Overview of Factory License Renewal
For the past many years manufacturing Industry in India has seen tremendous growth. After the enactment of the Factory's Act 1948, the registration of factory premises was made compulsory with the competent authority before starting any business. Getting a license is a kind of approval from the competent authority to start the manufacturing process. The License is issued by India by the Department of Factories and Boilers. As per the provision of this Act, Registration and Renewal of factory licenses are done to ensure the safety and security of all workers.
The classification of the factory has been done as per Factory Act 1948; the License is required if the factory is involved in the production of hazardous & Non-hazardous products and has a minimum of 10 workers and consumer power or a Minimum of 20 workers and does not have to consume power. There are a number of benefits of getting a factory License. Like it will help in fighting any legal battle in case of any violation, a factory operating as per all norms and guidelines enhances the productivity of employees, regulate various matters like working hours, wages /payments, leaves, holidays, enlistments of juvenile /women, Hiring and Termination of work and many more.
Validity of Factory license
As per the Factories Act, Factory License is valid for one year from the date of registration. So every year, users have to renew their License. If the License gets expire, its Renewal is a mandatory requirement; the factory license takes a maximum of 60 days.
Documents required for Factory License Renewal
- Form No.2 in triplicate, duly filled-in and complete
- Fees and procedures for Renewal of a licence are the same as for grant of licence. The original receipt in GAR-7 is to be enclosed with the applications
- The original licence, for endorsement of Renewal. Please keep in mind that a laminated licence will not be accepted, and the management has to request for issue of a duplicate licence by depositing Rs. 100/- in GAR-7 as fees in addition to the renewal fees for a duplicate licence in such cases.
Procedure for Factory License Renewal
If the License has expired, the manufacturer is required to apply for a Renewal of Factory License. An Application of Renewal should be made to the directorate 30 days before the expiry of said License. In case the application for factory license renewal is not submitted on time, a late fee is charged, which is 25% of the requisite fee. Following is the process of Renewal.
Duly filled form 2 must be submitted.
Scrutiny of Application
The application form is then scrutinized by the competent authority.
If all the documents are in place, then after scrutiny, the approval process begins. Concerned authority post-inspection approves the application or Renewal of Factory license. Correction at this stage is done if any.
Attachment of Original license copy
Once all documents are in order and in the prescribed format then along with a copy of the Original License application form is submitted to the concerned authority.
Submission of an Application for Renewal
An application for Renewal of License complete in all respects is required to be made in advance and to be delivered to the Directorate of Industrial Safety & Health or must be applied online at least 30 days before the due date of expiry of the License, which is 31st December upto which the License has been granted/renewed/applied for Renewal. It implies that the by 30application must reach the office upto 30th November of the calendar year, in which the License expires.
The application process and preparation of Documents could leave any applicant confused and stuck. Our experts can help you mitigate those circumstances by rendering unmatched support. We are playing a pivotal role in helping in license approval and Renewal of License by providing end-to-end support to our clients pan India.
Frequently Asked Questions
An owner of a factory needs a factory License.
An application for Renewal of the licence is required to be made to the Directorate of Industrial Safety & Health, Labour Department, Govt. of NCT of Delhi, D-Block, Second Floor, 5, Sham Nath Marg, Delhi-110054.
A factory owner may get the licence renewed either for one, five or ten years at a time. F the application for Renewal has been made for five or ten years, the fees for Renewal will be charged five or ten times the fee payable specified in the Fee Schedule, as the case may be.
Factory means any premises wherein 20 or bove workers are working to carry out a manufacturing process with the help of powers OR whereon 40 or above workers are working to carry out a manufacturing process without the help of power. The Act is applicable to power looms, sawmills, certain industries which use hazardous chemicals, and certain processes carried out using flammable solvents by publishing a notification, even if the numbers of workers are less than 10.