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Dear Sirs, Good day. Kindly note that I am working in a shipping company with its main office in Chennai. The company is registered in Chennai and is now planning to open a branch office in Delhi. Employees working in the Delhi office will have their salaries deposited in Chennai, and PF and gratuity will be deducted as per the laws.

Registration and Compliance Queries

Please advise if:
1) This branch office also needs to be registered in Delhi.
2) Any special points that are applicable as per the Delhi Shop and Establishment Act. Will the laws of Chennai also apply to employees in Delhi? Should copies of all Chennai forms be kept in the Delhi office?
3) Are there any special labor laws applicable as per the Delhi Shop and Establishment Act?

Please provide me with information on the above queries. Thank you in advance for your cooperation.

Best regards,
csn

From India, Mumbai
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As far as Central labor laws are concerned, you are okay complying with those at Chennai after registration at the central office of those laws. However, state labor laws have to be complied with as per state law.

Delhi Shops and Establishment Act

As for the Delhi Shops and Establishment Act, there is no need to worry about this. Up to now, you are required to comply with the registration without any late payment under the Delhi Shops and Establishment Act. You have to keep the records in the prescribed Form G and H, and certain other criteria must be followed as per the enacted law.

If you still have any queries, feel free to contact me for Delhi/NCR.

Regards,
Adv. Raj Singh Phogat

From India, Delhi
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Thank you very much for your information. However, I am unable to understand what needs to be done before we start the branch office in Delhi. If you could list out the requirements that need to be fulfilled from my end to comply with the state laws in a point-wise manner, I can then explain it to my head office and seek approval for the same. Once the head office has a clear understanding, we can utilize your services for the necessary tasks.

Thanks and regards,
csn

From India, Mumbai
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In addition to Central Taxation Laws (direct tax, indirect tax, service tax, excise, and customs), you have to comply with state taxation laws (value-added tax, Stamp Duty Act, State Excise Duty) as well as local body (MCD, NDMC, DDA) taxes applicable as per the nature of business.

Compliance with Labor Laws

I am attaching the list of labor laws of central and state enacted in India, and you have to comply with them as per their applicability to your nature of business.

Your company secretary will also handle the company returns of the branch office, so there is no need to worry about the same.

The applicability of laws to your nature of business will be clear after knowing the trade/business nature.

Thanks.

Regards,
Adv. Raj Singh Phogat
Labor Law Consultant
[Phone Number Removed For Privacy Reasons]

From India, Delhi
Attached Files (Download Requires Membership)
File Type: docx Existing Central and State Labour Laws in India.docx (12.4 KB, 1489 views)

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Dear Mr. Phogat,

Good evening, sir. Firstly, thank you very much for your reply. I am very grateful to you.

Further to the above query, please note the main job of this branch office is to provide manpower for working on the ship from North India to my head office and arranging all travel documents for them.

For your information, service tax is being paid by my head office in Chennai.

Please advise in this case which state laws I am applicable for or if I am exempted from complying with any of the state laws. All laws followed by my head office in Chennai are sufficient.

Thanks in advance for your reply on the above subject.

Thanks and regards,
CSN

From India, Mumbai
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I am replying with respect to the labor law legislation applicability concerning Delhi state as follows:

Central Acts and Record Keeping

1. Regarding The Employees' State Insurance Act, 1948, and The Employees' Provident Fund and Miscellaneous Provisions Act, 1952, there is no issue with the records being kept at the Chennai office, as these are central Acts and authorities.

Central Acts Accepted in Delhi

2. Concerning the following Acts, no state legislation has taken place, and the central acts are accepted and implemented by the central labor officers in Delhi:

a) The Contract Labour (Regulation and Abolition) Act, 1970
b) The Equal Remuneration Act, 1976
c) The Industrial Disputes Act, 1947
d) The Payment of Bonus Act, 1965
e) The Payment of Gratuity Act, 1972

For the Acts mentioned in point 2, you may maintain the records at the Chennai office in soft copy to present to the inspecting authorities whenever required. Display the relevant Annexures on the Notice Board as stipulated in the Acts and Rules.

State Acts and Implementation in Delhi

3. Regarding the following Acts, state authorities are the implementing authorities:

a) The Minimum Wages Act, 1948
b) The Payment of Wages Act, 1936
c) The Maternity Benefit Act, 1961
d) The Industrial Employment (Standing Orders) Act, 1946
e) The Workmen's Compensation Act, 1923
f) Delhi Shops and Commercial Establishment Act, 1954

The Acts in points 2 and 3 above are part of the State List of labor law implementation, and their compliances must be made in Delhi. However, you may comply with them at the Chennai office but keep the records in soft copy to show to the inspecting authorities whenever required. Display the relevant part of the Annexures on the Notice Board as stipulated in the Acts and Rules.

For any further queries, you may contact me.

Thanks,

Regards,
Adv. Raj Singh Phogat
[Phone Number Removed For Privacy Reasons]

From India, Delhi
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Good afternoon, Mr. Phogat. Thank you very much for all the valuable information provided by you. I have no words to express my gratitude. I am very grateful and highly obliged for your answers to my query.

Please reply to one more query: Am I required to register my office with NDMC, or is it not required as my business nature is that of a service provider and it is a branch office?

From all our discussions, I conclude that this branch office has no additional laws to comply with; everything can be managed at the head office in Chennai, and a copy of the same should be kept at the branch office.

Thanking you in advance for your reply to the above query.

Thanks and regards,
csn

From India, Mumbai
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You have to register yourself with the Delhi Shops and Commercial Establishment Act, 1954. Moreover, if you run the office for 365 days a year, then you have to apply for the exemption under sections 14, 15, and 16 of this act. You also have to apply to the labor commissioner for keeping the records in soft copy rather than hard copy so that you may not face any problems in operation.

In addition to the above, other state labor laws have to be complied with in due course and not immediately.

Thanks.

Regards

From India, Delhi
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Dear sir, Can u confirm that how to decide that from where we should get labour license. either from central or from state. WR// J.B.Singh
From India, New Delhi
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Could you please provide a list of registers under the Delhi (State) Contract Labour Act within the National Territory Act? I have checked through Google as well, but have not been able to obtain any information from the available resources.

Regards,
Sunil Choughule.

From India, Mumbai
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Dear Mr. Raj,

I am working with an educational institute in Delhi. However, we would like to start another new branch institute in Delhi itself. How do I proceed towards it? What are the local laws, and what documents will be required to start up with the new branch?

Many Thanks,
Gopesh

From India, New Delhi
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