{"id":39757,"date":"2022-02-02T12:43:48","date_gmt":"2022-02-02T07:13:48","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=39757"},"modified":"2024-12-12T18:30:31","modified_gmt":"2024-12-12T13:00:31","slug":"factory-license-registration-legalities-and-benefits","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/","title":{"rendered":"Factory License Registration: Legalities and Benefits"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Intending to protect the\nworkers and to assure that the factory owners are giving their workers a\nhealthy and sound work environment, the government has introduced the Factory\nAct 1948. As per the act, before starting the factory, every factory owner must\nregister their premises with the local authorities. In this article, we will\npen down what is Factory License registration, its rules and benefits in detail?\n<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/#What_is_Factory_License_Registration\" >What is Factory License Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/#Requisite_Details_for_obtaining_the_Factory_License_Registration\" >Requisite Details for obtaining the Factory\nLicense Registration-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/#Guidelines_to_be_followed_by_factory_owners_under_the_Factory_Act_1948\" >Guidelines to be followed by factory owners\nunder the Factory Act 1948-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/#The_Key_criteria_before_the_grant_of_Factory_License\" >The Key criteria before the grant of Factory License-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/#Advantages_of_Getting_a_Factory_License\" >Advantages of Getting a Factory License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/#Measures_to_be_taken_under_the_Factory_Act1948\" >Measures to be taken under the Factory Act,1948<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/factory-license-registration-legalities-and-benefits\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Factory_License_Registration\"><\/span>What is Factory License Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the <strong>Factories Act, 1948<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Factories_Act,_1948_(India)\"><strong>[1]<\/strong><\/a><\/sup>, Factory License registration is proof of approval given by the government to carry out the manufacturing activities, and it is mandatory to obtain the Factory License. This Act was established to regulate rules and make sure all factories act following the rules and safety guidelines as specified by the Act. A <a href=\"https:\/\/corpbiz.io\/factory-license\" title=\"Factory License\"><strong>factory license<\/strong><\/a> is an approval that permits running a factory in a particular premise and area. In India, any person or organization who wants to use any location to run a factory has to get a Factory license by the authorities before commencing any business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requisite_Details_for_obtaining_the_Factory_License_Registration\"><\/span>Requisite Details for obtaining the Factory\nLicense Registration-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following requisite\ndetails are required at the time of Factory License-<\/p>\n\n\n\n<ol>\n<li>Name and address of the Factory Owner.<\/li>\n\n\n\n<li>Details of the manager who will run the factory.<\/li>\n\n\n\n<li>Disclosure of number of employees to be hired.<\/li>\n\n\n\n<li>Disclosure of type of manufacturing activity to be carried out\nin the factory.<\/li>\n\n\n\n<li>Any other information required for close monitoring.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Guidelines_to_be_followed_by_factory_owners_under_the_Factory_Act_1948\"><\/span>Guidelines to be followed by factory owners\nunder the Factory Act 1948-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At a snail\u2019s pace, the\nmanufacturing industry has seen a continuous boom in its growth throughout the\ncountry. Various schemes like \u2018Make in India\u2019 have given an outbreak to this\nindustry, which is now the 5th largest manufacturing country worldwide by the\nend of this year. The Authorities requires that the below-mentioned types of\nfactories shall adhere to the Factory Act 1948.<\/p>\n\n\n\n<ul>\n<li>Factories with Ten or more workers involved in manufacturing activity with the power consumption on any day of the preceding 12 months&nbsp;<\/li>\n\n\n\n<li>Hazardous products and Non-Hazardous products<\/li>\n\n\n\n<li>Factories with Twenty or more workers involved in manufacturing activity without the power consumption on any day of the last 12 months<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Key_criteria_before_the_grant_of_Factory_License\"><\/span>The Key criteria before the grant of Factory License-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before granting the <a href=\"https:\/\/corpbiz.io\/learning\/complete-checklist-for-factory-license-registration-in-india\/\" title=\"Factory License Registration\"><strong>Factory License registration<\/strong><\/a>, the authority shall consider the below-mentioned points-<\/p>\n\n\n\n<ul>\n<li>To protect the workers&#8217; health and to assure that the working culture is safe.