Aniket Pathak
Sr. Executive Hr
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
+1 Other

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I am currently running our company on a shop and establishment act. I have 100 Hp of power and 6 staff (Sales, Accountant, Production manager, Design engineer etc) with 12 laborers. We deal with sheet metal fabrication.
1) Should I switch over to the factory license from Shop and Establishment license.
2) Are there any benefits attached to a factory license?
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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.
yes you should obtain factory license.
Dear Jgs2ban,
It seems, you are from Pune- Maharashtra.
In Maharashtra, Factory Act is applicable when you engage 20 or more persons and manufacturing process is carried out in the your fabrication workshop / premises / precinct, with the aid of power.
You do not have 20 and more persons employed in the your fabrication workshop / premises / precinct. Therefore, the provisions of Factory Act are not applicable to you.
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
Dear Babu Alexander ji,
Greetings.
By virtue of taken place under Maharashtra Factories (Amendments) Act 2015 the Factory Act is applicable in Maharashtra, If the manufacturing process is carried with the help of 20/ 40 workmen with the aid of power / without the aid of power respectively.
Mr.Keshav Korgaonkar
Thanks and appreciate your up date.
warm regards
Babu Alexander
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