Understanding Factory License Requirement for Small Industries in Chennai

Dear all,

We have started a new unit in Chennai. We have installed 2 CNC Hawemat 2000 machines and 1 Bench grinding machine (Manual). Is it necessary to apply for a factory license under Tamil Nadu factory rules? If yes, please share the details.

Thanks and regards,
Vinayak S. Kulkarni.

Hello, Sir,

Congratulations.

In our opinion, it is always good to register any commercial establishment according to the prevailing statutory compliance. There are different categories by which you may register the unit as an SSI unit. There may be other compliance as per law which we can discuss only if we know more information.

We are Ascension Consult, a business consultancy based in Chennai, and PES is a group firm of ours. In case you are looking for 'professional' support, we can help. Please reach us on 9094776730.

Sincerely, AL

Hi Vinayak,

What would be the approximate employee count? If it exceeds 10 employees and if you are using power for the manufacturing process, then you have to apply for a factory license and factory plan approval.

Regards,
Rakesh
+91 9884601331

A factory license is needed if there are 10 or more workers working with the aid of power (or 20 or more working without the aid of power). You have not stated how many employees you have, so it is difficult to give a proper answer.

There is also an amendment to the Small Factories Exemption Act under which all factories with fewer than 40 employees have to maintain only 2 registers and file only 1 annual return.