{"id":41766,"date":"2022-04-02T11:49:03","date_gmt":"2022-04-02T06:19:03","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41766"},"modified":"2024-12-12T18:36:07","modified_gmt":"2024-12-12T13:06:07","slug":"factory-license-applicability","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/factory-license-applicability\/","title":{"rendered":"Factory License Applicability: Mandatory Facts"},"content":{"rendered":"\n<p class=\"has-drop-cap\">As per the Factory Act, 1948, every factory owner should register their facilities with the authority concerned before starting the operation. Such license serves as a legal consent for performing production related activities in a given state. In this write-up, we shall discuss factual conditions about the Factory License applicability in detail. <\/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-applicability\/#Factory_License_applicability_for_Factory_owners\" >Factory License applicability for Factory owners<\/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-applicability\/#Benefits_offered_by_the_Factory_license\" >Benefits offered by the Factory\nlicense<\/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-applicability\/#Online_Process_of_Securing_Factory_License\" >Online Process of Securing Factory License<\/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-applicability\/#Penalties_in_case_of_non-conformity_with_the_underlying_Acts_norms\" >Penalties in case of non-conformity with the underlying Act&#8217;s norms<\/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-applicability\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factory_License_applicability_for_Factory_owners\"><\/span>Factory License applicability for Factory owners<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Further, the Act states that every\nfactory owner should compulsorily secure consent from the respective Labour\nDepartment for their building plan before it becomes eligible for registration.\n<\/p>\n\n\n\n<p>The Act sets out provisions for <strong><a href=\"https:\/\/corpbiz.io\/factory-license\" title=\"Factory License\">Factory license<\/a> <\/strong>registration and renewal to ensure full-proof safety of workers.<\/p>\n\n\n\n<p>As per section 2(m), the term\n&#8220;factory&#8221; refers to premises including the precincts thereof-<\/p>\n\n\n\n<p>(i) wherein ten or more manpower are\nserving or were engaged on any day of the past 12 months, and in any part of\nwhich a production undertaking is being performed on with the help of power, or\nis ordinarily so performed, or <\/p>\n\n\n\n<p>(ii) wherein 20 or more workforce are\nserving or were engaged on any day of the past 12 months, and in any part of\nwhich a production undertaking is being performed on with the help of power, or\nis ordinarily so performed, or \u2013but does not entail a mine subject to the\nactivities of Mines Act, 1952 (XXXV of 1952) or a mobile facility of the armed\nforces, a railway running eating place or restaurant; <\/p>\n\n\n\n<p>To simply put, every factory falling under said Act should secure a factory licence if: <\/p>\n\n\n\n<p>10 or more worker is engaged with the\nproduction undertaking driven by the power on any day of the past 12 months or;\n<\/p>\n\n\n\n<p>20 or more workers are engaged with\nproduction-related activities (a non-power-driven facility) on any day of the\npast 12 months. <\/p>\n\n\n\n<p>The applicant should authenticate the\nfactory plan and secure consent for construction before initiating construction\nwork, factory reconstruction, or factory expansion projects. <\/p>\n\n\n\n<p>This is all about the factory license\napplicability. Now let&#8217;s drill down the common benefits rendered by this\nlicense. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_offered_by_the_Factory_license\"><\/span>Benefits offered by the Factory\nlicense<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Enables factory owners to underpin an apt safety framework for the workers, which inherently leads to increased production <\/li>\n\n\n\n<li>Prevent factory owners from breaching workers&#8217; rights since such misconduct leads to severe penalties cited under <strong>Factory Act, 1948<\/strong><\/li>\n\n\n\n<li>Diminishes the chances of being penalized, thereby keeping the owners on the toes all time. <\/li>\n\n\n\n<li>Offers a win-win proposition for the owners as well as workers. <\/li>\n\n\n\n<li>Helps in adhering to underlying conditions of Act, thereby ensuring better labour management <\/li>\n<\/ul>\n\n\n\n<p><strong><em>Now, let&#8217;s proceed to the factory license registration process. <\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Online_Process_of_Securing_Factory_License\"><\/span>Online Process of Securing Factory License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol>\n<li>Visit the State\u2019s labor department portal and create your account <\/li>\n\n\n\n<li>Tap on the option called \u201cOnline registration and renewal <\/li>\n\n\n\n<li>Next, the factory registration application form shall open on the page.