Overview of Factory License
As per the Factory Act 1948 it is mandatory for every factory owner to register their premises with the local authorities before commencing their business. Factory License acts as a document of approval given by authorities to carry out manufacturing activities. Department of the Factories and Boilers issues Factory License. It is the duty of Factories and Boilers Department to keep a check on the health, safety and welfare of workers.
Factories Act 1948, says that a factory must obtain its building plan approval from the labor and employment department before covering themselves for a factory registration. Under this act, registration and renewal of the Factory license are also done to ensure the safety of workers.
The Factories Act, 1948
Section 6 of the Factories Act, 1948 defines the procedure for registration and license:
- Submit the detailed information of factories or business plan to the chief inspector or to the state government
- In case of replacement and growing of any plant within a stipulated time period, charges will not be imposed for the expansion of the factory if the factory is carrying its activity keeping the environmental conditions in mind
It is necessary for the below-mentioned factories to obtain factory license in the following circumstances:
- If the factory has ten or more workers involved in manufacturing activities
- If the factory has twenty or more workers, working without the use of power for manufacturing activities
Factory License Registration
Documents Required for Site Plan Approval
- Form-1 (Particular of Room in The Factory)
- Questionnaire To Form-1
- Certificate of Stability
- NOC of Fire
- NOC of UPPCB
- Process Flow Diagram
- NOC From Local Body/Local Authority
- NOC From Explosive Department
- NOC From Others
- Building Drawing Copy
- NOC From Electrical Safety
- Proof of Ownership of factory building premises
- Notification of Site
- Memorandum Article
- List of Directors
- Resolution for the declaration of Occupier
- Safety Report
- On-Site Emergency Plan
- Health and Safety Policy
Documents Required for Registration
- Photograph of Establishment
- Identity Proof
- DIN or PAN Card
- Treasury Challan/Bank Name
Documents Required for Renewal
- Treasury or online Challan
Registration Procedure for Factory License
Section 6 of the Factories Act has given authority to State government to govern rules related to the licensing and registration of factories under the Act on the following matters:
- Rules for Submission
The state government may make rules for the submission of plans or portrayal of manufacturing plants. The association requires past consent from the state government or Chief reviewer for the development or augmentation of any industrial facility. In any case, the expansion or substitution of existing hardware doesn't come into augmentation if doesn't decrease the protected working space and is additionally not dangerous to the wellbeing and soundness of the representatives.
- Nature of Plans and Fees Payable
The plans and details should be submitted for getting these consents (Permit applications). It recommends the nature and particulars of such plans, and from whom it will be confirmed. It likewise recommends the expenses payable for registration/licensing/renewal of licenses.
- Renewal of Licenses
The Act requires the time period to be provided before issuing or reestablishment of licenses. Section 7 of Factories act 1948 tells about the provisions identifying with this. According to this section, the occupier of the production line premises needs to serve a composed notification to the related specialists 15 days preceding involving the premises.
- Contents of Notice
- Genre of manufacturing process
- Provide name and address of factory and its owner
- Communication Address
- Horsepower put in the factory
- Number of employees
- Name of the manager
- Appointment of a New Manager
If you have appointed a new manager, the administration will properly and convenient illuminate this to the main auditor for example inside 7 working days of the joining. Nonetheless, without an assigned supervisor, we think about the occupier of the manufacturing plant as the administrator of the production line.
If the consent demand (properly finished) is sent to the state government or chief inspector by means of enlisted post, and if no correspondence has been sent in kind within 3 months of the sent date, at that point said application is considered to be approved. It is known as automatic approval.
Under the rule it is necessary for all the licensing authority to grant a license on the satisfaction of all legal requirements.
In case the Chief inspector will not allow consent to the development/expansion of the manufacturing plant then the candidate can re-offer to the state government about the same. Or on the other hand if the state government will not allow the authorization, at that point the candidate can re-claim to the central government. As far as possible for re-engaging is 30 days from the date of refusal.
Section 6 of the Factories Act work as an empowering tool for the government, it consists of certain rules and regulations that define licensing/construction/extension for the factories.
- Online Procedure for Factory Registration
Step 1: Stop by at the official website of the Labour Act Management System.
Step2: Take your cursor on the “Online Registration and Renewal” and click on it.
- Mention Login Details
Step 3: Mention your login details if you are already registered as a user. If not registered then register yourself as a user by providing following information:
Step 4: Once the registration is done you will be directed to the page of Factory Registration.
- Go Through the Instructions
Step 5: Read the instructions carefully before clicking the “Agree” button.
Step 6: Complete the registration process by following these two steps:
- Calculate Fee
Step 7: Calculate the amount of fee that you need to pay to proceed further.
Step 8: Click on “View Application” to go through the saved application form.
Step 9: Select the embedded security form to edit the form and where attachments and payments can be done.
- Attach the Documents
Step 10: To add files like photos or an identical form of letter click on “Attachment Button”.
Step 11: Click on “Choose file” button to open the attachment.
- Select Payment Mode
Step 12: To pay the premium click on “Payment” button. You are allowed to choose the suitable payment mode.
Step 13: If you choose to make payment via invoice then click on the invoice and download the invoice form and deposit it to the Treasury Bank of the respective district or you can also select online mode of payment.
Step 14: Choosing online can take you to the portal of the Treasury, there you can choose to pay without Registration and select the department.
- Payment Proof
Step 15: Once you are done with payment process scanned the copy and keep it as a proof of fee payment.
Step 16: Your application is successfully submitted.
Inspection of the site includes below-mentioned step by step process:
Identification of Establishments
Random computerised risk assessment technique is used to inspect the establishment.
Inspection by Joint Team
- Joint team of inspectors will conduct the inspection
- The team has minimum two inspectors in it and one of the respective authority, Assistant Labour Commissioner, Labour Enforcement Officer, Assistant Director Factory as per the availability.
- Inspection team submit the report on the departmental portal along with a unique number
- It is the duty of factories/establishments/units to manage the unique number and at the same time view and download the inspection report.
- In case of any non-compliance observed, department can issue notice to establishments/factories to rectify defects.
- Once the Compliance report is submitted by the Labour Department it is important for the establishment to perform the necessary compliance within 15 days and inform the Labour Department about the same.
Accepting the compliance report
In the event that an application is made for the approval of the site for development or expansion of the processing plant and required plans and details, have been put together by registerd post or through the portal to the State Government or the Chief Inspector and in case no answer received within one month from the date of utilization will be naturally affirmed. If not approved with thirty days from the date of application is rejected by the framework naturally and furthermore the email or SMS is sent to the registered candidate in such cases the candidate should resubmit the application structure by amending the mistakes or apply face to face.
Renewal of License
Factory License remain valid for one year, follow the above mentioned registration process to renew the application.
How Corpbiz will Help You?
Frequently Asked Questions
An owner of a factory needs a factory License.
Yes. A manufacturing factory employing 10 or more workers with the aid of power or 20 or more workers without the aid of power can be issued the factory license.