Re-Joining, Joining of employees - offer letter of ABC PVT LTD before the Factory License approval or Not?

umesh-vaishnav1
Good Evening All, I have a question? Our Company applied for the Factory License. It is going to be PVT. Ltd asap. My question is that Some of the employees joined in Sept 2020. Shall we give him/her an offer letter of ABC PVT LTD before the Factory License approval or Not? Kindly help me.
rkn61
If ABC PVT LTD is approved by Registrar of Companies and if the forms pertaining to registration of Name is processed by the Central Registration Centre (CRC), you can issue offer letter in the name of new Company.
bijay_majumdar
Private ltd company is formed under Companies act through ROC.
If you are not registered and not formed the company how can you issue the appointment letters in the name of pvt ltd.
A company registered under factororis act only specifies the type of business you are in and the license thereof only states that yours is a factory and the factory will abide by the rules and regulation therein.
loginmiraclelogistics
Hi Umesh,
Are you ready with your letter heads with the ABC P.Ltd with logo etc. If yes, you can issue the offer, mentioning the fact (as 'in the process of registration'). There is no harm. After all some employees are required to carry out the formalities of registration itself, isn't? Such advance preparations, such as preparation of docs like Memorandum & Articles of Association, formation of Board, share capital mobilisation, PAN, address & ID proof, readying the premises, pre-production arrangements etc. have to be arranged before filing application for registration and gets regularised once ROC certificate is recd. & commencement of operations. There is no impropriety or illegality in doing so. All these expenses, fees etc will be treated as "Preliminary Expenses" and amortised in due course. Even for filing of application for grant of factory licence also so many docs have to be filed. Who will do all the formalities without engaging the required personnel.
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