Factory Licence & Industrial Compliance
Full assistance under the Factories Act, 1948: plant drawing approvals, Section 2(m) applicability filings, Form 2 licence registrations, annual renewals, and safety registers.
Shreemay Consultancy provides practical labour law and compliance support for businesses, including employment contracts, PF, ESI, gratuity, payroll compliance, statutory compliance and factory licence assistance.
Determine which core Indian labour legislations apply to your establishment based on total workforce headcount and operational classification.
Classification determines thresholds under the Factories Act vs. State Shops & Commercial Establishments Acts.
Need an official, written applicability report for audit documentation or board review?
Managing employees involves more than payroll. Businesses may need to manage employment documentation, labour-law requirements, statutory registrations, PF, ESI, gratuity, payroll processes and factory-related compliance. Shreemay Consultancy helps businesses understand and manage these requirements through practical, organized compliance support.
Full assistance under the Factories Act, 1948: plant drawing approvals, Section 2(m) applicability filings, Form 2 licence registrations, annual renewals, and safety registers.
Employer registration on Shram Suvidha, monthly ECR generation, Pehchan health card creation, wage ceiling structuring (INR 15,000 / 21,000), and Sections 7A/14B damage defense.
Drafting enforceable appointment agreements, proprietary NDAs, intellectual property assignments, and POSH-compliant company handbooks tailored to Indian employment jurisprudence.
Maintenance and periodic audit of Unified Registers (Forms A–D) under Ease of Compliance rules, unified annual return filings, and inspection representation before labour authorities.
Statutory audit of salary master records. Cross-referencing basic wages with state Minimum Wage & VDA notifications, Professional Tax slabs, and Labour Welfare Fund (LWF) contributions.
Principal employer registrations under CLRA Act 1970, contractor licence verification, and monthly vendor wage/challan audits to eliminate secondary liability.
Starting, operating or expanding a factory can involve multiple licensing, documentation and statutory compliance requirements. Shreemay Consultancy provides assistance with factory licence-related processes, documentation, renewals, inspection preparation and applicable factory compliance requirements.
Why corporate HR heads, CFOs, and manufacturing plant managers rely on Shreemay Consultancy.
Every establishment has unique workforce thresholds and geographic scopes. We assess applicability based on exact statutory headcount, power usage, and state-specific Factory Rules.
We structure all registers, returns, challans, and inspection logs to meet the exacting criteria of labour commissioners, factory inspectors (DISH), and EPFO/ESIC auditors.
We eliminate the friction between corporate HR workflows and statutory mandates, preventing penalty notices and operational stop-work orders without slowing business velocity.
Practical answers to common employer regulatory questions under Indian statutory acts.
Whether you need help reviewing employment contracts, managing PF and ESI compliance, improving payroll processes or understanding factory-related requirements, Shreemay Consultancy can help you identify the appropriate next steps.
Comprehensive guidance under the Factories Act, 1948. We assist manufacturing units with initial factory licence registration, annual factory license renewals, factory plan approvals, and statutory safety documentation across [CITY], [STATE], and industrial corridors in India.
A factory licence is a statutory authorization issued by the Chief Inspector of Factories (Directorate of Industrial Safety and Health / DISH) within the applicable state government. Governed by the Factories Act, 1948 (and respective state factory rules), this document certifies that an industrial premises is safe, structurally stable, adequately ventilated, and equipped to protect worker health and safety.
Operating a manufacturing process without obtaining a valid factory licence or failing to renew an expired license constitutes an offense under industrial safety laws, subjecting management to potential operational stoppage orders, compounding fees, and prosecution under Section 92.
Under Section 2(m) of the Factories Act, establishment obligations apply where manufacturing activities are carried on:
Premises where 10 or more workers are employed (or were employed on any day of the preceding 12 months) and where manufacturing operates with the aid of electric or mechanical power.
Premises where 20 or more workers are employed without the aid of electric power. Note: State-specific amendments may alter employee thresholds.
Preparation and submission of site drawings, machine layout schematics, ventilation calculations, structural stability certifications, and emergency exit routes to the Inspectorate of Factories.
Drafting and filing Form 2 applications, statutory fee calculations based on installed horsepower (HP) and maximum worker count, and coordinating inspection schedules with local DISH officers.
