Dinesh Divekar
Business Mentor, Consultant And Trainer
Roshani Shripad
Hr Department
+2 Others

Dear All,
I would like to set up a small scale garment manufacturing unit and a small retail space in Gurgaon. Women’s casual wear and would like to operate in a niche market . I have professional degree in Fashion Designing.
1. It would be Proprietorship co.
2. Permanent employee and workers less than 10 people
3. Need to apply for a loan from BMB( Bhartya Mahila Bank )
4. Machines required Juki Sewing Machine 5, Juki Overlock Machine (5 thread) 1, Cloth Cutting Machine 2, Garment washing machine 1, Inverters 2. e.t.c.
5. Do I need to apply for a Factory License under the Factories Act 1948?
6. Without aid of power,
7. NOC from Pollution Control Board
8. In terms of tax compliances, do I need the unit has to register for service tax, sales tax, PAN and export tax amongst others. A garment unit has to register under the Child Labor (Prohibition and Regulation) Rules, 1986.
Any help in this matter would be very much appreciated.
Regards
Madhumita
17th November 2014 From India, Mumbai
Dear Madhumita,

While experts who handle statutory activities may give their opinion on your queries, I will write my reply on the brass tacks of the business itself.

You have written your post to clarify about the statutory requirements only. Nevertheless, businesses do not prosper only on fulfilment of the statutory requirements. Have you made your business plan? I am asking about the business plan from the business standpoint and not the one that we submit to the bank manager to get some loan. Secondly, have you identified the various costs of your business? Roughly, your success in business will depend on managing following costs:

a) Inventory Carrying Cost of Raw Materials

b) Work in Progress (WIP) Inventory Costs

c) Inventory Carrying Cost of Finished Goods

d) Capital costs to run the operations

e) Capacity costs

f) Maintenance costs

g) Quality costs

h) Marketing costs

i) Other Admin costs

For my reply on retail business, you may click the following link:

https://www.citehr.com/484179-retail-industry.html

About Making Business Plan: - By the way, you wanted to start your business. But then have you prepared your business plan? If not, then you may avail of my consulting services. I help the upcoming entrepreneurs in developing a business plan for their business.

All the best!

Dinesh Divekar

+91-9900155394
17th November 2014 From India, Bangalore
Hi Madhumita, It would be good if you apply for factory license, PAN, service tax etc. As it will be beneficial to you once your business starts expanding.
17th November 2014 From India, Mumbai
------------------------------------------------

Pl.note views on your posts-

1) No comments on S.No.1,2,3,4,6. Here so because you can apply your wisdom which suits you.Law protects your decision .Go ahead.You need to have license under Shops and establishment Act under S.10-forms for intimation and there is no fees but registration is available for 3 yrs as your strngth is less than 10.

2) Factory license is not required at the moment. But washing machines and other appliances / machinery will be in premises with aid of power and once you have more than 9 ( workers( Male/ female-direct/indirect), you will need Factory license.

3) You need to comply Pollution Control Board's NOC requirement as jobs like Stitching is under Green category, its simple also.

3)Tax compliance-Please get this formalities done .Service Tax number and you can have access to on line with use of your PAN card same will be faster also.If you are going to employ children, then you need to disclose under Shops and Establishment Act initially while approaching for REGISTRAION NUMBER.and you have to ensure compliances like working hours, wages payment, health, safety, leaves etc.

Best wishes and kind regards,

RDS Yadav
20th November 2014 From India, Bareilly
Pl.note views on your posts-

1) No comments on S.No.1,2,3,4,6. Here so because you can apply your wisdom which suits you.Law protects your decision .Go ahead.You need to have license under Shops and establishment Act under S.10-forms for intimation and there is no fees but registration is available for 3 yrs as your strngth is less than 10.

2) Factory license is not required at the moment. But washing machines and other appliances / machinery will be in premises with aid of power and once you have more than 9 ( workers( Male/ female-direct/indirect), you will need Factory license.

3) You need to comply Pollution Control Board's NOC requirement as jobs like Stitching is under Green category, its simple also.

3)Tax compliance-Please get this formalities done .Service Tax number and you can have access to on line with use of your PAN card same will be faster also.If you are going to employ children, then you need to disclose under Shops and Establishment Act initially while approaching for REGISTRAION NUMBER.and you have to ensure compliances like working hours, wages payment, health, safety, leaves etc.

Best wishes and kind regards,

RDS Yadav
20th November 2014 From India, Bareilly
Thank you Mr.Yadav.
Appreciate your help on this. I will take care of these legal formalities.
I will not employ anybody less than 18 year age, rather I am planning to work with NGO’s for women empowerment if possible…
If my permanent employees are less than 10 and with contracts basis employee are all together exceeding 10 then do I have any legal formalities regarding registration process.
Regards
Madhumita

21st November 2014 From India, Mumbai
Dear Dinesh,
As a Fashion Designing student I have studied Apparel Manufacture Process and Apparel Marketing and I have read Philip Kotler too (older version).
Currently I am trying to make my business plan work for me so that it can be funded …..
Why do we need a different business plan while applying loan.
Your suggestions and feedback will be valued and highly appreciated.
Regards
Madhumita

21st November 2014 From India, Mumbai
Ms. Madhumita,
The number is 9 or more for getting license its not 10 0r more.
Furthermore, during any day in year if total of employees if more than 9 in any form ie regular or through contractor, provisions of Factories Act will me applicable.You can reach at my below number, if any issue is there any time.
Best wishes,
RDS Yadav
Advisor and Management consultant
+91-8057800040
22nd November 2014 From India, Bareilly
Dear Madhumita,
My replies are given in italics: -
As a Fashion Designing student I have studied Apparel Manufacture Process and Apparel Marketing and I have read Philip Kotler too (older version).
Comments: - Armed with your qualification, experience etc, you should be able to manage all the costs mentioned in my previous post. Please make sure that while taking care of one cost, some other cost does not go up.
Currently I am trying to make my business plan work for me so that it can be funded ….. Why do we need a different business plan while applying loan.
Comments: - Components of our business plan are given in my previous link. This is too deep and bank managers are not interested in getting into that detail.
Lastly, I recommend you going through following link also. It will be quite useful to you to run business:
Strategic Marketing Plan
All the best!
Dinesh Divekar
22nd November 2014 From India, Bangalore
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