Is a Factory License Necessary for Our Delhi Office? Seeking Advice on Compliance Issues

Dear Friends, we have a corporate office in Delhi which is registered under the Shop & Establishment Act. Recently, a Factory inspector visited our office and asked us to obtain the Factory license as well. We showed our Shop & Establishment registration and informed him that since we are not engaged in any manufacturing activity here, the Factory license would not be applicable.

However, the Factory inspector is still advising us to obtain the Factory license. As per my understanding, the Factory license should not be applicable. I kindly request your suggestions on the applicability of the Factory license here and any strong facts we can present to deal with the Factory inspector.

Thank you,

Regards, Navneet Kumar

Hello Navneet,

Please go through the discussion on the matter in this link - https://www.citehr.com/561318-regard...s-act-psu.html.

To my knowledge, since the corporate office is located away (and is not a 'Factory') and you mentioned that "no manufacturing is happening there" as per the Factories Act, I don't think your inspector is right in insisting on registration under the FA. Don't yield to his pressure. And what's your business, trading? Then you are right.

Corporate offices need not be registered under the Factories Act. However, all statutory registrations must be maintained under the Shops & Establishment Act.

Dear Friend,

It is not clear from your post from which angle the Factory Inspector advised you to obtain the factory license. I suggest asking the inspector to issue a letter to you for obtaining the factory license instead of registration under the Shop & Establishment Act. Upon receiving the letter, it will clarify the reasons for the recommendation to obtain the factory license. Until then, please remain calm.

Dear colleague,

Has the FI put his remarks in any Inspection book? If yes, reply to him stating that since no manufacturing activity is carried out on the premises of the establishment, it does not come within the purview of the Factories Act. If he has verbally told you, then sleep on it.

Regards,
Vinayak Nagarkar
HR Consultant

It appears he is targeting you to extract "something," posing as if you are violating inappropriate rules. I suggest that you maintain an inspection book and ask him to write down his remarks therein. You can then reply to his remarks after consulting your advocate. Alternatively, ask him to issue an official letter so that you can reply adequately. Also, check your registration certificate under the Shops Act and Professional Tax to see if it is still valid, expired, or needs to be renewed. Furthermore, adhere to the labor strength indicated therein. If it is different now, you should probably get it amended and renewed within the validity period.