Ramanuj Ojha
Safety Professional
Accounts, Admin, Sales Tax, Service Tax,
G. Edward Lawrence
Hr Executive
+5 Others

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Hi all,
We want to renew our factory license for next year. Its a garment company. Last year renewal we paid Rs.1800/- for 51 employees.But in the license book while getting license they mentioned that for 50 employees we have to renew with the amount of Rs.1200/- now my doubt is how they came to know that last year for 51 employees they paid Rs.1800/-. How can i know that the actual amount how the different came......plz any one help me for this there is no one to guide me here.....

Dear Pradeep, Your question was not clear to me. Few details are required. How many employees do your have this year. How many employees you had last year. Regards, Viraj
Dear Pradeep,
So its simple, this year you register for 41 employees and you will have to pay less Rs. 1200/- if I am right.
Avoid getting into what happened last year. Even the registering authority cannot help you out with that.

Dear viraj, Now I’m having another doubt...This is a Garments company so we have 20 staffs and 41 labors. Should I add both for the count to pay the renewal of factory license
Dear Pradeep, Whatever they may be. They need Head count, that’s all. Okey. Lawrence
Dear Pradeep,
You need to confirm if these staff and labours are on company rolls or contractors
If yes then your count is 61.
If not the then your count is 41 and you need to register the rest as your contractor.
Please clarify the employee breakup.

Dear Viraj, okay sure. If it is 61 how much i want to pay for the renewal. How can i calculate? Where can i get this information....
1) Refer The Maharashtra Factories Rules 1963 ( Statewise Factory Rules Bare Act )
2) Maharashtra Factories Rules - 1963 - [SCHEDULE [A] ] PAGE 85
3) Factory License Fee is based on No. of persons to be employed on the day during the year and Quantity of HP installed ( Maximmum H.P. )
4) Its clear that act talked about no. of persons( and not temporary / contract / casual / staff /employees / workers/workmen/ etc etc ) so it covers all.
5) My suggestion is Rather to go for 1 year renewal why do not prefer for 3 years renewal ( Act permit for max. 5 years but normally DY.DISH office gives renewal for 3 years.
I hope it will help you.

I am agree with Mr. Prashant. Licence fee is paid on the base of Manpower & horse power. Secondly, Strength means all employee/ worker including contract labour, permanent & causal
Dear Mr. Pradeep,
As I know, you will have to obtain / renew the factory license as per maximum number of person proposed which includes the total workers (e.g, permanent, temporary, casual, contract, etc.) to be employed on any one day during the year for which license is to be taken and the total rated capacity (power) of the machineries and plant installed expressed in Horse Power. The fee structure is prescribed by the state government.
Therefore, you will have to check out the fee structure from the "Inspector of Factories" office or from the Factory rule book.
Ramanuj Ojha.

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