I am currently running our company under the Shop and Establishment Act. We have 100 HP of power and 6 staff members (Sales, Accountant, Production Manager, Design Engineer, etc.) along with 12 laborers. Our business involves sheet metal fabrication.
1) Should I switch over to a factory license from the Shop and Establishment license?
2) Are there any benefits associated with a factory license?
From India, Pune
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1) Should I switch over to a factory license from the Shop and Establishment license?
2) Are there any benefits associated with a factory license?
From India, Pune
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Please refer below:
As per Factories Act " Factory is defined in Section 2(m) of the Act. It means any premises including the precincts thereof-
Whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or
Whereon twenty or more workers are working, or were working on any day of the preceding twelvemonths, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.
An important necessity for any premises to be regarded as a ‘factory’ is, that a “manufacturing process” should be conducted within the premises. According to section 2(k) defines manufacturing process as:- “Manufacturing process” means process for –(i) Making, altering, repairing, oiling, washing, cleaning, ornamenting, finishing, packing, breaking up, or otherwise treating or adapting any article or substance with a view to its use, sale transport, delivery or disposal.
From India, Madras
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320As per Factories Act " Factory is defined in Section 2(m) of the Act. It means any premises including the precincts thereof-
Whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or
Whereon twenty or more workers are working, or were working on any day of the preceding twelvemonths, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.
An important necessity for any premises to be regarded as a ‘factory’ is, that a “manufacturing process” should be conducted within the premises. According to section 2(k) defines manufacturing process as:- “Manufacturing process” means process for –(i) Making, altering, repairing, oiling, washing, cleaning, ornamenting, finishing, packing, breaking up, or otherwise treating or adapting any article or substance with a view to its use, sale transport, delivery or disposal.
From India, Madras
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Dear Jgs2ban,
It seems you are from Pune, Maharashtra. In Maharashtra, the Factory Act is applicable when you engage 20 or more persons and a manufacturing process is carried out in your fabrication workshop/premises/precinct, with the aid of power.
You do not have 20 or more persons employed in your fabrication workshop/premises/precinct. Therefore, the provisions of the Factory Act are not applicable to you.
From India, Mumbai
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It seems you are from Pune, Maharashtra. In Maharashtra, the Factory Act is applicable when you engage 20 or more persons and a manufacturing process is carried out in your fabrication workshop/premises/precinct, with the aid of power.
You do not have 20 or more persons employed in your fabrication workshop/premises/precinct. Therefore, the provisions of the Factory Act are not applicable to you.
From India, Mumbai
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Mr.Keshav Korgaonkar First time I am hearing that in Maharashtra State, Factory Act definition is different. How come central act differs? Thanks for your update. Regards Babu Alexander
From India, Madras
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From India, Madras
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Dear Babu Alexander ji,
Greetings.
By virtue of the Maharashtra Factories (Amendments) Act 2015, the Factory Act is applicable in Maharashtra if the manufacturing process is carried out with the help of 20/40 workmen with the aid of power or without the aid of power, respectively.
From India, Mumbai
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Greetings.
By virtue of the Maharashtra Factories (Amendments) Act 2015, the Factory Act is applicable in Maharashtra if the manufacturing process is carried out with the help of 20/40 workmen with the aid of power or without the aid of power, respectively.
From India, Mumbai
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