Do I Need a Factory License for My Repair Service Center? Seeking Clarity!

Hi,

I have a service center for consumer durables and mobile phones. We specialize in repairing products and have a staff of over 20 employees. I need clarification on whether I need to obtain a factory license.

The article doesn't become commercially known as another and different article from what it was when it began its existence. I would like to understand if I need to obtain a factory license.

Regards, Abhiney Vasisht.

Definition of Manufacturing Process

Under the Factories Act-1948, the Act defines the manufacturing process as follows:

- Making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery, or disposal.
- Pumping oil, water, sewage, or any other substance.
- Generating, transforming, or transmitting power.
- Composing types for printing, printing by letterpress, lithography, photogravure, or other similar processes, or bookbinding.
- Constructing, reconstructing, repairing, refitting, finishing, or breaking up ships or vessels.

Definition of Factory

The Act also defines what a factory is:

"Factory" means any premises, including the precincts thereof,

- Where ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on.
- Where twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.

From the above definitions, it is evident that your organization falls under the Factories Act, and therefore, you have to comply with the provisions of this Act.

With Regards,

Mr. Thumbs Up

Hi buddy,

Your organization will be covered under the Factories Act, and automatically, your organization will also fall under the PF and ESI Acts.

Please check under the Shops & Establishment Act of your state if your establishment falls under scheduled establishments. If it is categorized as a scheduled establishment, it is not necessary to have a factory license; only registration under the Shops Act would suffice.

RL Dhingra, Advocate Labor Law Consultant, Delhi & NCR 09818309937 email: rld_498@rediffmail.com