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Factory License

Pankaj Tyagi
| Updated: 02 Jun, 2022 | Category: Factory License

Complete Checklist for factory license Registration in India

Checklist for factory license
Reading Time: 4 minutes

As per the Factories Act, 1948, all production facilities must register with competent local authority, i.e. labour department. The said Act also provides for prior approval of the site plan from the Director of Factories to construct a new production facility. Keep in mind that the Director of Factories functions under the administrative control of the Commissioner of Labour. This write-up comprises the complete Checklist for factory license Registration that will help you cater to different requirements with ease.

Eligibility Checklist for factory license registration 

As per the Factory Act, 1948, factory license registration is mandatory for;

  • Entities (driven by power) and have a workforce comprising of a minimum of 20 workers
  • Entities dealing with the production of Hazardous products
  • Entities dealing with the production of Non-Hazardous products
  • Non-power driven Entities with a workforce comprises of a minimum of 40 workers

Documentations Checklist for factory license registration

Registration related documents

  • Memorandum of Association & Article of Association in case of entity registered under the Companies Act, 2013
  • Partnership Deed in case of Partnership firm
  • List of partners/Directors;
  • Health and Safety Policy
  • Resolution for declaration of occupier;

Process of Factory license registration

Step-1 Visit the Online Single Window Portal and register to the same by creating a new account.

Step-2 Open the application form

Step-3 Add a unit

Step-4 Tap on the option “Permissions/ NOC’s/ License”

Step-5 Select the facility

Step-6 Open the e-form for registration and fill out the same with legitimate information.

Step-7 Calculate the application fee and submit the e-form

Step-8 Click the option “pay the consolidated fee”

Registration of proposed building plan under Factories Act, 1948

The approval of the proposed building plan from the Director of the Factories is mandatory before commencing the construction work of the factory. Here’s how you can apply for the same:

Note: the onus of approving the proposed building plan lies on the followings;

  • Factories which are operational via power and have 40 or more workers
  • Non-power driven factories have 20 more workers

Step-1 Visit the Online Single Window Portal and register to the same by creating a new account.

Step-2 Open the application form

Step-3 Add a unit

Step-4 Explore “Permissions/ NOC’s/ License”

Step 5 Select the unit

Step-5 Choose Proposed Building Plan to open the e-form

Step-6 Fill out the e-form and attach the documents discussed below

Step-7 Submit the form.

Step-8 the certificate shall be granted by the authority after the on-site vetting.

Documents required for Building plan approval

  • Site Plan Approval documents
  • Certificate of Stability
  • NOC of Fire
  • NOC from the pollution department
  • Process Flow Diagram
  • NOC i.e. No objection certificate from local competent body
  • NOC granted by the respective Explosive Department
  • NOC granted by competent departments
  • NOC From Electrical Safety
  • Building Drawing Copy
  • Proof of tenancy of factory establishment
  • Memorandum Article
  • Notification of Site
  • List of Directors
  • Resolution for the declaration of Occupier
  • On-Site Emergency Plan
  • Safety Report
  • Health and Safety Policy

Safety and Welfare Checklist for Factory license holder

The following safety and welfare measures will be observed when a factory license is obtained;

Safety Measures as per Factories Act, 1948 Welfare Measures as per Factories Act, 1948
Machinery fencing Washing facilities
Working near machinery that is in motion First aid services during emergencies
Prohibition of women and young adults near hazardous machinery Rest areas
Protection of eyes, ears and other sensitive body parts during work hours Crèches, canteens & lunchrooms for all the workers
The casing of new machinery Presence of adequate toilet 
Protection of eyes Facilities for drying and storing clothing
Fire Prevention plan First-aid appliances.
Effective management of Pits, sumps openings in floors, etc. Compensatory holidays
Preventive measures for preventing exposure to dangerous fumes, gases, etc Intervals for rest

Pre and Post-registration compliance checklist for factory license holder

  • Every factory license holder is liable to maintain an adult employee register. Such registers should comprise the details like worker’s name, nature of work, working shift, etc.
  • The work timing for employees in a registered factory should not surpass the duration of 9 hrs. The net timeline also includes the rest time and lunch.
  • Every worker shall be entitled to overtime wages if their work timing exceeds the duration of 9 hrs.
  • No employer is liable to support the arrangement of overlapping shift
  • A production facility with over 500 workers is bound to set up an ambulance room of a prescribed size. The said facility should be equipped and staffed as per the Factories Act, 1948[1].
  • The person-in-charge should contain any imminent danger reported by a worker through swift remedial action. Such events should be reported to the nearest inspector as well.
  • Entities dealing with hazardous production of any kind are liable to constitute a safety committee to promote proper health and safety at the workplace. the safety committee is also responsible for reviewing measures taken to contain any health or safety hazards
  • Factories where exposure to chemical and toxic substances is more prevalent need to contain such exposure corresponding to a value cited in the second schedule. Also, there should be an arrangement of qualified personnel who will be liable to oversee the management of toxic substances present in the workplace.
  • Factories dealing with chemical and toxic substances are liable to formulate health safety policies for the workers and share the same with the Chief inspector.
  • There should be an on-site emergency plan in place to avert emergency situations.
  • Factories that generate a considerable volume of hazardous dust, gas, fume or vapour should have an accumulation system in place.
  • There should be a proper enclosure for a manufacturing process which is vulnerable to the explosion.

Conclusion

Factory license serves as a mandatory approval in cases like the establishment of the new production facility and an extension of present facility. The approval of the site plan from the chief inspector plays an essential role in the factory license registration. We hope that the aforesaid checklist for the Factory license has resolved all your registration and document-related queries. If you seek further assistance on the checklist for factory license registration, then write to us via comment box.

Read our Article:Factory License Registration: Legalities and Benefits

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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