Shop and establishment license or factory license: Which one do you need to set up small manufacturing plant?

Posted under: MSME
Date: 2023-11-20
Shop and establishment license or factory license: Which one do you need to set up small manufacturing plant?

The Factory Act and the Shop and Establishment Act are distinct legislative frameworks governing diverse aspects of business operations, employment, and labor conditions. The Factories Act primarily focuses on regulating manufacturing processes, ensuring worker welfare, and mandating registration for specific factories. In contrast, the Shop and Establishment Act, governed by each state, mandates a fundamental business requirement—registration for shops, commercial establishments, offices, and various venues involved in the sale of goods and services. This includes online businesses, which must obtain the license within 30 days of commencement, serving as crucial documentation for business recognition and facilitating financial processes. The Shop and Establishment Act and Factories Act mandate compliance for various entities, while the Factories Act requires factory registration for worker welfare and government benefits.

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