{"id":43669,"date":"2022-05-24T11:31:09","date_gmt":"2022-05-24T06:01:09","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=43669"},"modified":"2022-05-24T11:33:37","modified_gmt":"2022-05-24T06:03:37","slug":"is-a-factory-certificate-mandatory-for-a-business","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/is-a-factory-certificate-mandatory-for-a-business\/","title":{"rendered":"Is a Factory certificate Mandatory for a Business?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Not all businesses fall under the purview of the Factory Act of 1948. The said act regulates the entire aspects of the <a href=\"https:\/\/corpbiz.io\/factory-license\"><strong>Factory certificate in India<\/strong><\/a>. But, despite this well-known fact, some entities often come across a query about whether a Factory certificate is mandatory for a Business or not? Well, it entirely depends on the nature of the operation and the compliances they served under given legislation. To better understand this concept, let us drill down the applicability of Factory certificates in detail.<\/p>\n\n\n\n<p>Commercial establishments, hotels, eating houses, and warehouses have nothing to do with this license. They are needed to abide by the provisions of other legislation such as the Shop and Establishment Act, <a href=\"https:\/\/corpbiz.io\/fssai-license\"><strong>food license<\/strong><\/a>, and trade license. Simply put, a Factory certificate is mandatory for establishments that deal with production-related activities.<\/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\/is-a-factory-certificate-mandatory-for-a-business\/#What_is_Factory_certificate_and_which_authority_grants_it\" >What is Factory certificate, and which authority grants it?<\/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\/is-a-factory-certificate-mandatory-for-a-business\/#What_are_the_registration_formalities_under_the_Factory_Act_1948\" >What are the registration formalities 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-3\" href=\"https:\/\/corpbiz.io\/learning\/is-a-factory-certificate-mandatory-for-a-business\/#Benefits_of_Factory_certificate_from_owner_and_employees_viewpoint\" >Benefits of Factory certificate from owner and employees&#8217; viewpoint<\/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\/is-a-factory-certificate-mandatory-for-a-business\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Factory_certificate_and_which_authority_grants_it\"><\/span>What is Factory certificate, and which authority grants it?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the <strong>Factory Act, 1948<\/strong><sup><a href=\"https:\/\/www.indiacode.nic.in\/handle\/123456789\/1530?sam_handle=123456789\/1362\"><strong>[1]<\/strong><\/a><\/sup>, the Factory certificate is a mandate for entities who have; <\/p>\n\n\n\n<ol><li>Ten or more workers in its production\nfacility driven by power on any day of the preceding 12 months or <\/li><li>Twenty\nor more workers are serving the production undertaking in any facility without\nthe aid of power on any day of the preceding 12 months. <\/li><\/ol>\n\n\n\n<p>Before commencing the construction of a\nproduction facility, or in the case of expansion of the present facility, the\napplicant should apply for the approval of the factory plan and secure consent\nfrom the authority concerned for construction. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_registration_formalities_under_the_Factory_Act_1948\"><\/span>What are the registration formalities under the Factory Act, 1948? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following steps need to be followed by the applicant for\nsecuring the Factory certificate in India: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Submission of factory plan<\/h3>\n\n\n\n<p>The state government has the right to\nunderpin provisions around plan submission for a given facility. The provisions\nprovide for the chief reviewer&#8217;s and state government&#8217;s permission for the\nconstruction or expansion of any production facility. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Notice by occupier<\/h3>\n\n\n\n<ul><li>Manufacturing\nprocess type <\/li><li>Facilitate\nthe name &amp; addresses of the production facility and its owner<\/li><li>Contact\naddress of the person-in-charge <\/li><li>Machines\navailable in the production facility <\/li><li>Employees\nserving the establishment <\/li><li>Name\nof the manager<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Application for Factory certificate <\/h3>\n\n\n\n<p>The applicant seeking the Factory\ncertificate needs to submit the standard application form (Form 1) along with\nthe documents mentioned above and the prescribed fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4: Verification and inspection<\/h3>\n\n\n\n<p>The inspection process shall be conducted\nin two phases: In the first phase, the Deputy Factories Director shall go\nthrough the application and proposal to make some compliance checks. Once done,\nthe said official will forward his\/her finding along with the application to\nthe senior person, i.e. Director.<\/p>\n\n\n\n<p>The Director concerned shall conduct the\nsecond-phase investigation under which he\/she will go through the deputy\ndirector&#8217;s findings and the concerned documents. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5: Grant of license<\/h3>\n\n\n\n<p>After successful vetting, the licensing\ndepartment shall grant the Factory certificate. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Factory_certificate_from_owner_and_employees_viewpoint\"><\/span>Benefits of Factory certificate from owner and employees&#8217; viewpoint<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Factory\ncertificate makes sure that the rights of the workers remain intact and\nprotected<\/li><li>A Factory\ncertificate safeguards workplace integrity and ensures an eco-friendly\nenvironment for the workers.<\/li><li>Factory\ncertificate underpins a proper legal framework for the factory owners so that\nthey can stay compliant with the underlying norms.<\/li><li>Even\nthough it is a mandate, a Factory certificate ensures various benefits for the\nlicensee, such as increased credibility and improved market presence.<\/li><\/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 it is clear from the above that the Factory certificate is generally secured by a production facility (power or non-power based) in India. Its applicability also depends on the number of workers serving the facility. Thus, it can be concluded that the Factory certificate is not a mandate for all types of businesses in India.<\/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\/license-for-plywood-factory-in-up\/\">An Overview of License for Plywood Factory in UP\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Not all businesses fall under the purview of the Factory Act of 1948. The said act regulates the entire aspects of the Factory certificate in India. But, despite this well-known fact, some entities often come across a query about whether a Factory certificate is mandatory for a Business or not? Well, it entirely depends on [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":43671,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[484],"tags":[2369],"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":3141,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43669"}],"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=43669"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43669\/revisions"}],"predecessor-version":[{"id":43684,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43669\/revisions\/43684"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/43671"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=43669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=43669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=43669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}