
- Hospitals or panchayats?
Register on the GeM (Government eMarketplace).
How to Register:
- Visit https://gem.gov.in
- Use your GST, Udyam, PAN, and bank details
- List products with pricing and photos
Cost: Free
Time: 3–5 working days
📌 Tip: Many government tenders ask for BIS-certified phenyl, cleaner, etc.
✅ 9. FSSAI License (For Herbal / Cosmetic Use)
Planning to add herbal ingredients (like neem, tulsi, aloe vera) or natural cosmetics to your chemical line?
Then you need an FSSAI license (if consumable) or follow cosmetic rules under the Drug & Cosmetics Act.
Examples:
- Herbal handwash
- Ayurvedic toilet cleaner
- Natural dishwash paste
Cost: ₹2,000–₹5,000
Validity: 1–5 years
📌 Cosmetic labeling must include batch no., MRP, mfg/exp date, ingredients.
✅ 10. Trademark Registration (Protect Your Brand)
Once your brand starts gaining popularity, protect it by registering the brand name and logo under the Trade Marks Act.
Why Trademark?
- Prevents copycats from selling under your name
- Required for online marketplaces
- Makes your brand more trustworthy
Apply at: https://ipindia.gov.in
Cost: ₹4,500 to ₹9,000
Time: 6–12 months (but you can use ™ immediately)
📦 Optional: Factory License (For Medium-Scale Units)
If you plan to manufacture at a scale of:
- More than 10 employees
- Large machinery
- 24×7 production
Then you may need a Factory License under Factories Act from your local Labor Department.
It includes:
- Worker safety compliance
- Fire department NOC
- Building permission
🧠 Tips to Get Licenses Faster
- Hire a professional chemical consultant or CA for documentation
- Keep your MSDS and formulations ready
- Apply online — most portals now support e-verification
- Maintain a dedicated bank account and use business PAN
- Get a rental agreement or own property proof for address verification
❌ Mistakes to Avoid
- Starting production without pollution NOC = shutdown risk
- Using unapproved labels or skipping GHS pictograms
- Not updating expired certificates = GeM delisting
- No batch number or date = eCommerce rejection
- Exporting without REACH/MSDS = shipment blocked at customs
🧾 Conclusion: Get Legal, Get Profitable
You don’t need all licenses on Day 1 — but you must be aware of them and apply the right ones based on your business model.
If you’re:
Type of Business | Must-Have Licenses |
---|---|
Home-based phenyl unit | Udyam, GST, Trade license |
Exporting handwash to UAE | GST, MSDS, GHS, Pollution NOC |
Selling on Amazon | GST, GHS label, Trade license |
Govt supplier | BIS, GeM, Pollution board NOC |
Once you’re certified, you’ll find it 10X easier to grow, attract buyers, and build a lasting chemical brand.
🚀 Need Help?
👉 Download our free “Chemical Business License Checklist PDF” or book a consultation with a certified chemical compliance expert.