Confused About Factory License Renewal Costs? Seeking Help to Understand the Fee Difference

Hi all, we want to renew our factory license for next year. It's a garment company. Last year's renewal, we paid Rs. 1800 for 51 employees. However, in the license book, during the license issuance, they mentioned that for 50 employees, we have to renew with the amount of Rs. 1200. Now, my doubt is how did they know that last year for 51 employees, we paid Rs. 1800? How can I find out the actual amount and how the difference came about? Please, can anyone help me with this? There is no one here to guide me.

Your question was not clear to me. A few details are required. How many employees do you have this year? How many employees did you have last year?

Regards,
Viraj

Dear Pradeep, it's simple. This year, you need to register 41 employees, and you will have to pay Rs. 1200 less, if I am correct. Let's avoid discussing what happened last year. Even the registration authority cannot assist you with that.

Regards,
Viraj

Now I'm having another doubt. This is a garments company, so we have 20 staff and 41 laborers. Should I add both for the count to pay the renewal of the factory license?

You need to confirm if these staff and laborers are on the company's payroll or if they are contractors. If they are on the company's payroll, then your count is 61. If they are not, then your count is 41, and you need to register the rest as your contractors. Please clarify the employee breakup.

Regards,
Viraj

If it is 61, how much do I need to pay for the renewal? How can I calculate it? Where can I get this information?

Thank you.

[QUOTE=pradeep, kumar;1385844]Hi all, we want to renew our factory license for next year. It's a garment company. Last year's renewal, we paid Rs. 1800 for 51 employees. However, in the license book, when obtaining the license, they mentioned that for 50 employees, we have to renew with the amount of Rs. 1200. Now, my doubt is how they came to know that last year for 51 employees, they paid Rs. 1800. How can I know the actual amount and how the difference came about? Please, can anyone help me with this? There is no one to guide me here...

Steps to Determine the Correct License Fee

1) Refer to The Maharashtra Factories Rules 1963 (Statewise Factory Rules Bare Act).
2) Maharashtra Factories Rules - 1963 - [SCHEDULE [A]] PAGE 85.
3) Factory License Fee is based on the number of persons to be employed on the day during the year and the Quantity of HP installed (Maximum H.P.).
4) It's clear that the act talks about the number of persons (and not temporary/contract/casual/staff/employees/workers/workmen, etc.) so it covers all.
5) My suggestion is, rather than going for a 1-year renewal, why not prefer a 3-year renewal (the Act permits for a max. of 5 years, but normally DY.DISH office gives renewal for 3 years).

I hope this will help you.
Prashant

I agree with Mr. Prashant. The license fee is paid based on the manpower and horsepower.

Secondly, strength means all employees/workers, including contract labor, permanent, and casual.

As I know, you will have to obtain or renew the factory license based on the maximum number of persons proposed, which includes the total workers (e.g., permanent, temporary, casual, contract, etc.) to be employed on any one day during the year for which the license is to be taken, and the total rated capacity (power) of the machinery and plant installed expressed in Horsepower. The fee structure is prescribed by the state government.

Therefore, you will have to check out the fee structure from the "Inspector of Factories" office or from the Factory rule book.

Regards,
Ramanuj Ojha.

Instead of confusing yourself, why don't you speak to the concerned inspector and sort out the issues? He will be the best guide.

Regards,
Nair RJ

Please check your last year's factory license. On the backside of the same, they have mentioned all these details.

As per my knowledge, Mr. Pradeep, your license fees are calculated based on the labor and HP (electric power) you use in the unit. So, please indicate how much HP you are using and the number of laborers (both contractors and permanent staff). Additionally, could you confirm if your unit is located in Maharashtra? This information will allow me to provide you with an exact figure.

Regards,
Smart Consultant