There are numerous licenses and registrations for operating a warehouse. With the new economy of sharing warehouse space, it becomes essential to ensure compliances of both the operator and the depositor of the goods. Below is a checklist, listing the licenses and registrations to be obtained from the operator and the depositor. Many licenses are very specific to the goods stored. The Warehousing (Development And Regulation) Act, 2007 defines warehouse as any premises (including any protected place) conforming to all the requirements including manpower specified by the Authority by regulations wherein the warehouseman takes custody of the goods deposited by the depositor and includes a place of storage of goods under controlled conditions of temperature and humidity.
| Particulars | Requirements | Warehouse Operator | Depositor | |
| Registration | VAT Registration/Certificate | Yes | Yes | |
| Sales Tax Registration | Yes | |||
| Excise Registration with Central Excise Department (Manufacture of Dutiable goods) | Yes | |||
| Customs Registration | Yes | |||
| Registration certificate issued by the Accreditation Agencies registered with National Cooperative Development Corporation (NCDC)) | Yes | |||
| PAN Card | Yes | |||
| TIN Number (Synonymous with VAT and CST registration) | Yes | Yes | ||
| Profession Tax Certificate (N/A for Delhi) | Yes | |||
| CST Certificate (Now synonymous with VAT/TIN registration) | Yes | |||
| TAN Certificate | Yes | |||
| Import of goods - IEC Number | Yes | |||
| Registration Certificate (Shops and Establishments Act) | Yes | Yes | ||
For Manufacturer Factory Registrations:
|
Yes | |||
| Licenses | NOC or warehouse license from the Municipal Corporation or local authority | Yes | Yes | |
| Factory License (for Karnataka issued by Karnataka, Department of Factories, Boilers, Industrial Safety and Health) | Yes | |||
| All Vehicle used for transportation to have valid documents (as per Motor Vehicle Act, 1939 | Yes | Yes | ||
| Insurance | If the stock is Purchased: Transportation and Transit Insurance NOTE: Insurance of imported goods/equipment would need to be arranged on a very selective basis and only for cases where the value of individual shipment is expected to be in excess of Rs. 5 crores. | Yes | ||
Statutorily required insurances:
|
Yes | Yes | ||
| Product liability insurance | Yes | |||
| Inland cargo Insurance (Specifically for covering goods that are transported within the country- a form of Marine Insurance) | Yes | Yes | ||
| Truck Cargo Policy | Yes | |||
| Stock Throughput Insurance | Yes | |||
Insurance Policies:
|
Yes | Yes | ||
| Security | Proper and adequate packaging of the goods. | Yes | ||
| Ensuring that all goods are transported in a safe manner to the Warehouse | Yes | |||
| The goods are to be accompanied with a person who has sufficient skill to handle the goods which also includes unloading from the vehicles and packing the same in the shifts. | Yes | |||
| Maintaining proper register of the goods which were unloaded in the warehouse. | Yes | |||
| Ensure that a copy of such list of goods are handed over to the warehouse in charge | Yes | |||
Measures for the Warehouse:
|
Yes | |||
| Standards | All godowns of 25000 MTs or above capacity will be preferably Railway siding godowns and all other godowns should be preferably within 8 Kms. of a Railway goods shed with full rake Railway siding facility. | Yes | ||
| Certificate from Bureau of Indian Standards (BIS)/ CWC/FCI Standards | Yes | |||
| If the warehouse does not have its own arrangement for pest control activity for scientific treatment, assaying of stocks and other activities such as security arrangements etc., then Authority will allow third party agreement with service providers and a copy of such agreements may be obtained by accreditation agency for submission to WDRA | Yes | |||
| FSSAI License/Registration | Yes | Yes | ||
| Ownership Documents | Proof of ownership (Sale Deed, Tax Receipt, etc.); or | Yes | ||
| Registered lease Deed (rights with the warehouseman to use the relevant warehouse for the purposes of operating a warehouse) | Yes | |||
Place of business
|
Yes | |||
Proof of Address/Location of the Manufacturing (If Manufacture)
|
Yes | |||
Incorporation Documents
|
Yes | |||
| Receipts of the purchase | Bills that show that the purchase of the good is complete. | Yes | ||
| Delivery records | To authenticate actual delivery of the goods purchased, records of the same reaching the user. | Yes | ||
| Agreement of Sale | To show that there is a subsisting agreement between the user and his source, for the subsequent sale of the particular good. | Yes | ||
| Import Proof | Bill of Lading/Airway Bill /Rail receipt or any other despatch document, issued by a government agency (like the Department of Posts) or an agency duly authorized by the concerned Ministry/Department. | Yes | ||
| Environmental | NOC from Fire and Emergency Services Department (e.g. In Karnataka it is issued by Karnataka Fire and Emergency Services Department) | Yes | Yes (If manufacturer) | |
| NOC from the State Pollution Control Board (with the consent for establishment and consent for operations) | Yes | Yes (If manufacturer) | ||
| Fire-fighting arrangements including Fire Extinguishers, Sand Buckets | Yes | |||
| Equipment’s, such as, sprayers, gas mask, canisters, gloves, gum boots, goggles, aprons, etc. available at the Warehouse (depending on the nature of goods being deposited at the warehouse) | Yes | |||
| Quantity of pesticides - insecticides for prophylactic treatment, fumigants for fumigation and rodenticides for rodent control. | Yes | |||
| If the warehouse does not have its own arrangement for pest control activity for scientific treatment, assaying of stocks and other activities such as security arrangements etc., then Authority will allow third party agreement with service providers and a copy of such agreements may be obtained by accreditation agency for submission to WDRA | Yes | |||
| NOC - Explosive Clearance License (Explosive Act, 1908 and Explosive Rules, 2008) | Yes | |||
| Clearance under Essential Commodities Act, 1955 | Yes | |||
| Labour Laws Compliances | The proposed minimum manpower requirement are approved by the Authority with suggestions that in case pest control and security services are out sourced, the manpower requirement may be adjusted accordingly. | Yes | Yes | |
| Registration under Employee State Employee State Insurance Act, 1948 | ||||
| Registration Certificate under Contract Labour (Regulation and Abolition) Act, 1970 | Yes | |||
| Compliances | Legal Meteorology act compliances (since the weight/ storage capacity plays major role in warehouse)
|
Yes | ||
| Maintaining Net-Worth: The minimum Net-worth applies to the warehouse on the basis of total storage capacity of goods in tonnes. The minimum net-worth requirements for registration with the Authority is 0.5 Crores where the total storage capacity in tonnes is at least Less than 1,000 tonnes | Yes | |||
| State Specific | Layout plan of the Warehouse (for e.g. Warehouse in Bangalore region requires a BBMP Approval or any such development authority approval, depending on the area i.e. Urban or Rural/SEZ, etc.) | Yes | ||
| Others | Training for Warehouse Supervisor Training is also tailored to the Warehouse Supervisor, who has the primary authority and responsibility for overseeing the management of warehouse inventories.
|
Yes | Yes | |
Author: Govinda Toshniwal, Senior Associate