Madhu.T.K
Industrial Relations And Labour Laws
Abhay_011
Professor
Ift38375
Hr Exe
Glidor
Hr Consultant
+3 Others

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Dear Seniors,
I am working with Carpet and rugs manufacturing company and there are total 300 employees (HR+IT+ADMIN+Account+Marketing).
there are around 60 labours to manufacture or finishing carpet in office premises. can same company registered with Company act and Factory act both ?
KS

COMPANY ACT is related with "formation of the entity" while Factory Act is related to "manufacturing process there are much more acts to be acts to be followed, under the labor laws
Please explain with simple words and revert with yes or no ?
Basically entity is like pvt Ltd or Limited company which regulated and registered under the Companies Act. And company is formed, then company can establish a factory under the Factories Act. The Factories act deals with Welfare, health and safety of the workers.
M. S. Sankhla
Labour Law Consultant
Gurgaon
#9810414165

Yes you are required to take License for Factories Act. If your company has started they must be having registration certificate under Companies Act.
If you manufacture carpets, certainly, you should take registration as per Factories Act. At the same time, if your establishment is owned by a single person or is an arrangement by two or more persons on an understanding that they share the profits on a given ratio, then no need to register under the Companies Act.

Registration under Companies Act is a prerequisite for forming a company either as private limited company or public limited company. It is after forming a company that manufacturing or other operations will start. Therefore, if your establishment is a company registered under the Companies Act, 1956, it should take registration as is required under Factories Act also in order to carry on any kind of manufacturing activity.

Again it is not necessary that in order to engage in a manufacturing operation, the ownership of the establishment should be as a company but it can be a proprietorship (with a single owner) or partnership (with more than one owner subject to a maximum of 20 partners)

Madhu.T.K

Yes. It can be. Because, factory is the place where company manufacture the things it deals. Hence both acts will be applicable.
In Simple Words if you want to register the second company with the same name it cannot be possible as only one company can be registered with the unique name there should be some difference between both.
instead you can add another unit as a branch and first as a registered office.

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