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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Sunrise Pharma Ltd of Hyderabad will manufacture and sell drugs in India and also export them. Besides the IEC, which approach to licences is correct?

The company must obtain industry-specific licences, such as a drug manufacturing licence, in addition to the IEC. The IEC only permits import and export activity and does not replace sector approvals, local trade licences or tax registrations required for the business.

  1. AIEC covers all approvals, so no other licence is needed
  2. BIt must also obtain industry-specific licences, such as a drug manufacturing licence, as applicable to its businessCorrect
  3. COnly a trade licence from the local body is needed, replacing IEC
  4. DOnly a GST registration is needed, replacing every licence

Explanation

IEC only authorises import and export activity. A drug manufacturer must additionally obtain sector-specific licences under the drug laws, along with other applicable registrations. Local trade licence or GST registration do not replace IEC or sector licences.

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