Are We Required to Register Under the Factories Act for Our Two-Wheeler Dealership?

Respected Seniors,

Ours is a partnership firm having a dealership of Two Wheelers in Assam. Recently, a factory inspector visited our Service Centre and asked us to register under the Factories Act. We have 17-18 workers in the Service Centre. Furthermore, he also requested us to conduct periodic examinations of a hydraulic lift used to store new vehicles at our 1st Floor Godown. Are we liable for registration?

You are not required to register under the Factories Act. No manufacturing activity is being carried out in your service center/Dealer's premises. You have to get registered under Shops & Establishment prevailing in your region. Periodical testing of various lifts and hoists is a separate matter; it must be checked by a certified agency or engineers.

Thank you very much, Sir.

Is having a 10HP Air Compressor in the workshop for servicing/washing of two-wheelers make us liable to be registered under the Factories Act?

Understanding Factory Definition and Licensing Requirements

For a facility to be considered a factory, manpower and horsepower are essential silent criteria only for the fixation of the license fee. Please refer to the definition of a factory.

U/S 2 (m) "factory" means any premises, including the precincts thereof: (i) where ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which manufacturing activity is being carried on with the aid of power, or is ordinarily so carried on, or (ii) 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. However, it does not include a mine subject to the operation of [the Mines Act, 1952 (35 of 1952)] or [a mobile unit belonging to the armed forces of the Union, a railway running shed, or a hotel, restaurant, or eating place]. Thus, manufacturing activity is necessary for any premises to be known as a factory.

Now, please go through the definition of manufacturing activity.

The first part pertains somehow to your work criteria, such as washing and cleaning. However, you may try to convince the officials to operate for a short while or span.

Kindly update.

Thank you very much, sir. It will be of great help. It will be of great help if a bit more light is thrown on the topic. As you know, sir, Inspector Raz is there to harass, not to help in the implementation of the law.