Scrap licence: What license do you need to be scrapman

What is a metal scrap business?

Business-related to metal scrap license involves buying the scrap from big ventures. It too in bulk and selling it in the appropriate local market or recycle them into useful products as required.

Scrap metal a profitable venture, but it difficult to get started due to the large requirements of capital. Investors take interest in this particular business sector since it recycles metals, making it a “green” business.

The vast array of metals that processed makes inventory easier to procure. But daily routes planned to guarantee a constant supply of metals.

With the requirement for trucks and vans, equipment worthy of mounting and shipping heavy metal goods. The scrap metal industry has enormous startup costs. If the scrap metal company also plans to recycle the metal at one’s own recycling facility, the capital requirements would be much higher since a recycling facility must be constructed or leased.

Scrapman License_Corpseed
What license do you need to be scrap man?

From where the scrap can be obtained?

Scrap can be obtained from varied sources, some of them being:

  1. Producers that manufacture metal products
  2. Airlines companies
  3. Railroads companies
  4. Dismantlers of automobiles
  5. Sources of construction
  6. Factories etc.

What are the types of scrap metal?

Scrap metal can be broadly classified into 2 categories, they being ferrous & nonferrous. Ferrous scrap is usually iron and its related metal while nonferrous metal on the other hand can include aluminum, copper, cobalt, etc. Further, the scrap distinguished as purchased scrap or home scrap.

Importing metallic scrap: Regulations and licensing

The Indian Directorate General of Foreign Trade (DGFT) has formulated guidelines for the import of metallic scrap in accordance with the Basel Convention standards. Import of metallic scrap permitted under DGFT rules only if they free of dangerous materials such as nuclear wastes or other explosive materials such as cartridges and shells.

Scrap materials like copper and aluminum, for the purpose of its import, do not need a license to be obtained from DGFT.

According to the Basel Convention, such hazardous metallic wastes must be imported into India with a scrap certificate and license from both the DGFT and the Ministry of Environment and Forests.

Requisites to be a scrap man

There are certain requisites that must be kept in mind if a person wants to be a scrap man full-fledged, these are as follows:

  1. Firstly, one must get familiar with the product and learn to differentiate between ferrous and non-ferrous metals. Proper identification is the key for culminating profitable transactions
  2. Secondly, make sure to keep a tab on the latest metal pricing since the business of metal scrap undergoes fluctuations while ensuring other variables including the metal type, the processing time which is required to sort and clean it, and also transportation costs.
  3. The next step lies in getting familiar with the vocabulary revolving around the field which can prove to be instrumental in facilitating all the communications as well to ensure amalgamation into the new industry.
  4. Further, there is a necessary impediment to have a business plan that shall give a kick start to the decision-making process. Inculcate in your business plan, a habit to visit nearby metal vendors and try making contact with the local experts in this field. This shall aid in enriching the business.
  5. Invest in building strong relationships with the local dealers.
  6. One can also explore the associated recycling business and tap on all related opportunities. It would require basic requirements like land and capital to initiate it.

Things that a scrap man must keep in his mind

The following tips must be handy for every scrap man planning to start a scrap business:

  1. One must have a scale in order to measure the metal by weight while involved in buying and selling business.
  2. For the street vendor, the processing limited, but it critical to sort metals by kind of it in order to optimize revenue. Also, try to ensure you have a photo ID. The security and the recycling industry take metal theft extremely seriously. Scrap metal buyers must keep track of the seller’s information as well as the vehicle’s license number.

Scrap license: How to fetch it?

The scrap market did not confine to a limited area but it spread across the whole nation. In order to give birth to a scrap business, certain licenses required to furnished by the business owner which given below:

  1. The first and foremost step lies in registering the company
  2. Secondly, acquire DSC
  3. The business must enroll for GST
  4. The company enrolled for MSME
  5. Don’t forget to file an IT return


It can be said that the scrap business is lucrative in itself provided the scrap man takes care of the essential licenses obtained legally.

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