Hello everyone, I am planning to establish a small-scale garment manufacturing unit and a retail space in Gurgaon, specializing in women's casual wear for a niche market. I hold a professional degree in Fashion Designing. The business will operate as a Proprietorship Company, with a permanent workforce of fewer than 10 people. To facilitate this venture, I intend to apply for a loan from the Bhartiya Mahila Bank. My proposed unit will require the following machinery: five Juki Sewing Machines, one Juki Overlock Machine (5 thread), two Cloth Cutting Machines, one Garment Washing Machine, and two Inverters, among others.
Queries and Requirements
I have several queries I am hoping to get help with:
1. Do I need to apply for a Factory License under the Factories Act, 1948, for this setup?
2. The unit will operate without the aid of power. Does this affect any legal or operational aspects?
3. Will I require a No Objection Certificate (NOC) from the Pollution Control Board?
4. Regarding tax compliances, is it necessary for the unit to register for service tax, sales tax, PAN, and export tax, among others? I understand that a garment unit must register under the Child Labor (Prohibition and Regulation) Rules, 1986.
Any insights or advice regarding these matters would be greatly appreciated.
Best regards,
Madhumita
From India, Mumbai
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2Queries and Requirements
I have several queries I am hoping to get help with:
1. Do I need to apply for a Factory License under the Factories Act, 1948, for this setup?
2. The unit will operate without the aid of power. Does this affect any legal or operational aspects?
3. Will I require a No Objection Certificate (NOC) from the Pollution Control Board?
4. Regarding tax compliances, is it necessary for the unit to register for service tax, sales tax, PAN, and export tax, among others? I understand that a garment unit must register under the Child Labor (Prohibition and Regulation) Rules, 1986.
Any insights or advice regarding these matters would be greatly appreciated.
Best regards,
Madhumita
From India, Mumbai
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Hi Madhumita, It would be good if you apply for factory license, PAN, service tax etc. As it will be beneficial to you once your business starts expanding.
From India, Mumbai
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From India, Mumbai
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Pl. note views on your posts-
1) No comments on S.No.1, 2, 3, 4, 6. Here so because you can apply your wisdom which suits you. Law protects your decision. Go ahead. You need to have a license under the Shops and Establishment Act under S.10-forms for intimation, and there is no fee, but registration is available for 3 years as your strength is less than 10.
2) A factory license is not required at the moment. But washing machines and other appliances/machinery will be on the premises with the aid of power, and once you have more than 9 workers (male/female-direct/indirect), you will need a factory license.
3) You need to comply with the Pollution Control Board's NOC requirement as jobs like stitching are under the Green category; it's simple also.
3) Tax compliance - Please get these formalities done. Service Tax number and you can have access online with the use of your PAN card; the same will be faster also. If you are going to employ children, then you need to disclose under the Shops and Establishment Act initially while approaching for REGISTRATION NUMBER, and you have to ensure compliances like working hours, wages payment, health, safety, leaves, etc.
Best wishes and kind regards,
RDS Yadav
From India, Bareilly
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1) No comments on S.No.1, 2, 3, 4, 6. Here so because you can apply your wisdom which suits you. Law protects your decision. Go ahead. You need to have a license under the Shops and Establishment Act under S.10-forms for intimation, and there is no fee, but registration is available for 3 years as your strength is less than 10.
2) A factory license is not required at the moment. But washing machines and other appliances/machinery will be on the premises with the aid of power, and once you have more than 9 workers (male/female-direct/indirect), you will need a factory license.
3) You need to comply with the Pollution Control Board's NOC requirement as jobs like stitching are under the Green category; it's simple also.
3) Tax compliance - Please get these formalities done. Service Tax number and you can have access online with the use of your PAN card; the same will be faster also. If you are going to employ children, then you need to disclose under the Shops and Establishment Act initially while approaching for REGISTRATION NUMBER, and you have to ensure compliances like working hours, wages payment, health, safety, leaves, etc.
