Can Same Company Registered With Company Act And Factory Act Both ?

Dear Seniors,

I am working with a carpet and rugs manufacturing company that employs a total of 300 individuals across various departments such as HR, IT, Admin, Accounting, and Marketing. Additionally, there are approximately 60 laborers involved in the carpet manufacturing or finishing processes on the office premises.

Is it possible for the same company to be registered under both the Company Act and the Factory Act?

KS

Company Act is related to the "formation of the entity," while the Factory Act is related to the "manufacturing process." There are many more acts to be followed under labor laws.

Please explain with simple words and reply with a simple "yes" or "no"?

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Basically, an entity is like a private limited or limited company that is regulated and registered under the Companies Act. Once a company is formed, it can establish a factory under the Factories Act, which deals with the welfare, health, and safety of the workers.

M. S. Sankhla
Labour Law Consultant
Gurgaon
#9810414165

Yes, you are required to obtain a license for the Factories Act. If your company has already started, they must have a registration certificate under the Companies Act.

If you manufacture carpets, you should certainly register as per the Factories Act. At the same time, if your establishment is owned by a single person or is an arrangement by two or more persons sharing profits based on a given ratio, then there is no need to register under the Companies Act.

Registration under the Companies Act is a prerequisite for forming a company, either as a private limited company or a public limited company. It is only after forming a company that manufacturing or other operations can commence. Therefore, if your establishment is a company registered under the Companies Act, 1956, it must also register as required under the Factories Act to carry out any manufacturing activity.

It is not necessary for the ownership of the establishment to be in the form of a company in order to engage in manufacturing operations; it can also be a proprietorship (with a single owner) or a partnership (with more than one owner, subject to a maximum of 20 partners).

Madhu.T.K

Yes, it can be.

Because a factory is the place where a company manufactures the things it deals with, hence both acts will be applicable.

In simple words, if you want to register a second company with the same name, it is not possible as only one company can be registered with a unique name. There should be some difference between both. Instead, you can add another unit as a branch and the first as a registered office.