Setting up Tissue Paper Making Business

Narendra Kumar

19 Oct, 2019

Legal Registrations Required for Setting up Tissue Paper Making Business

A sub-segment of the paper industry, tissue paper making can be undertaken by interested investors on small-scale as well as large-scale. Paper is a product that is derived from wood. Tissues are used in the Food & Beverage industry as well as hygiene-related areas in other industries. Tissues being highly recyclable and biodegradable products, the demand for tissues in the commercial sector and as well as individual consumers are ever going to increase until and unless an alternate replacement is discovered. With increasing information, knowledge and awareness related to hygiene as well as environmental issues, this industry is definitely growing leaps and bounds.

Potential buyers of tissues include hospitals, hotels, restaurants, institutions, and households too. Different types of tissues that are sold and bought include – paper towels, napkins, toilet paper and facial tissues.

What is the Market Potential for a Tissue Paper Making Enterprise in India?

Facts and Figures:

• About 83,048,116 rolls of tissue paper is produced in the world every day
• Wood from about 384 trees is required to make tissue papers that a man uses on an average in his lifetime.
• The Indian tissue paper industry is growing at a rate of almost 20-25% annually through the figure is region-dependent. It is because of its tremendous potential the industry is moving from small-scale manufacturing to large-scale
• Consumption of tissue paper in India is currently estimated at about 1.25 lakh per year.

Also the fact that this product has appeal not only in the domestic market, there are export potentials too for the industry.

What are the Required Tissue Paper Making Business licenses and Registrations?

The following licenses and registrations are mandatory for starting a tissue making business in the country.

• Registering the business– the main purpose of business registration is that it provides legal status and provides recognition. It can be done through Company Registration with ROC. It is one of the main bodies that help foster the growth of business culture in the country. This is the basic and the first step towards setting up a business unit. The certificate authenticates the existence of the company meaning that the company has been incorporated to carry out legalized and ethical business in the country.
• Trade license from the local municipal authority– the licensing department of the municipal body issues this license. Without this license, no factory can start work in a particular area.
• No objection certificate from the State Pollution Control Board – this is again a pre-requisite for business entities and industrial units before starting their operations. All factories need to seek consent to establish their units that endorse that the factory will not indulge in activities that would pollute the air, water, and other natural resources nearby. It also means that they will not cause any type of harm with their manufacturing process to the flora and fauna of the place.
• Factory license – under the Factory Act 1948^[1], the business owner needs to apply for this license to the Chief Inspectorate of Factories in the location where the manufacturing unit is being proposed. Certain documents are required to be submitted like the approved building plan, brief description of the manufacturing process, safety measurement on the factory premises, allotment letter of the plot, No objection certificate from the fire department, Pollution NOC, production flow process flow charts, list of machinery that can be hazardous to the workers, lease agreement, partnership deed, list of employees along with the filled up forms.
• Udyog Aadhaar MSME registration
• GST Registration for taxation purpose. For all businesses that earn more than Rs. 20 lakh annually or 10 lakh in special category states need to be registered under the Goods and Services Tax. It also applies to companies involved in e-commerce activities that sell their products or services online. For business houses that indulge in inter-state business transactions also need to get themselves registered under GST.
• Import-export code for all manufacturers who wish to export goods or services from India to other destinations. This is a must for sending shipments abroad and receiving payments against the same from other countries. The code is generated once and is used by the business entity for a lifetime.