Formalities For Company's Location Shifting

Respected Seniors, experts, and colleagues,

Our company has planned to shift from one industrial area to another industrial area within the same district 3 months from now. Being an HR executive here, management has asked me to fulfill and comply with mandatory statutory compliance as well as formalities. I do have a basic idea of what all formalities are to be met, but I assume that practically the picture would be different. The things which are going in my mind are:
- Updating factory license
- Updating company records with EPFO
- ESIC
- Updating records in the license of the labor contractor
- Notifying the local corporation or taluka panchayat for Professional Tax

Request you to please guide me with a detailed checklist/procedure for the same. Thanks in advance!

Sincere regards,
Harshavardhan

Dear Harsh,

Yes, you have to obtain a fresh factory license and surrender the existing one. You are required to get the map approval as well. Additionally, you need to complete contractor registration and obtain a license for the new address. If the new address is in the same area as the regional ESIC office, your ESI number will remain the same, and you will need to inform them accordingly. Don't forget to give intimation to EPFO as well.

Thank you.

Dear Harsh,

As suggested by Mr. Malik, please do more things in respect of your business shifting. Since your organization is a factory and governed by factory rules, first get your new location approved for the new site from the local Taluka as well as the administrative body of the industrial area. Confirm your plant layout and building plan approved from the Office of the Directorate of the Factory, along with NOC from the local Fire Department and the Factory Inspector.

After the physical verification of the plant and management policy for on-site emergency plan, he may issue a fresh factory license because, as narrated by you, you people are closing the business on the old site.

After completing all the above formalities, you may go ahead for updating the address for ESI and PF registration.

Thanks

Dear Harshavardhan,

I've just attached the relevant provisions of Gujarat Factories Rules below which are self-explanatory; pl. go thru' these rules. For any further details, you may contact the area Inspector and follow his guidance.

Rule 113. Information regarding closure of factories
(1) The occupier and the Manger shall be jointly or severally responsible for sending information in duplicate, to the Inspector of any intended closure of
the factory or any shift, section or department thereof, immediately after it is decided to do so, and before the closure takes place stating:
(a) the date of intended closure;
(b) the reasons for closure;
(c) the number of workers on the muster-roll of the factory on the day the information is sent;
(d) the number of workers likely to be affected by the closure; and
(e) the probable period of closure;

Rule 3. Approval of Plans— (for the factory to be occupied afresh)
(1) An application for obtaining previous permission for the site on which the factory is to be situated and for the construction or extension of a factory shall
be made to the Chief Inspector of Factories.
Application for such permission shall be made in Form No. I, which shall be accompanied by the following documents:
(a) A flow chart of the manufacturing possess supplemented by a brief description of the process in its various stages;
(b) Plants in duplicate drawn to scale showing—
(i) the site of the factory and immediate surrounding including adjacent buildings and other
structures, roads, drains, etc.;
(ii) the plan elevation and necessary cross-sections of the various building, including all relevant
details relating to natural lighting, ventilation and means of escape in case of fire. The plants shall
also clearly indicate the position of the plant and machinery, aisles and passage ways; and
(c) such other particulars as the Chief Inspector may require.

Rule 4. Application for registration and grant of License— (for the factory to be occupied afresh)
(1) The occupier or manager of every factory to which the Act applies shall submit to the Chief Inspector an application in triplicate in form No. 2 for the registration of the factory accompanied by an application in Form No. 3 for the grant of a License therefore
(2) Every application in Form No. 2 shall be accompanied by a treasury receipt, a crossed cheque, a crossed Indian Postal Order or as the case may be, an invoice for book adjustment, for payment of the fees for the purpose as specified in the Schedule 3.

Regards,
K.A.Thariq Muhamed Salim
(Deputy Chief Inspector of Factories - retd., Chennai)