<\/li>\n\n\n\n<li>Cleanliness, Hygiene, and the premise shall be free from dust and toxic gases.&nbsp;<\/li>\n\n\n\n<li>Proper facility for drinking water.<\/li>\n\n\n\n<li>Well-maintained toilets and urinals for the workers(Female and Male).<\/li>\n\n\n\n<li>Proper arrangement for rest house if the workers in the factory are more than 150.<\/li>\n\n\n\n<li>If the workers in the factory are more than 250, then canteen should be arranged.<\/li>\n\n\n\n<li>Fire-extinguishing arrangements on the premises<\/li>\n\n\n\n<li>Weekly off to the workers.&nbsp;<\/li>\n\n\n\n<li>Appropriate working hours.<\/li>\n\n\n\n<li>Maintaining the attendance register for every worker working in the factory.<\/li>\n\n\n\n<li>Providing the benefit of paid leave to the workers at the rate of one day for 20 days. Also, in the case of overtime, they should be paid double the rate.<\/li>\n\n\n\n<li>Restriction of child labor in the factory.<\/li>\n\n\n\n<li>Appropriate working hours for Women.<\/li>\n\n\n\n<li>Proper training to the Workers in terms of safety.<\/li>\n\n\n\n<li>Once a year, a Health check-up of all workers working in hazardous category factories is mandatory.<\/li>\n\n\n\n<li>Conducting an awareness Program for the safety of the workers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Getting_a_Factory_License\"><\/span>Advantages of Getting a Factory License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Getting a factory license\nregistration is beneficial to all the employees working in such factory as it\nensures the safety and well-being of these workers. Some of these advantages include-<\/p>\n\n\n\n<ol>\n<li><strong>Avails Legal Benefits provided by the government<\/strong><\/li>\n\n\n\n<li><strong>Provisions for Employees considering their salaries, health, and safety.<\/strong><\/li>\n\n\n\n<li><strong>Proper compliances enhances the Productivity of the workers<\/strong><\/li>\n\n\n\n<li><strong>Provides equality to all employees<\/strong><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Measures_to_be_taken_under_the_Factory_Act1948\"><\/span>Measures to be taken under the Factory Act,1948<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The following safety and\nwelfare measures will be observed while providing a factory license-<\/strong><\/p>\n\n\n\n<p><strong>Safety Measures to be\ntaken by the Factory Owner<\/strong><\/p>\n\n\n\n<ul>\n<li>Protection of sensitive body parts during work hours<\/li>\n\n\n\n<li>Prohibition of workers (especially women and young adults) near hazardous machinery<\/li>\n\n\n\n<li>Trained experts to work near machinery that is in motion<\/li>\n\n\n\n<li>Machinery barricade.<\/li>\n<\/ul>\n\n\n\n<p><strong>Welfare Measures under\nthe Factory Act<\/strong><\/p>\n\n\n\n<ul>\n<li>Day-care, canteens, and cafeterias for all the employees.<\/li>\n\n\n\n<li>Sitting facilities and rest areas<\/li>\n\n\n\n<li>Emergency Assistance<\/li>\n\n\n\n<li>Washing and drying facilities<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the Factory License registration obtained under the Factories Act 1984 is governed by the Ministry of Labor and Employment. Obtaining a Factory license is mandatory for all the factories eligible for it. It was established to ensure that the Factory owners and their workers are well protected. Also, in case of any issues, proper safety measures are taken. The work in the factory can be monotonous and hazardous, and workers are often overburdened and less paid. The Factory license makes sure that not even a single worker is being exploited, and the factory is well inspected by the government.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/factoring-regulations-amendment-bill-2020-introduced-in-lok-sabha\/\">Factoring Regulations (Amendment) Bill, 2020 Introduced in Lok Sabha\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Intending to protect the workers and to assure that the factory owners are giving their workers a healthy and sound work environment, the government has introduced the Factory Act 1948. As per the act, before starting the factory, every factory owner must register their premises with the local authorities. In this article, we will pen [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":39761,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[484],"tags":[2100],"acf":{"service_id":"387"},"authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220303-WA0005.jpg","authorDescription":"A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.","postViews":6680,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39757"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=39757"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39757\/revisions"}],"predecessor-version":[{"id":67837,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39757\/revisions\/67837"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/39761"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=39757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=39757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=39757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}