Scrap License in Mumbai - procedure, fees, and documents required

Updated on February 18, 2025 11:54:25 AM

Mumbai, India's financial hub, is a lively city with a strong economy fueled by industries, trade, and business. The city's fast growth and industrial activities have resulted in a large amount of waste, including different recyclable materials like metal, plastic, electronic waste, and car parts. Managing this waste properly is very important for keeping the city's environment healthy. To work legally in the recycling business in Mumbai, you must get a recycling permit.

In Mumbai, getting a permit to handle old vehicles is a key step for companies wanting to follow the rules of the Vehicle Scrappage Policy. This policy encourages eco-friendly ways to manage waste and reduces pollution by controlling how old vehicles are thrown away. The process of getting a license is controlled by the updated rules for motor vehicles from 2022. These rules explain what is needed and how to set up a recycling center that follows the rules.

What is a Scrap License?

In India, the term ‘Scrap License’ refers to a license that is needed to collect, purchase, sell, and process scrap of any kind. This license is among the legal structures that govern the sustainable management of scrap.

The main goals are to:

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Types of Scrap License in Mumbai

In Mumbai, companies that handle various kinds of waste materials need to get the right permit to work legally. The kinds of waste materials that usually need a license are:

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Documents required for scrap licenses in Mumbai

Documents required for Scrap License in Mumbai. Here is the following list.

  1. Duly Filled Application Form (Form-1)
  2. Incorporation Certificate, Shop Act Registration, or Udyam Aadhaar
  3. Valid PAN
  4. Consent to Establish Proof
  5. Proof of Technical Requirements
  6. Proof of Machinery
  7. Consent to Operate (CTO)
  8. Quality Certification Undertaking
  9. Proof of Occupation
  10. Approved Layout Plan
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What is the application process for obtaining a Scrap License in Mumbai?

This is the application process for obtaining a Scrap license in Mumbai. Here is the following list.

Step 1: Application Submission

Form-1: The applicant has to complete an application form appropriately called Form-1 and hand it over to the Registration Authority of the particular state government or union territory.

Processing Fee: It is required that an application be accompanied by a non-refundable processing fee.

Step 2: Documentation Requirements

Applicants are required to submit various documents, including Applicants are required to submit various documents, including any one of the business registration certificates, such as the incorporation certificate, shop act registration, or Udyam Aadhaar.

Step 3: Single-Window Clearance Portal

It has set up a single window clearance mechanism for the submission of applications and renewals for FDI. This has been made easier by this portal, whereby the applicant can follow the status of his or her application.

Step 4: Verification and Approval

After submission of the application and documents, the authorities shall peruse through all the documents submitted, conduct physical inspections as and when necessary, and ensure that all laws have been complied with.

Step 5: License validity and renewal

The RVSF license is initially issued for a period of ten years and may be renewed for further terms of ten years, subject to compliance with the current legal requirements.

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Fees for Scrap License in Mumbai filling applications?

The scrap license in Mumbai is provided to scrap dealers involved in the collection, storage, and sale of scrap materials such as metal, plastic, paper, etc. Here is a summary of the fee structure and other general guidelines to get a scrap license in Mumbai.

Particulars Category Fees Range (INR)
Application Fees Small-scale operations ₹ 10,000 to ₹ 25,000
Medium-scale operations ₹ 25,000 to ₹ 50,000
Large-scale operations ₹ 50,000 and above
License Fees Small-scale operations ₹ 50,000 to ₹ 1,00,000
Medium-scale operations ₹ 1,00,000 to ₹ 1,50,000
Large-scale operations ₹ 1,50,000 to ₹ 2,00,000
Environmental Compliance Fees General Compliance ₹ 20,000 to ₹ 50,000
Hazardous Waste Compliance ₹ 50,000 to ₹ 1,00,000
Security Deposit Low-Risk Scrap ₹ 50,000 to ₹ 1,00,000
Moderate-Risk Scrap ₹ 1,00,000 to ₹ 2,00,000
High-Risk Scrap ₹ 2,00,000 to ₹ 5,00,000
Inspection Fees ₹ 10,000 to ₹ 30,000
Renewal Fees ₹ 25,000 to ₹ 1,00,000

Professional Fee for the same starts at ₹15,000.

Note: The abovementioned fee is exclusive of GST.

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Conclusion

Getting a permit to handle scrap in Mumbai is very important for any company in the scrap business. This permit makes sure the company works legally and follows rules about the environment and safety. These rules are important for keeping people healthy and the environment safe in a big city like Mumbai. Even though getting this permit can be difficult and expensive, following the law, saving resources, and helping the recycling economy make it a good investment.

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Frequently Asked Questions

What is a Scrap License in Mumbai?

A scrap license in Mumbai is a legal document that businesses need if they collect, process, or recycle materials like metal, plastic, and electronic waste. This license makes sure that these businesses follow the rules and protect the environment.

Who needs to get a scrap license in Mumbai?

Anyone or any company in Mumbai that buys, sells, processes, or recycles scrap materials must have a Scrap License. This applies to businesses that handle metal, plastic, electronic waste, car parts, and other recyclable items.

Can I relocate or transfer my scrap license?

Usually, scrap licenses are tied to a specific place and business. If you want to move the license to a new place or to a new owner, you might have to get a new license or ask for permission from the Mumbai Authority. Whether you can transfer the license depends on the rules that are in place.

What tasks come with having a scrap license?

If you have a scrap license, you must make sure your business follows all the rules about the environment and safety.

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