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What License do you need to start Metal Scrap Business?

  • The possibility of profit in the scrap metal business will encourage an intelligent entrepreneur to hit the pathways searching for diverse recyclable materials. Entrepreneurs should be aware of the various conditions placed on those involved in the scrap metal industry before undertaking their quest for scrap metal resources.

    Basic concepts of the Business

    Scrap metal from manufacturing operations and customer castoffs are recycled in the scrap metal sector. Scrap metal is sold by various companies and individuals, including community junk vendors and scrap collectors. The criteria for a scrap metal business license will apply to various sectors of the business. People who deliver waste to local recycling centers, for example, are called sellers. These recycling centers locate customers for different materials to complete metal recycling trades.

    Operations and maintenance Independence

    Selling scrap metal to local recycling centers can require the acquisition of a business license. As the industry expands, some cities, jurisdictions, and states are searching for ways to ensure that those participating in it are legal and are not trafficking stolen metal, such as copper. Scrap, salvage, and junk dealers in certain parts of the world, such as Los Angeles, California, must have a business license to sell scrap. You will need to apply for a business license depending on your venue. To find out if you need a warrant, contact your county auditor's office, city hall, or the revenue department.


    Scrap metal recycling centers operate as dealers, buying scrap metal from individuals and companies and selling it to more large corporations, which require a business license. Much as with scrap sellers, the specifications differ based on local, district, and state regulations and requirements. Metal recycling centers that sell resale products like used aluminum siding or good-condition metal shelving should ask about acquiring both a company and a vendor's license to ensure they follow all tax regulations in their county and state.

    What is the price of starting a scrap metal company in India?

    With a minimum investment of 5 lakh rupees, you can start your own business. Purchase waste steel scrap materials from nearby large industries. According to our data gathered from real vendors, a minimum investment of 5 lakhs would be sufficient to start and run a company at the entry-level.

    So, to manage the needs of your clients, start your business with a 5 lakh rupee investment.


    The scrap market is a huge market in India; it's particularly big in metro cities and regions near modern zones. You'll need a permit to start a metal scrap business

    1. GST enrollment
    2. MSME enrollment
    3. DSC
    4. Registration in Gov. division to purchase scrap from, railroad, military administration, PSU organization
    5. ITR return