India Market Entry & Compliance Advisory for Manufacturing Companies

Manufacturing in India: The Regulatory Framework

India's "Make in India" and Production Linked Incentive (PLI) programmes have made the country an increasingly attractive manufacturing destination across electronics, pharmaceuticals, automobiles, textiles, and more. The Government has streamlined factory licensing, reduced customs duties on capital goods for certain sectors, and offered significant tax incentives for new manufacturing entities. However, the interaction between factory acts, environmental clearances, land acquisition regulations, SEZ rules, customs law, and GST makes manufacturing the most regulation-intensive sector for foreign investors.

Services for Manufacturing Companies

Greenfield Manufacturing Subsidiary Formation

Setting up a manufacturing subsidiary in India requires incorporation (Private Limited Company or LLP), factory licensing under the Factories Act, environmental clearance from the State Pollution Control Board, and sector-specific approvals. We coordinate the corporate, regulatory, and compliance workstreams to ensure your factory is ready to operate within the minimum possible timeframe.

SEZ & MSME Structure Advisory

Manufacturing entities operating from Special Economic Zones (SEZs) benefit from customs duty exemptions, IGST exemptions on procurement, and income tax benefits. MSME registration unlocks priority sector lending, reduced compliance burdens, and government procurement preferences. We advise on optimal location and structure choices to maximise available incentives for your specific manufacturing activity.

PLI Scheme Applications

India's Production Linked Incentive schemes offer cash incentives of 4–20% on incremental sales for qualifying manufacturers across 14 sectors including mobile phones, electronics, pharmaceuticals, food processing, and solar panels. We assist with PLI application preparation, documentation of qualifying investment and production thresholds, and liaison with the relevant nodal ministry.

Customs Duty & Import Advisory

Manufacturers importing capital equipment, raw materials, and components into India must navigate the Customs Tariff Act, EXIM Policy, and Rules of Origin requirements for DTAA/FTA benefits. We advise on customs duty classification (HS codes), advance licences for duty-free input imports, EPCG (Export Promotion Capital Goods) scheme for machinery imports, and customs duty optimisation strategies.

GST for Manufacturing

Manufacturing entities are among the most complex GST registrants — with input tax credit chains spanning raw material procurement, capital goods, factory utilities, and output supplies. We manage GST registration across multiple states, monthly GSTR-1/3B filings, ITC reconciliation, and annual return filing. We also advise on GST treatment of job work, inter-factory transfers, and deemed exports.

Enquire About Manufacturing Sector Advisory