Facilitation of annual or multi-year licence renewals prior to statutory state cutoffs (typically October/November of the preceding calendar year) to avoid late fee surcharges.
Implementation of mandatory statutory registers: Form 7 (Health Register), Form 8 (Adult Worker Register), Form 11 (Notice of Periods of Work), lime-washing logs, and pressure vessel testing records.
Have an expanding manufacturing facility in [CITY] or [STATE]? Consult with our industrial specialists to ensure full licensing coverage.
Practical PF and ESI compliance support for employers, including registration assistance, documentation, contribution-related processes and ongoing compliance support under the Employees’ Provident Funds and Miscellaneous Provisions Act and the ESI Act, 1948.
Governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, EPF compliance requires every establishment employing 20 or more persons to obtain an establishment code and contribute 12% of basic wages + DA (matched by employer share) monthly.
Wage Ceiling Nuance: The statutory wage ceiling for mandatory membership is INR 15,000 per month. Managing employees earning above this ceiling requires structured opt-in declarations or wage bifurcation compliant with Supreme Court rulings on "basic wages".
Monthly Filings: Generation of Electronic Challan cum Return (ECR), UAN allotment, member KYC seeding, and timely payment before the 15th of each calendar month.
The Employees' State Insurance Act, 1948 provides social security benefits covering medical, maternity, and disablement care. Establishments employing 10 or more persons in notified areas must register and contribute for employees earning up to INR 21,000/month.
Employee contribution: 0.75% of gross wages. Employer contribution: 3.25% of gross wages.
Timely generation of Insurance Numbers and Pehchan identity cards to ensure immediate worker healthcare coverage.
Under the Payment of Gratuity Act, 1972, gratuity is payable to an employee on separation after rendering continuous service for not less than 5 years in any establishment employing 10 or more persons.
Statutory Formula: Gratuity is calculated
as:
(15 × Last Drawn Basic + DA × Completed Years
of Service) ÷ 26.
Employer Obligation: Ensuring accurate liability provisioning, submission of Form A notices of opening, and assessing group gratuity insurance structures.
Ensure timely monthly remittances and eliminate exposure to damages under Section 14B. Schedule an exploratory consultation.
Ensure your employment agreements, appointment letters, non-disclosure contracts (NDAs), and internal HR policies protect your business while complying with Indian employment laws and relevant judicial precedents.
Online templates drafted under US or UK legal principles frequently fail in Indian jurisdictions. The Indian Contract Act, 1872, the Industrial Disputes Act, 1947, and respective state Shops & Establishments Acts strictly govern terms of service, termination protocols, and retrenchment compensation.
Defining duties, probation terms, termination protocols, notice-period buyouts, and compensation breakdowns.
Trade secret protections, client list non-disclosure, and strict employer intellectual property vesting terms.
Agreements structured to clearly distinguish independent contractors from full-time employees, mitigating misclassification liabilities.
Policy manuals covering POSH (Prevention of Sexual Harassment) Internal Committees, leave encashment, and disciplinary procedures.
Have an advocate-led compliance specialist review your current employment letters and employee manuals for regulatory gaps.
Comprehensive statutory labour compliance management for commercial establishments and industrial units. From Shops & Establishments licensing to unified registers, returns, and inspection audits.
Commercial and industrial enterprises operate under an interconnected matrix of central and state legislations. Failure to maintain mandatory muster rolls, wage registers, deduction ledgers, and accident books exposes directors and proprietors to statutory show-cause notices and compounding fines.
Shreemay Consultancy handles the routine maintenance of these books—either physically or electronically in approved unified formats—ensuring continuous inspection readiness.
Unified record of employee demographics, nationality, education, date of joining, UAN, and ESI insurance numbers.
Rates of wages payable, gross earnings, overtime hours, and itemized statutory deductions (PF, ESI, PT, TDS, LWF).
Register of fines, deductions for damage or loss, and advances made to employees with recovery schedules.
Muster roll capturing daily shift attendance, weekly rest days, and compensatory leave records.
Under the Contract Labour (Regulation & Abolition) Act, 1970, principal employers can be held jointly liable for unpaid minimum wages, delayed EPF/ESI remittances, or accident liabilities incurred by third-party staffing contractors.
Audit your registers and vendor bills before a visit from a Labour Enforcement Officer (LEO).