Do Shops and Establishments Really Need a Factories License? Seeking Guidance!

Hi, I am Shyam Kumar, working in a retail company as an HR and Trainer. I have a doubt: for Shops and Establishments, do we require a Factories License? Can anyone guide me on this?

You mentioned that you work for a retail company, i.e., you have retail outlets. In this case, you do not need a factory license. You will only need a registration under the Shops & Establishment Act. However, if you have a production facility, then you will need a factory license.

My response is based on the limited information you provided in your query.

Kind Regards,

Avika Kapoor
Vice President - Operations
Website: http://www.kapgrow.com

Dear Sir,

Thank you for your valuable answer. However, a couple of days ago, the Factory Inspector visited our premises and stated that we must apply for a license due to the presence of a cold room. This cold room is very small. We mentioned that it is not required for us, but he insisted, asking us not to argue and stating that it is necessary.

Our offices in Hyderabad and Vijayawada do not have such a room, and they have confirmed that it is not required there. Therefore, we are unsure why he is requesting this from us.

Thanks & Regards, Shyam Kumar

Dear All,

Can we apply standing orders to employees of the Shops & Establishments Act?

Thank you.

Dear Shaym,

The cold room does not have any connection with factory licenses. If you are conducting any manufacturing processes, either by using power with 10 workers or without power with 20 workers, then you fall under the Fact Act.

Deven_123,

Which state are you from? What is the employee strength of your company? The act is applicable based on manpower as defined by the state. It doesn't distinguish between factory and establishment.