Can We Have Separate Licenses for Manufacturing and Office Floors? Seeking Guidance

Dear All, My company is going to relocate to a new premises. On one floor, manufacturing activities will be carried out, while on another floor, administration, finance, and HR activities will take place. Up to this point, we have only obtained a license under the Shop and Establishment Act. We are in the process of applying for a license under the Factories Act.

Licensing Query

My question is whether we can have two separate licenses: one under the Factories Act for the floor where manufacturing activities will be conducted, and another license under the Shop and Establishment Act for the office floor. Alternatively, do we need to have only one license under the Factories Act and surrender the Shop and Establishment license? What would be the effect of this?

Your guidance on this matter would be greatly appreciated.

Thank you.

Since both the manufacturing activity and the administrative functions are carried out in the same building or within the same premises, you can have only one registration, or, a registration under the Factories Act.

Madhu.T.K

As indicated by Mr. Madhu, you should apply for a factory license since the premises will now be the same. In fact, I assume the new premises will serve as both your registered office and factory.

Please ensure you take care of administrative procedures, especially if you have been following different procedures for the office and factory until now, as employees may tend to compare.

Regards

No need to have two different licenses for the same organization in one building. It is enough to have a factory license covering all the employees' strength in the said license.

V. Murali

Dear sir,

Since the factory and office are associated and are part and parcel of the same organization, only the Factories Act will be applicable.

P K Sharma

I appreciate the views you all have put in. Apart from trades related to factories, we have other services that are not related to manufacturing activities. So, considering this point, can we apply for a separate license under the shop and establishment act?