Hello,
A manufacturing unit employs fewer than 10 workers and uses approximately 80 HP of power. Is it mandatory for them to apply for factory registration and a license? What will happen when they cross 10 employees?
Thanks in advance for your response.
From India, Aurangabad
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14A manufacturing unit employs fewer than 10 workers and uses approximately 80 HP of power. Is it mandatory for them to apply for factory registration and a license? What will happen when they cross 10 employees?
Thanks in advance for your response.
From India, Aurangabad
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Factory license is mandatory, but the licensing authority only changes. If you take the license with less than 10 employees, it will be possible to obtain it from the district officer. However, if you apply for registration with more than 10 employees, you will have to get it from the state headquarters.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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At present you are not governed by FA Act.but once you have 10 workers an start production you have take license under the Act. varghese mathew 9961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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The State Government can extend, by notification, the application of the Factories Act to any manufacturing unit irrespective of the fact that they employ less than ten workers. So, verify whether any such notification is in force in your state. In that event, you need to obtain a license and registration under the Act.
B. Saikumar
HR & labour law Advisor
Mumbai
From India, Mumbai
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B. Saikumar
HR & labour law Advisor
Mumbai
From India, Mumbai
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Dear Madhu ji,
I think you are confused with Factory Licence and Factory Permit. The Factory Licence is under the FA 1948. It is applicable in case you engage 10/20 or more workers in the manufacturing process as defined. The Factory Permit is permission from a local authority such as a Municipal Officer or District Officer to run any workshop or factory, irrespective of employees.
Saikumar ji,
According to my knowledge, there is no provision in FA which says the State Government can extend, by notification, the application of the Factories Act to any manufacturing unit, irrespective of the fact that they employ less than ten workers. Please correct me if I am wrong.
From India, Mumbai
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I think you are confused with Factory Licence and Factory Permit. The Factory Licence is under the FA 1948. It is applicable in case you engage 10/20 or more workers in the manufacturing process as defined. The Factory Permit is permission from a local authority such as a Municipal Officer or District Officer to run any workshop or factory, irrespective of employees.
Saikumar ji,
According to my knowledge, there is no provision in FA which says the State Government can extend, by notification, the application of the Factories Act to any manufacturing unit, irrespective of the fact that they employ less than ten workers. Please correct me if I am wrong.
From India, Mumbai
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You can always contact the SSI or MSSI (Micro Small Scale Industries) office and inquire about the registration and legal formalities. Many exemptions are provided to Small Scale Industries and Micro Small Scale Industries. Since yours is a very small manufacturing unit, I feel you will come under SSI or MSSI. Please consult any expert in your city for more clarifications.
From India, Madras
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From India, Madras
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Dear Keshav Ji,
Section 85 of the Factories Act grants the power to the State Government to extend the application of the Factories Act to certain premises where the manufacturing process is carried on. It reads as follows:
1) The State Government may, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply to any place where a manufacturing process is carried on with or without the aid of power or is ordinarily carried on, notwithstanding that -
i) the number of persons employed there is less than ten if working with the aid of power and less than twenty if working without the aid of power, or
ii) .................................................. ...........
To give an example, in exercise of the powers conferred by the above Section, the Government of Maharashtra extended the Factories Act to premises where the handling and processing of hazardous chemicals are carried on, irrespective of the number of persons employed in such a manufacturing process (Notification No. FAC-1085/(9782)Lab-4 dated 9th July 1985).
Thanks for clarifying the distinction between a factory license and factory permit.
B. Saikumar
Mumbai
From India, Mumbai
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Section 85 of the Factories Act grants the power to the State Government to extend the application of the Factories Act to certain premises where the manufacturing process is carried on. It reads as follows:
1) The State Government may, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply to any place where a manufacturing process is carried on with or without the aid of power or is ordinarily carried on, notwithstanding that -
i) the number of persons employed there is less than ten if working with the aid of power and less than twenty if working without the aid of power, or
ii) .................................................. ...........
To give an example, in exercise of the powers conferred by the above Section, the Government of Maharashtra extended the Factories Act to premises where the handling and processing of hazardous chemicals are carried on, irrespective of the number of persons employed in such a manufacturing process (Notification No. FAC-1085/(9782)Lab-4 dated 9th July 1985).
Thanks for clarifying the distinction between a factory license and factory permit.
B. Saikumar
Mumbai
From India, Mumbai
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Dear Saikumar ji, Thank you very much for your quick response and correcting me on fact of law. This is to way we all learn by actively participating in this forum. I admire you.
From India, Mumbai
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From India, Mumbai
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Dear Friend,
Under the Factories Act of 1948, a factory has been defined as precincts:
"Whereon ten or more workers are working, or were working on any day of the preceding twelve months..." Clause "m" of Section 2.
If you anticipate an increase in your workforce to 10 or more workers within the meaning of the above definition, then you might as well complete all the related formalities and apply for a Factory License under the Factories Act.
Best Wishes,
Vasant Nair
From India, Mumbai
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Under the Factories Act of 1948, a factory has been defined as precincts:
"Whereon ten or more workers are working, or were working on any day of the preceding twelve months..." Clause "m" of Section 2.
If you anticipate an increase in your workforce to 10 or more workers within the meaning of the above definition, then you might as well complete all the related formalities and apply for a Factory License under the Factories Act.
Best Wishes,
Vasant Nair
From India, Mumbai
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Dear friend,
I am not sure what exactly "the manufacturing process" taking place in your estt. You may approach the Director at the District Industry Centre at Aurangabad and get yourself regd. under SSI/MSME Act irrespective of your strength. This will help you to gain some incentives and concessions, quick realisation of your bills on preference, loan facilities etc. Even if you don't want to classify yourself as an "Industry/Factory" atleast register under "The Bombay Shops & Estt. Act" that should be sufficient alongwith the SSI regn.for the present. There are so many consultants to help you, use such links for help.
pune « SSI Registration
Regards,
kumar.s.
From India, Bangalore
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I am not sure what exactly "the manufacturing process" taking place in your estt. You may approach the Director at the District Industry Centre at Aurangabad and get yourself regd. under SSI/MSME Act irrespective of your strength. This will help you to gain some incentives and concessions, quick realisation of your bills on preference, loan facilities etc. Even if you don't want to classify yourself as an "Industry/Factory" atleast register under "The Bombay Shops & Estt. Act" that should be sufficient alongwith the SSI regn.for the present. There are so many consultants to help you, use such links for help.
pune « SSI Registration
Regards,
kumar.s.
From India, Bangalore
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Factories Act.doc
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