According to the Factory, 1948, it is compulsory for every factory owner to get Factory License for their premises with the local authorities before starting their business. This License acts as an approval document given by the relevant authorities to carry out manufacturing activities. Department of Factories & Boilers grants Factory License. Factories Act 1948, says that a Factory should obtain its building plan approval from the labour & employment department before Factory Registration. In this Act, Factory Registration & Renewal are also done to ensure the workers’ safety. But, before The Registration of the Factory premise, the applicant must know all the vital documents required for Factory License. In this blog, we discuss crucial documents required for Factory License in India.
Factories Act, 1948 – Objective and Applicability
The objective of this Act is to regulate working conditions, to regulate health, safety welfare & annual leave & enact a special provision in respect of women, children & young persons who works in the factories.
The Factories Act is applicable to any factory where 10/more workers are working/were working on any day of the preceding 12 months & in any part of which a manufacturing process is being carried on with the help of power or is ordinarily so carried on, or whereon 20 or more workers are working or working on any day of the preceding 12 months and in any part of which the process of manufacturing is being carried out without the aid of power, but this doesn’t include a mine or a mobile unit belonging to the armed forces of the Union, a hotel or restaurant or any eating place.
Safety & Welfare Measures under the Factories Act, 1948
The following safety & Welfare Measures under the Factories Act, 1948 will be observed only when the owner of the Factory obtains a Factory License:
- Safety Measures Under the Act:
- Prohibition of women & young people near hazardous machinery;
- Protection of ears, eyes or any other sensitive body parts during working hours;
- Working near machinery that is in motion;
- Machinery Fencing.
- Welfare Measures Under the Act:
- Washing & drying facilities;
- Rest areas for sitting facilities;
- Canteens & lunchrooms for all the employees;
- First aid services during emergencies.
Requirements for Obtaining the Factory License in India
The owner of the Factory will be required to take consent in advance from the State Government where the owner’s Factory will be located. To be able to occupy the Factory Premises, the Factory owner will also require to send a legal notice to the Chief Inspector (CI) under Section 7 of the Factory Act. Following are the details that would be required during Factory Registration:
- Occupier’s Name;
- Occupier’s Address;
- Manager’s name;
- Number of employees that will be hired;
- Type of manufacturing process which shall be executed at the said Factory premise;
- Any other details which require close monitoring.
List of all the Documents Required for a Factory License in India
Following is the list of all the vital documents required for a Factory License in India:
- Documents Required for Factory License – For Site Plan Approval
- Application Form (Particular of Room in the Factory);
- Stability Certificate;
- Fire NOC;
- Process Flow Diagram;
- NOC from Electrical Safety Department;
- On-Site Emergency Plan;
- List of Directors;
- Site notification;
- Proof of Ownership of Factory Building Premises;
- Copy of Building Layout;
- NOC from Explosive Department;
- NOC from a Local Authority or Local Body;
- NOC of UPPCB;
- MOA (Memorandum of Association) and AOA (Articles of Association);
- Safety Report;
- Health & Safety Policy;
- Resolution for the Occupier’s Declaration;
- Documents Required for Registration:
- Establishment Photograph;
- DIN or PAN Card of the applicant;
- Identity proof of the applicant;
- Treasury Challan or Bank Name.
- Documents Required for Factory License Renewal
- Renewal Application Form;
- Old Factory License;
- Deposition of the License Fee.
Some Important Guidelines that should be followed by Factory Owners under the Factory Act
The Indian Government requires the following types of factories to adhere to the Factory Act, 1948:
- Factories with at least 10 workers & consumer power;
- Factories with at least 20 workers with no power consumption;
- Hazardous and Non-Hazardous products.
Factory Registration in India is done under the provisions of the Factory Act, 1984 and the same is operated by the Ministry of Labour & Employment. Obtaining a Factory License is compulsory for all & is essentially made to ensure that the owners & employees are safe while working in the Factory.
Read Our Article:Factory License Certificate: Requirements and Process