Hello, a manufacturing unit employs fewer than 10 workers and uses approximately 80 HP of power. Is it mandatory for them to apply for factory registration and a license? What will happen when they cross 10 employees?
Thanks in advance for your response.
From India, Aurangabad
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14Thanks in advance for your response.
From India, Aurangabad
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Factory License Requirements
Factory license is mandatory, but the licensing authority only changes. If you take the license with fewer than 10 employees, it will be possible to obtain it from the district officer. However, if you apply for registration with more than 10 employees, you will have to get it from the state headquarters.
Regards,
Madhu.T.K
From India, Kannur
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Factory license is mandatory, but the licensing authority only changes. If you take the license with fewer than 10 employees, it will be possible to obtain it from the district officer. However, if you apply for registration with more than 10 employees, you will have to get it from the state headquarters.
Regards,
Madhu.T.K
From India, Kannur
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At present you are not governed by FA Act.but once you have 10 workers an start production you have take license under the Act. varghese mathew 9961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Notification of Factories Act Application
The State Government can extend, by notification, the application of the Factories Act to any manufacturing unit, irrespective of the fact that they employ fewer than ten workers. Therefore, verify whether any such notification is in force in your state. In that event, you need to obtain a license and registration under the Act.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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The State Government can extend, by notification, the application of the Factories Act to any manufacturing unit, irrespective of the fact that they employ fewer than ten workers. Therefore, verify whether any such notification is in force in your state. In that event, you need to obtain a license and registration under the Act.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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I think you are confused with the Factory Licence and Factory Permit. The Factory Licence is under the Factories Act 1948. It is applicable if you engage 10/20 or more workers in the manufacturing process as defined. The Factory Permit is permission from a local authority, such as a Municipal Officer or District Officer, to run any workshop or factory, irrespective of the number of employees.
Clarification on State Government Provisions
According to my knowledge, there is no provision in the Factories Act which states that the State Government can extend, by notification, the application of the Factories Act to any manufacturing unit, irrespective of the fact that they employ fewer than ten workers. Please correct me if I am wrong.
Regards,
From India, Mumbai
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Clarification on State Government Provisions
According to my knowledge, there is no provision in the Factories Act which states that the State Government can extend, by notification, the application of the Factories Act to any manufacturing unit, irrespective of the fact that they employ fewer than ten workers. Please correct me if I am wrong.
Regards,
From India, Mumbai
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You can always contact the SSI or MSSI (Micro Small Scale Industries) office and inquire about the registration and legal formalities. Many exemptions are provided to Small Scale Industries and Micro Small Scale Industries. Since yours is a very small manufacturing unit, I feel you will come under SSI or MSSI. Please consult any expert in your city for more clarifications.
From India, Madras
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From India, Madras
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Dear Keshav Ji, Section 85 of the Factories Act grants the power to the State Government to extend the application of the Factories Act to certain premises where the manufacturing process is carried on. It reads as follows:
1) The State Government may, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply to any place where a manufacturing process is carried on with or without the aid of power or is ordinarily carried on, notwithstanding that:
i) the number of persons employed there is less than ten if working with the aid of power and less than twenty if working without the aid of power, or
ii) .................................................. ...........
To give an example, in exercise of the powers conferred by the above Section, the Government of Maharashtra extended the Factories Act to premises where the handling and processing of hazardous chemicals are carried on, irrespective of the number of persons employed in such a manufacturing process (Notification No. FAC-1085/(9782)Lab-4 dated 9th July 1985).
Thanks for clarifying the distinction between a factory license and factory permit.
Regards,
B. Saikumar
Mumbai
From India, Mumbai
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1) The State Government may, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply to any place where a manufacturing process is carried on with or without the aid of power or is ordinarily carried on, notwithstanding that:
i) the number of persons employed there is less than ten if working with the aid of power and less than twenty if working without the aid of power, or
ii) .................................................. ...........
To give an example, in exercise of the powers conferred by the above Section, the Government of Maharashtra extended the Factories Act to premises where the handling and processing of hazardous chemicals are carried on, irrespective of the number of persons employed in such a manufacturing process (Notification No. FAC-1085/(9782)Lab-4 dated 9th July 1985).
Thanks for clarifying the distinction between a factory license and factory permit.
Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Dear Saikumar ji, Thank you very much for your quick response and correcting me on fact of law. This is to way we all learn by actively participating in this forum. I admire you.
From India, Mumbai
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From India, Mumbai
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Factory License Requirements Under the Factories Act of 1948
Under the Factories Act of 1948, a factory is defined as precincts: "Whereon ten or more workers are working, or were working on any day of the preceding twelve months..." Clause "m" of Section 2.
If you anticipate an increase in your workforce to 10 or more workers within the meaning of the above definition, then you might as well complete all the related formalities and apply for a Factory License under the Factories Act.
Best Wishes,
Vasant Nair
From India, Mumbai
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Under the Factories Act of 1948, a factory is defined as precincts: "Whereon ten or more workers are working, or were working on any day of the preceding twelve months..." Clause "m" of Section 2.
If you anticipate an increase in your workforce to 10 or more workers within the meaning of the above definition, then you might as well complete all the related formalities and apply for a Factory License under the Factories Act.
Best Wishes,
Vasant Nair
From India, Mumbai
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Dear [Email Removed For Privacy Reasons], I appreciate your participation. Factory licenses and factory permits are statutory obligations, whereas registration under SSI or MSSI is, according to me, not statutory. The main purpose of registration under SSI or MSSI is to maintain statistics and a roll of such units for the purposes of providing incentives and support services.
The Micro, Small and Medium Enterprises Development Act, 2006
There is another enactment called The Micro, Small and Medium Enterprises Development Act, 2006. The object of this enactment is to facilitate the promotion, development, and enhancing the competitiveness of micro, small, and medium enterprises and for matters connected therewith or incidental. Under this Act, a micro or small enterprise or a medium enterprise engaged in providing or rendering services may file the memorandum to the authority at discretion.
I am not an expert in this area, but I tried to share the knowledge that I have.
From India, Mumbai
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The Micro, Small and Medium Enterprises Development Act, 2006
There is another enactment called The Micro, Small and Medium Enterprises Development Act, 2006. The object of this enactment is to facilitate the promotion, development, and enhancing the competitiveness of micro, small, and medium enterprises and for matters connected therewith or incidental. Under this Act, a micro or small enterprise or a medium enterprise engaged in providing or rendering services may file the memorandum to the authority at discretion.
I am not an expert in this area, but I tried to share the knowledge that I have.
From India, Mumbai
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If it is clear that you employ 10 or more workers in a day (24 hours) and use power for any manufacturing activity, you need to register under the Factories Act. There are certain judgments from the High Court and Supreme Court. If needed, I can share them with you.
From India, Mumbai
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From India, Mumbai
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Dear Sir, In our company above 10 workers bellow 20 workers as worked and we have Registered in SSI,Can we should be registration in factory act ? Kindly suggested. Warm Regard Pappu Sharma
From India, Jaipur
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From India, Jaipur
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For registration under the Factories Act, it is immaterial whether it is an SSI unit or not. The latter depends on investment, whereas the former depends on the number of employees employed. Therefore, you should get Factory Registration.
In some industries, like chemical, paints, etc., the number of employees to make it obligatory to get a Factory license is even less than 10.
Madhu.T.K
From India, Kannur
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In some industries, like chemical, paints, etc., the number of employees to make it obligatory to get a Factory license is even less than 10.
Madhu.T.K
From India, Kannur
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NEW SMALL FACTORIES ACT , 2014.pdf
Factories Act.doc