Due to the initiatives that are taken by the Government of Uttar Pradesh, approximately 35% of the factories that took part in the online application process initiative are plywood factories, veneers, etc. This helps in the growth of net Plywood manufacturing in the state of Uttar Pradesh.
This will also lead to demand for wood and timber that will henceforth benefit the farmers and production companies in the related field. This will also result in demand for other wood-based products such as Particle Boards, Medium Density Fiber Boards, etc. which will enhance the competition in neighbouring states estimated to be within the next few years.
There are a lot of registrations and licenses involved in establishing a factory. One of the most essential Acts is The Factory Act of 1948. According to Factory Act, 1948, all the manufacturing companies that own any factory in Uttar Pradesh have to compulsorily register their property area with the local governing authority of UP before any initiation of business. The Chief Inspector (CI) of the Labour Commissioner Organisation grants the necessary license after the registration of the factory is completed.
The procedure for registration and License for Plywood factory in Uttar Pradesh is mentioned under Section 6 of Factories Act, 1948, which states –
- Detailed depiction of production lines or business strategies of any class must be submitted to the Chief Inspector or The State Government.
- Substitution or growing of any plant or manufacturing machines within stated limits won’t be charged furthermore for augmentation of the factory whenever associated with a safe work environment and favourable conditions.
The manufacturing companies that own any factory in Uttar Pradesh also have to mandatorily comply with the rules enacted by the State Government of Uttar Pradesh set in U.P. Wood Based Industries (Establishment and Regulation) Rules, 1978.
Promotion of Online Submissions for Licensing of Wood-Based Production Factory Applications
In June 2018, The Government of Uttar Pradesh sent an invitation for online application submission for the purpose of licenses in –
- Saw Mills
- Veneer
- Plywood
- Veneer along with Plywood
- Stand Alone Chipper
- Medium Density Fiberboard (MDF) or High Density Fiberboard (HDF)
- Particle Board
- Medium Density Fiberboard (MDF) or High-Density Fiberboard (HDF) along with Particle Board
Upon the arrival of the due date of the online applications submissions, i.e., 15th June 2018, 13433 out of 15000 applications were accepted for authentication. On 12th December 2018, the Government of Uttar Pradesh granted licenses to 815 applicants in the business of manufacturing wood-based products of the list mentioned above.
What is Factory License?
The government of India enacted the Factory Act, 1978[1], for the underprivileged workers to maintain safety and provide favourable working conditions. According to the act, it is mandatory for all the factories to register their factory property with the local authority. This license is issued by The Factories and Broilers Department, which is authorised to ensure a safe work environment and maintain their welfare and health.
Advantages of Factory License
The following are the advantages of having a Factory License –
- Specific Act, i.e., Factory Act, 1987, dedicated towards the workers
- Legal Advantages for protection against exploitation of workers
- Enhancement of Productivity
- Regulation over genuine issues such as –
- Working Time Period
- Payment System or Daily Wages
Eligibility Criteria for License for Plywood Factory In UP
There is a grant of License for Plywood Factory in UP if the following criteria are met –
- The factory must have employed ten or more workers for production purposes or power usage.
- The factory must have employed twenty or more workers for purposes other than production or power usage.
Registration Process of License for Plywood Factory in UP
Below mentioned are the documents required for the registration procedure for a License for Plywood Factory in UP –
- Establishment Photograph
- Identification Proof
- Director Identification Number (DIN) or Permanent Account Number (PAN) Card
Bank Name or Treasury Challan
- Leaves and Holidays
- Protection of exploitation against young children and women
- Employment and Termination of workers
- Any Terms and Conditions that need to be maintained for specific factories as per requirement
- Maintenance of Equality
Issuance of Factory License for Plywood Factory in UP
Below mentioned are the documents required for an Issuance of Factory License for a Factory being set up in Uttar Pradesh–
- Form I; Detailed Outline of the Factory Room
- Detailed Layout of the Factory Building Plan
- Identification Proof of the applicant
- Address Proof of the applicant
- PAN or Adhaar Card of the Applicant
- Applicant’s Passport Photo
- List of all the directors of the company
- Electricity Bill
- Rental Agreement, if any
- Memorandum of Association (MoA) of the Company
- Article of Association (AoA) of the Company
- Board Resolution of the Company
- Account Details of the required Bank
- Work Commencement expected date
- Receipt of all the Payments
- Land Deed of the factory
- Consent Letter for all the required Authorities
- Registration Certification of the Company
- Detailed Information on all the hazardous and Non-Hazardous waste generated from the factory
- A Copy of the Company’s PAN details
- Layout of the Factory Building
- Detailed Information on the Raw Materials used in the product being produced in the factory
- Flowchart of the Production Process of the product being produced in the factory
- Tax Receipt of the taxes applicable
Approval of Site Plan for License for Plywood Factory in UP
Below mentioned are the documents required for an Approval of the Site Plan for a Factory being set up in Uttar Pradesh–
- Form I; Detailed Outline of the Factory Room
- Form I Questionnaire
- Stability Certification
- Fire NOC
- Uttar Pradesh Pollution Control Board (UPPCB) NOC
- Diagram of the Process Flow
- Local Authority NOC
- Other Department NOC, if any
- Copy of Building Layout
- Electrical Safety NOC
- Ownership Proof of Factory Property
- Site Notification
- MoA of the Production Company
- List of all the Directors of the Production Company
- Declaration of the Occupier Resolution
- Report on the safety Measures Taken
- Emergency Plan Layout of the Factory On-Site
- Policies regarding Safety and Health Measures
Renewal of License for Plywood Factory in UP
The granted License for Plywood Factory in UP is valid for only one year and has to be registered again following the same registration procedure.
Below mentioned are the documents required for the renewal procedure for a License for Plywood Factory in UP –
- Form IV
- Form IV B
- Online Challan or Treasury
Penalty for Violation of Factory Act, 1948
In case of violation of any law, rule or regulation by anyone that falls under the Factory Act, 1948, then the following penalties are to be implicated that can be either of both–
- Imprisonment, which can extend to a year
- Fine that could extend for up to one lakh
Additional Licenses Needed
There are multiple required licenses needed for the establishment of a factory and the processing of company requirements for running their business in any State of India. Some of the essential and mandatory documents are listed below –
- Business Registration Proof
- Tax License
- GST Certificate
- Trade License
- Trademark License
- Fire Department NOC
- Environmental Department Clearance
- Uttar Pradesh Pollution Control Board (UPPCB) NOC
- Local Authority NOC
- Other Department NOC, if any
- Electrical Safety NOC
- Declaration of the Occupier Resolution
- Report on the safety Measures Taken
Conclusion
After approval of the License for Plywood Factory in UP, if any changes are made regarding the extension of the factory or any new construction work, a detailed report has to be submitted either offline by registered post or online by the Web Portal to the State Government of UP or the Chief Inspector. If there is no response from the State Government of UP or the Chief Inspector within a month from the date of applying, the application is assumed to be approved. If not approved, within thirty days of the date of application, the registered applicant shall be notified through email or SMS, and the applicants will be required to submit the application again, rectifying the mistakes or may be required to apply in person.
Read our Article:Factory License Registration: Legalities and Benefits
