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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?
From India, Nagpur
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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

From India, Delhi
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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

From India, Gurgaon
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