Expanding BPO to South India: What Legal Steps Should We Take for a New Branch?

Dear All,

I am working in a BPO, and we would like to extend our business to other remote places in South India. We have identified a few places in educational institutes. Since this is the first business outside the city, I need your suggestions and guidance on legal aspects from HR as well as management.

I have a few points to bring to your notice:

1. Can we start our business in the educational institutes? (We would be using their building, power, internet, and possibly their systems for rent.)
2. What contract procedures should be followed?
3. Should we register our company with any local registrar?
4. Can we continue our present PF and ESI registration for the outside franchise, as well as other registrations like Service Tax, VAT, PT, and Company incorporation?
5. Can we continue the permissions availed under the Shops and Establishment Act?

I would appreciate an early reply in this regard.

Thanks and Regards,
Abhiman

Hello,

As far as the Shops & Establishment Act is concerned, it is a state subject. For every establishment, even within a city, you have to obtain a separate license. You can't rely on the license issued to you under the Shops and Establishment Act for any other establishment.

P. M. Patel

Thank you for your message.

I have resolved my queries as follows:

As you mentioned, we need to obtain separate registrations for each office under the Shops and Establishments Act. The Provident Fund (PF) can be maintained under a single registration for all locations across India. However, a sub-code for the Employee State Insurance (ESI) is required if the office is situated in a different location.

Hello,

I have a query. I have a Head Office in Khar, and we have opened a branch office at Santacruz. Do I still need to have a different Shops and Establishment Certificate for the same? Please guide me.