<\/li>\n\n\n\n<li>Submit the site plan as per Factory Act, 1948. Common documents required for site plan approval include; <\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<ul>\n<li><a href=\"https:\/\/corpbiz.io\/fire-department-noc-in-india\" title=\"Fire Department NOC\n\"><strong>NOC of Fire<\/strong><\/a><\/li>\n\n\n\n<li>NOC from the respective SPCB<\/li>\n\n\n\n<li>Process Flow Diagram<\/li>\n\n\n\n<li>NOC From Explosive Department<\/li>\n\n\n\n<li>NOC From Local Authority<\/li>\n\n\n\n<li>NOC From Electrical Safety<\/li>\n\n\n\n<li>Building Drawing Copy<\/li>\n\n\n\n<li>Proof for factory\u2019s ownership<\/li>\n\n\n\n<li>Notification of Site<\/li>\n\n\n\n<li>List of Directors<\/li>\n\n\n\n<li>Memorandum Article<\/li>\n\n\n\n<li>Resolution for the Occupier\u2019s declaration<\/li>\n\n\n\n<li>Safety Report<\/li>\n\n\n\n<li>Health and Safety Policy<\/li>\n\n\n\n<li>On-Site Emergency Plan<\/li>\n<\/ul>\n\n\n\n<p>5. After submitting the site plan, proceed to file factory registration form. Common details to be included in the registration form are as follow;<\/p>\n\n\n\n<ul>\n<li>Factory name and address <\/li>\n\n\n\n<li>Nature of proposed manufacturing process to be carried out in the next 12 months<\/li>\n\n\n\n<li>Detail of products to be manufactured at the plant<\/li>\n\n\n\n<li>Detail of proposed workforce (individual-basis)<\/li>\n\n\n\n<li>Proposed power required by the facility (in Horse Power)<\/li>\n\n\n\n<li>Detail of person in charge or manager <\/li>\n\n\n\n<li>Detail of&nbsp; partner\/directors\/authorized signatory depend on the type of business type<\/li>\n<\/ul>\n\n\n\n<p>6. Calculate the application fee on the portal per se and attach the required documents<\/p>\n\n\n\n<p>7. Once done, proceed to payment to submit calculated application fee <\/p>\n\n\n\n<p>8. After that, the inspection formalities shall come to effect. It will be conducted by the joint team of inspectors from different departments. The said verification also includes on-site inspection as well. <\/p>\n\n\n\n<p>9. After inspection process, the report of the same shall be shared with the authority concerned. <\/p>\n\n\n\n<p>10. After thoroughly comprehending the report, the authority may or may not grant the license to the applicant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_in_case_of_non-conformity_with_the_underlying_Acts_norms\"><\/span>Penalties in case of non-conformity with the underlying Act&#8217;s norms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If any individual is found guilty of\nbreaching underlying norms of the factories act 1948, then he\/she shall be\nsubject to the penalties as prescribed by the Act. In general, the following\npenalties are levied on the defaulters in case of non-compliance. <\/p>\n\n\n\n<ul>\n<li>Jail\nterm up to one year (based on the level of non-compliance) or; <\/li>\n\n\n\n<li>Monetary\nfines up to one lakhs or; <\/li>\n\n\n\n<li>Both<\/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>So this is all about the factory license applicability and other underlying rules under the Factory Act, 1948. Keep in mind that the non-availability of a factory license attracts severe penalties. So it is advisable to secure the same on a prompt basis to avert such consequences. Connect with the <a href=\"https:\/\/corpbiz.io\/\" title=\"Corpbiz Advisory\"><strong>Corpbiz<\/strong><\/a> associate in case you need some professional assistance. <\/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\/factory-license-registration-legalities-and-benefits\/\">Factory License Registration: Legalities and Benefits\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As per the Factory Act, 1948, every factory owner should register their facilities with the authority concerned before starting the operation. Such license serves as a legal consent for performing production related activities in a given state. In this write-up, we shall discuss factual conditions about the Factory License applicability in detail. Factory License applicability [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":41769,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[484],"tags":[2225],"acf":{"service_id":"387"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"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.","postViews":8239,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41766"}],"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\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41766"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41766\/revisions"}],"predecessor-version":[{"id":67841,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41766\/revisions\/67841"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41769"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}