To add to what Mr. Samvedan has written, as per Section 85 of the Factories Act, the state government has the power to declare any factory where fewer than 10 workers are employed to be a factory. Therefore, an establishment manufacturing paint with only 3 employees is considered a factory that requires a license and other formalities provided in the Factories Act. Hence, the applicability can be tested only with reference to Section 85 as well.
Regards,
Madhu.T.K