Best wishes and kind regards,
RDS Yadav
From India, Bareilly
Acknowledge(1)Amend(0)
Views on Your Posts
1. No comments on S. No. 1, 2, 3, 4, 6. This is because you can apply your wisdom as you see fit. The law protects your decision. Go ahead. You need to have a license under the Shops and Establishment Act under Section 10. Forms for intimation are available, and there is no fee, but registration is available for 3 years as your strength is less than 10.
2. A factory license is not required at the moment. However, washing machines and other appliances/machinery will be on the premises with the aid of power. Once you have more than 9 workers (male/female - direct/indirect), you will need a factory license.
3. You need to comply with the Pollution Control Board's NOC requirement as jobs like stitching fall under the Green category, which is simple.
4. Tax Compliance: Please complete these formalities. Get a Service Tax number, and you can access it online using your PAN card, which will be faster. If you are going to employ children, you need to disclose this under the Shops and Establishment Act initially when applying for a registration number. Ensure compliance with working hours, wage payments, health, safety, leaves, etc.
Best wishes and kind regards,
RDS Yadav
From India, Bareilly
Acknowledge(0)Amend(0)
1. No comments on S. No. 1, 2, 3, 4, 6. This is because you can apply your wisdom as you see fit. The law protects your decision. Go ahead. You need to have a license under the Shops and Establishment Act under Section 10. Forms for intimation are available, and there is no fee, but registration is available for 3 years as your strength is less than 10.
2. A factory license is not required at the moment. However, washing machines and other appliances/machinery will be on the premises with the aid of power. Once you have more than 9 workers (male/female - direct/indirect), you will need a factory license.
3. You need to comply with the Pollution Control Board's NOC requirement as jobs like stitching fall under the Green category, which is simple.
4. Tax Compliance: Please complete these formalities. Get a Service Tax number, and you can access it online using your PAN card, which will be faster. If you are going to employ children, you need to disclose this under the Shops and Establishment Act initially when applying for a registration number. Ensure compliance with working hours, wage payments, health, safety, leaves, etc.
Best wishes and kind regards,
RDS Yadav
From India, Bareilly
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Thank you, Mr. Yadav. Appreciate your help on this. I will take care of these legal formalities. I will not employ anybody less than 18 years of age; rather, I am planning to work with NGOs for women empowerment if possible.
If my permanent employees are fewer than 10 and with contract-based employees altogether exceeding 10, do I have any legal formalities regarding the registration process?
Regards,
Madhumita
From India, Mumbai
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If my permanent employees are fewer than 10 and with contract-based employees altogether exceeding 10, do I have any legal formalities regarding the registration process?
Regards,
Madhumita
From India, Mumbai
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As a Fashion Designing student, I have studied Apparel Manufacture Process and Apparel Marketing, and I have read Philip Kotler too (older version). Currently, I am trying to make my business plan work for me so that it can be funded. Why do we need a different business plan while applying for a loan? Your suggestions and feedback will be valued and highly appreciated.
Regards,
Madhumita
From India, Mumbai
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Regards,
Madhumita
From India, Mumbai
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Clarification on Factory License Requirements
The number is 9 or more for getting a license; it's not 10 or more. Furthermore, during any day in the year, if the total number of employees is more than 9 in any form, i.e., regular or through a contractor, the provisions of the Factories Act will be applicable. You can reach me at the number below if there are any issues at any time.
Best wishes,
Regards,
RDS Yadav
Advisor and Management Consultant
[Phone Number Removed For Privacy Reasons]
From India, Bareilly
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The number is 9 or more for getting a license; it's not 10 or more. Furthermore, during any day in the year, if the total number of employees is more than 9 in any form, i.e., regular or through a contractor, the provisions of the Factories Act will be applicable. You can reach me at the number below if there are any issues at any time.
Best wishes,
Regards,
RDS Yadav
Advisor and Management Consultant
[Phone Number Removed For Privacy Reasons]
From India, Bareilly
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FINANCIAL PLANNING.ppt
Legal Compliance Plan.xls