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vikram singh (advocate)     31 December 2008

difference between company and factory

 any body pls help me,

1.what is the difference between company and factory.

2.can any body sue the company by saying it a factory.

3. if the company is registered under companies Act can it be sued under factory act.


 3 Replies

Manish Singh (Advocate)     31 December 2008

factories are defined as those establishments where 10 or more workers are employed using energy and also where 20 or more workers are employed without any use of energy to any manuacturing activity which incleds alteration of raw material etc into a new produsts and relevat conditions under the factories act. a compnay has to be registered as a factory if it is engaged in any manufacturing activity. so if registered as a factory it shall be sued under the relevant labour laws.

but if not registered as a factory it may still be sued under relevant applicable labour laws.

Mohit chawla (PRACTICE)     31 December 2008

Company is an artificial person exists only in eyes of law. In case of private company, 2 or more persons can register a company under companies Act with minimum paid up capital of Rs. 1,00,000 to avoid the mal-practice of establishment of Shell companies. and in case of public company 7 or more persons are required to constitute it.

Where a factory is carrying a MANUFACTURING PROCESS by 10 or more persons with the aid of power and 20 or more without the aid of power.

A company is only created under Compaies Act, 1956 , not under any other Act . e.g. societies Act, Factories Act. so to sue a company filing of complaint must be under the ambit of companies Act.


I do agree with the opinion of my Ld. Friends.

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