Factory License

Factory License

Factory License in Karnataka: Legalities and Paperwork

calendar10 Nov, 2022
timeReading Time: 4 Minutes
Factory License in Karnataka: Legalities and Paperwork

Factory license is among the mandatory license required by all production units (power or non-power-driven) operating in Karnataka. Operating without this license can cause legal trouble for the factory owner. Therefore, a factory license is an absolute necessity for all production facilities. Let’s explore how to get the Factory license in Karnataka and its associated paperwork.

Interplay between Factory License in Karnataka and Factory Act, 1948

Factory license is granted by the Department of Factories, Boilers, Industrial Safety & Health, Government of Karnataka, against submitting a duly-filed form and the applicable fee. The fee structure and licensing procedure relating to a Factory license differ state-wise. The factory license in Karnataka falls under the Factory Act 1948, which governs and regulates the following areas:

  • Worker’s well-being
  • Wages offered to the workmen
  • Workplace Hygiene
  • Holidays and overtime of the workers
  • Safety protocols to be incorporated at the workplace
  • Amenities accessible to the worker

Who is mandatorily required to secure a Factory license in Karnataka?

Factory license mandatory for;

  • Firms (Power-driven) with 10 or more workers on board
  • Firms (non-power driven) with 20 or more workers on board

As mentioned earlier, the grant of the factory license is not possible without the prior approval of the premises in question. Thus, the consent for establishment plays a decisive role in the grant of a factory license in Karnataka.

Mandatory Documentation to be furnished by the applicant for Plan Approval

Below is the list entailing the mandatory documents to be arranged by the applicant for the plan approval:

  • Factory Plans
  • Challan (fee for approval of plans)
  • Detail about the manufacturing process
  • Flowchart concerning the manufacturing process
  • Possession Certificates such as rental agreements or lease deed
  • Questionnaire
  • A stability Certificate (needed for pre-existed buildings)
  • KSPCB clearance
  • NOC accorded by the respective Fire department
  • Permit accorded by the local governing bodies such as Village Panchayat/ Municipal Corporation/KIADB
  • PESO certificate (aka Petroleum and Explosive Safety Organization)
  • Any other applicable documents

Note: The Occupier must secure written approval before setting up the production facility in Karnataka. Approval is also needed for the extension of the production facility or the addition of newer machinery.

Documents to be furnished by the applicant for the factory license

The list below reflects the compulsory documents for securing the factory license in Karnataka

  • Registration fee (challan)
  • DIC registration certificate
  • VAT registration certificate
  • AOA and MOA (if the unit adheres to the norms of the Companies Act, 2013)
  • Partnership Deed (if the unit falls under the Partnership Act 1932)
  • Government order confirming an individual as Occupier (for State and Central Government-run entities)
  • List of partners and directors along with their address proof

Steps involved in Factory License Registration

To obtain the factory license, an applicant needs to undergo two fundamental steps given below:

Step 1: Secure Consent for establishment: Authentication of Plan and Approval to construct the premises to be considered as a production facility

Step 2: Obtain consent for operation: Availing of a legal permit under the Factories Act 1948.

Step-By-Step Guide for securing a Factory License in Karnataka

The application filing procedure for factory registration in Karnataka begins with the obtainment of approval concerning the factory plan. Here’s how the applicant can proceed;

  1. Head to the Karnataka FBIS portal[1] and click on the New User option
  2. The user registration form will flash on the screen,  prompting the applicant to fill in basic details such as Occupier name, DOB, contact number, factory name, and so on.
  3. Hit the Submit button to receive the portal credentials on the mobile.
  4. Use the said credential to log in to the Karnataka FBIS portal.
  5. On the dashboard, select service followed by form 1
  6. Fill in the required information in form 1 and click save; once done
  7. Upload the documents mentioned above
  8. Upload challan or head to the Khajane-2 link for the fee submission
  9. Post application submission, note down the unique case number for application tracking
  10. The inspection phase will be initiated, which may also include on-site vetting
  11.  Post successful vetting, the authority will stamp their approval for the proposed plan by facilitating the approval letter.

Application procedure for securing a Factory License in Karnataka

  1. Head to the online portal called Karnataka FBIS and complete the login formalities via the received credentials.
  2. On the main page, select the option called Non-Hazardous from Registration of Factories & Issuance of License.
  3. Fill in details in the e-form and hit the save button
  4. Upload the required documents in the accepted file format and then click on the submit tab.
  5. Furnish the applicable fee either via challan uploading or using the Khjane-2 link. Do not forget the specify the payment mode in the e-form.
  6. Post application submission, note down the acknowledgement number for application tracking.
  7. After an error-free outcome of a detailed inspection conducted by the officials, the authority will grant the license in a soft copy.

Fee structure relating to a Factory License in Karnataka

The licensing authority i.e. Department of Factories, Boilers, Industrial Safety & Health, Government of Karnataka, takes the following factors into account for the fee estimation.

  • Number of Years
  • Men Count
  • Women Count
  • Power available to the facility
  • K.W. of Electric Factories or attached Heating Circuits or Power Houses

The applicant can head to the authority’s portal and use the estimation tool to determine the applicable fee.

Use Khajane-2 for online fee payment and challan generation.

The applicant needs to pay the applicable fee for securing a factory license in Karnataka and plan approval. Also, the applicant must upload the challan during the application filling phase. You can furnish the applicable amount via the online portal- Khajane-2 and secure Challan.

To submit the online fee, head to the portal called Kanatake FBIS. On the dashboard, opt for the Khajane-2 option. The portal will land you on the new page. To secure the challan, you need to render mandatory information relating to purpose, department, and remitter.

The challan will be generated as soon as you hit the submit tab. You must secure the hard copy of the same as it will be required during the application filing for the factory license.

Conclusion

Factory license in Karnataka acts as a mandatory legal permit for all the production facilities in the state. Any negligence with respect to this license can cause legal trouble for the factory owner. Therefore, it is of paramount importance to stay in line with underlying legalities mentioned under the Factories Act 1940.

Read Our Article:Factory License Registration: Legalities and Benefits

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