Navigating Legal Steps for Setting Up a New Automobile Company: Where Do I Start?

Dear Sir,

Can you send me some information regarding when a new company arrives? For example, a Japanese group company wants to buy land and start a new setup. They have appointed me as a Senior HR Executive.

So, you are requested to please give me some insights on things like where I need to go for buying land and which government offices I will have to visit after the purchase. The company operates in the automobile sector.

Mail ID: [IMG]https://www.citehr.com/misc.php?do=email_dev&email=cmFodWx5YWRhdj E5ODJAcmVkaWZmbWFpbC5jb20=[/IMG]

Regards,
Rahul

Dear Rahul,

For buying the land for the construction of the factory building, you should approach the local property dealers in the area where you intend to construct the building. The appropriate government authority to contact is the Haryana Government. After purchasing the land, you will proceed with the construction. Therefore, it is advisable to contact the Labour Department's Industrial Safety & Health wing for the proper implementation of the Building & Other Construction Workers (RE&CS) Act, 1996, and the Factories Act, 1948 to obtain registration and a license. You are also responsible for maintaining proper records of the workers/employees under various labor laws applicable to your unit during and after the construction work is completed. Please proceed accordingly.

Best wishes for your future progress.

Regards, R.N. Khola
Skylark Associates, Gurgaon
09810405361

Dear Rahul,

For buying land to set up industries, you need to contact the revenue department of a state. They will guide you on which locations are identified by the government for setting up industries. It also depends on the nature of the industry your company wants to establish.

Regards,
Kaku

Dear Rahul,

When you decided to buy the land, note a few things:

Industries are bifurcated into three categories: Red, Orange, and Green.

1. The land should be 1 km away from a recognized river and 500 m from an unrecognized river (water sources like ponds, village wells, lakes, etc.).
2. At least 500 m - 1 km away from the village.
3. Wet agricultural land transformation is tedious. Dry agricultural land is somewhat easier to convert to industrial land (the concerned department is DTCP). Unclassified land is very easy.

Before purchasing the land, select the area, analyze the area to determine which panchayat, taluk, district, etc., it falls under. Then find the pollution control board for that area and convey a message to the Junior Engineer regarding any queries. That person will guide you according to your industries and the polluting substances you are using, etc.

After purchasing the land, apply for a certified copy from the register office (a copy of the sale deed), apply for Patta, and keep the record. Then conduct a survey and soil test of the land at five points. Based on that, the factory, sewage, and water storage plan will be plotted, and obtain signatures from the village president and people for plan approval. Convert the unclassified land to industrial classified land.

Maintain a good rapport with the village Administrative Officer and president. After getting the approval, construction can begin. Remember, without the help of a consultant, you cannot get approval from the Pollution Control Board (PCB) as they are independent of the state and central authorities.

Stay composed, as politics may interfere with industrial growth, so be diplomatic. You may need to spend a significant amount of money, even exceeding 10 lakh, so negotiate carefully.

After construction, you must obtain a No Objection Certificate from the village president regarding plan approval before starting operations.

A factory inspector will come for inspection regarding the same.

You have to work very diligently on this. For any queries, you can contact me.

Best regards

Dear Seniors,

Please let me know the difference between the ESI and WC Act. If the area of the particular organization is not covered under ESI, then which rule is applicable? For example, if an employee meets with an accident and their salary is less than Rs. 10,000, under which act should they claim? Conversely, if the employee's salary is more than Rs. 10,000, which act will be applicable to them? Also, has the employer registered their factory under the WC Act? What is the procedure for that or the rule?

Please guide or email me at ramnathmsw@yahoo.com.

Ramnath

I think it would be best if you approach the local government departments. For example, KIADB (Karnataka Industrial Areas Development Board) acts as a single window clearing agency. I am sure there are similar departments in other states as well.

Approaching this exercise as a do-it-yourself kit may be very daunting.

Sharda

Novo Juris - Your Legal Team providing services like compliance check, contract check, and more.

Dear Rahul,

All the best for your new venture which will be more learning for your career growth. You should take guidance from your senior HR professional, weigh their suggestions, and decide to make the best choice.

If you are going to set up a factory, kindly check with your company where they would like to buy, especially whether they want to lease land for 99 years from the respective State government allotted area of industrial locations, which is cheaper and legal compliance could be very easy too.

In case you feel the company is going to buy its land, choose the land according to land classification. Always remember to choose unclassified or industrial area for a smooth legal system. If you still need to use the rest of the categories, you have to strongly push for CLU (Conversion of Land Use classification), which needs lots of local and government liaisoning and could be expensive too.

Initially, you need to obtain a certificate from the District Town & Country Planning (DTCP) for land classification and follow up with the Pollution Control Board (PCB) for the application.

Alternatively, you can approach the SINGLE WINDOW Clearance system through either of the following departments:

District Industrial Centre (DIC) where the District Collector's office prevails and submit the required documents, the SWC application along with adequate drawings (15 sets), which they will forward to 5/6 departments for clearance so that you don't need to run around to all the departments unnecessarily (in case you want it urgently, you pursue each department).

Similarly, you can approach the State Industries Promotion wing if you have taken lease land, also guiding the SWC, which is also an easy documentation process for clearance.

Thirdly, if your location is in a Panchayat Union, you can please approach the Block Development Officer or Commissioner of the Panchayat and submit the SWC application along with the documents.

Finally, after all the departmental approvals, reach the Panchayat Union to pass the resolution by the local body clearance (Chairman and 4 councilors) to pass. Only then will all clearances be considered completed. The BDO will issue a running license upon receipt of fees. After this, respective departments will come for inspection/renewal every year/half-yearly depending on the category of your industry.

Regarding the rest like ESI/PF, you can directly contact the respective enforcement officer and carry out accordingly.

I hope this can add value to your thought process.

RAGHU

Dear Sir,

Can you send me some information regarding when a new company arrives? For example, a Japanese group company wants to buy land and start a new setup. For this, they have appointed me as Sr. HR Executive.

So you are requested to please give me some inputs like for buying land where I have to go, and then after buying, which government offices I will have to visit. The company is in the automobile sector.

Mail ID - [email hidden]

Regards,

Rahul

Mr. G.R. Vishaka Guru & Mr. Raghunath A.C.

The information given for the new factory setup is very useful. I would like to have a contact number.

Ignatius A. Senior Manager HR Han Sung Metal Pvt Ltd Chennai.

Mobile: 9940236223.