Starting a Small Garment Business in Bangalore: What Registrations Do We Need?

Dear All,

My friend and I have started a small garment manufacturing unit as a partnership firm under the name of our wives in Bangalore. We currently employ 3 tailors on a piece-rate basis, 1 supervisor on a monthly salary, and 1 helper on weekly wages, totaling 5 people, along with the two of us working as managers.

I seek clarification on the following points:
1. Do I need to register my unit under the Shop and Establishment Act or the Factory Act? I understand that registration under the Factory Act is required for more than 9 employees, but my unit is involved in manufacturing garments, which has led to my confusion. Kindly clarify this for me.
2. Do I need to register for PF and ESI?
3. Do I have to deduct TDS from the employees?

Thank you.
Dinesh

You may have to avail Factory Act, ESI, EPF, PT Registrations, Sales tax, etc. Before deducting TDS, you need to have a TAN Number. TDS varies in nature based on the services you receive. For salaried employees, there is a Slab system, exemptions, savings, etc. Only later can you calculate TDS.