MANUFACTURING & PLANT SET-UP ADVISORY

Manufacturing Setup in India for Global Companies

We manage your manufacturing setup in India as a single programme, from location feasibility and land acquisition to approvals, construction oversight, financial control and production readiness. You get one accountable partner instead of a dozen disconnected vendors.

4project phases managed end to end
30+countries our clients come from
80+professionals: CAs, CSs, MBAs and accountants
426client engagements completed in the last 5 years
01

Why Set Up Manufacturing in India?

For many international companies, manufacturing in India is fast becoming an imperative rather than a choice.

Local production or assembly brings lower costs, more competitive pricing and shorter lead times to Indian customers. It also shows those customers that you are committed to India for the long term. Global supply-chain diversification (“China+1”), Production Linked Incentive (PLI) schemes across 14 sectors, state-level investment incentives and a large skilled workforce have made India one of the most watched manufacturing destinations in the world.

Not sure yet whether the Indian market supports local production? Start with an India market assessment, then plan your India entry strategy and entity structure.

02

Why You Need an Experienced Partner

Setting up a factory in India comes with challenges that often have no parallel elsewhere. The project needs to be run as a programme, not a set of separate tasks.

  • A maze of licences and approvals. Central, state and local approvals are needed at each stage, and the sequence matters.
  • Many contractors and vendors. Architects, civil and MEP contractors, PMCs and equipment suppliers all need to be selected, contracted and coordinated.
  • Quality and timelines. Construction quality and on-time completion need independent, on-the-ground monitoring.
  • Honest financial management. Procurement, fund flows, tax and compliance need tight controls, especially when the parent company is overseas.
03

Our End-to-End Manufacturing Setup Services

1

Evaluation

  • Location feasibility analysis at macro (state) and micro (site) level
  • Comparison of state industrial policies, incentives and infrastructure
  • Search for industrial land, built-up buildings or ready sheds
  • Site due diligence: title, zoning, utilities and access
2

Establishment & Pre-Construction

  • Acquisition or lease of industrial land, building or shed
  • Detailed project planning, budgets and timelines
  • Selection of architect, contractors, project management consultant and vendors
  • Preparation of tenders and contract evaluation
  • Registrations, licences and approvals to start construction
3

Construction & Project Management

  • Complete project management as your on-ground representative
  • Monitoring of construction progress, quality and safety
  • Financial management: accounting, procurement, fund flows and payment control
  • Tax, GST and regulatory compliance during the build
  • Regular progress and cost reports to headquarters
4

Post-Construction & Production Readiness

  • Project completion, snagging and handover
  • Registrations, licences and approvals to start production
  • Hiring support, payroll and labour law compliance
  • Independent project audit of costs, contracts and capitalisation
04

Key Approvals for a Manufacturing Unit in India

Exact approvals depend on your state, industry and pollution category. These are the most common ones we manage.

StageTypical approvals and registrations
Entity & investmentCompany incorporation, PAN/TAN, FDI compliance and RBI reporting, bank accounts
Land & siteAllotment from the state industrial development authority or a private land purchase or lease, land-use conversion where needed, stamp duty and registration
Before constructionBuilding plan approval, Consent to Establish (CTE) from the State Pollution Control Board, factory plan approval, environmental clearance where applicable, and power and water connections
Before productionConsent to Operate (CTO), factory licence, fire NOC, boiler and electrical approvals where relevant, GST registration, Import Export Code, BIS certification or Quality Control Orders for notified products, Legal Metrology
People & operationsShops & Establishment or labour registrations, EPF and ESI, contract labour registration, professional tax

Wherever possible, we use the National Single Window System and state single-window portals to speed up applications and track their status.

05

Incentives, Structuring & Tax Planning

Central & State Incentives

We identify and apply for PLI schemes, state capital subsidies, SGST reimbursement, stamp duty and electricity duty concessions, and interest subsidies that fit your project.

Customs & Duty Planning

We evaluate SEZ, EOU and MOOWR (bonded manufacturing) options, and plan customs duty on imported capital goods and raw materials.

Structure & Cross-Border Tax

We advise on the right entity or joint venture, funding through equity or debt, and transfer pricing for intra-group supplies and royalties.

06

Industries We Support

Automotive & Auto ComponentsElectronics & ElectricalIndustrial Machinery & EngineeringChemicals & Specialty MaterialsMedical Devices & PharmaFood ProcessingConsumer Goods & PackagingRenewable Energy Equipment
07

Why Choose AAPT & Associates

  • Your project, run as a programme. One accountable team coordinates land, approvals, contractors, vendors and finance.
  • Financial control built in. As Chartered Accountants, we bring tight procurement, fund and cost controls, with independent project audit.
  • Strategy to production. Market assessment, entry structuring, incorporation, construction oversight and ongoing compliance under one roof.
  • Foreign-client experience. Clear English reporting to headquarters and time-zone-friendly reviews.
  • Transparent and independent. We work for you, not for contractors or vendors.
  • Big 4-trained leadership. Our partners bring 14+ years each in audit, tax and advisory for multinational clients.

Discuss Your Manufacturing Project

08

Frequently Asked Questions

How do I set up a manufacturing unit in India as a foreign company?
Most foreign companies set up a wholly owned subsidiary or joint venture in India, since a branch office generally cannot manufacture directly. The usual sequence is location selection, entity incorporation, land acquisition, pre-construction approvals, construction, pre-production approvals, and then commercial production.
How long does it take to set up a factory in India?
Timelines vary widely. Leasing a ready-built shed can take a few months, while a greenfield plant with construction typically takes 12 to 24 months, depending on scale, location, approvals and equipment lead times. We build a detailed project plan at the start.
Which approvals are needed to start manufacturing in India?
Common approvals include building plan approval, Consent to Establish and Consent to Operate from the State Pollution Control Board, factory plan approval and licence, fire NOC, GST registration and the Import Export Code. Products under BIS Quality Control Orders also need BIS certification. Exact requirements depend on the state and industry.
What incentives are available for manufacturing in India?
Depending on the sector and location, incentives can include central Production Linked Incentive (PLI) schemes and state benefits such as capital subsidies, SGST reimbursement, stamp duty exemptions, power tariff concessions and interest subsidies. Customs schemes such as SEZ, EOU and MOOWR can also reduce or defer duties.
Should we buy land, lease land or rent a ready-built shed?
It depends on your timeline, capital budget and long-term plans. Ready-built or plug-and-play sheds are fastest and need the least capital. State industrial plots offer infrastructure and incentives. Private land offers flexibility but needs careful title and zoning due diligence. We compare the options as part of the location study.
Can you act as our on-ground representative in India?
Yes. We can act as your project management and financial control partner in India: coordinating contractors and vendors, monitoring construction, controlling payments, managing compliance and reporting regularly to your headquarters.

Further reading: Setting up a manufacturing business in India: process, benefits and the role of a CA

Planning a plant or assembly unit in India?

Share your product, capacity and timeline. We will outline suitable locations, the approval roadmap and a realistic project plan, at no cost and with no obligation.

Book a Free Manufacturing Setup Consultation