Setting Up a Manufacturing Unit in Mumbai: What Legal Steps Should We Take?

Dear friend, Our organization would like to set up a manufacturing unit. Therefore, I have some queries about it:

Formalities Required to Start a Manufacturing Unit in Mumbai, Maharashtra

1) What are the formalities required to start a manufacturing unit in Mumbai, Maharashtra?
2) What are the basic laws we need to study?
3) What formalities do we need to follow if the employee is below 20?

I need to provide answers to my seniors. Your urgent assistance is greatly appreciated.

Regards, Swati

Dear Miss Swati Saad, I congratulate you on the prospect of beginning a manufacturing unit. First and foremost, you need to identify the scale of your operations and approach the district industries office in your industrial area. To begin with, municipal area taxation, water connectivity, and electricity connection details need to be established. Later, you will need to handle taxation towards government departments such as Value Added Tax, Central State Tax, Excise and Customs, and Service Tax Department registrations. Additionally, you will need to visit the labor office where the concerned Assistant Labor Commissioner will brief or guide you on all the rules regarding the employment of labor for your manufacturing unit based on its location. You may need to advertise job availability in certain mandatory notifications.

The above steps are considering that you have a business plan in place, and you may seek the assistance of a chartered accountant along with a seasoned veteran in your proposed industry who can guide you with technical aspects.

Kind regards

Dear Madam, you have to apply for a license under the Factories Act 1948, for which the plans have to be approved by the Factory Inspector. So, first and foremost, before proceeding with any other operation, please apply for a factory license. Thereafter, you have to comply with various labor laws such as the notice of the opening of the establishment, maintenance of muster cum payroll, display of extracts under various laws, etc.

If the Employees' State Insurance Act is applicable, meaning if your unit is situated in a notified area, then you need to obtain an ESI code number. Furthermore, if you are going to need people for loading and unloading, then registration under the Mathadi Act is required. If you are going to engage contract labor, then registration under the Contract Labor Act is also necessary.

If you need any further assistance, my email address is [Email Removed For Privacy Reasons].