Small Factory Dilemma: Should We Register Under Shop Act or Factory Act in Maharashtra?

munot
A factory with less than 10 employees should be registered under which act - Shop Act Maharashtra or Factory Act? If under the Shop Act Maharashtra, then what must be the category - either shop or commercial establishment?
rdsyadav
Dear Mr. Munot,

Your query is confusing. A manufacturing unit with less than 10 employees is not classified as a factory; hence, no factory license is required under the Factories Act. In relation to your business, you are not obligated to obtain a factory license as the minimum threshold for such a license is 10 employees.

Regards,
RDS Yadav
Labour Law Advisor
Smita Sudheesh
Good Morning,

I also have a doubt about it. So for the above, if the Factory does not have a License to operate, is it legal? The employees working with the facility will be governed and protected under which law. In this connection, isn't it right to take a license showing 10 workers (i.e., paying fees for 10 workers), rather than not having a valid License at all? Correct me if I am wrong.

Please provide your valuable answer.

Thank You
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute