{"id":44849,"date":"2022-06-28T15:28:08","date_gmt":"2022-06-28T09:58:08","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=44849"},"modified":"2024-12-12T18:17:07","modified_gmt":"2024-12-12T12:47:07","slug":"factory-license-certificate-requirements-and-process","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/factory-license-certificate-requirements-and-process\/","title":{"rendered":"Factory License Certificate: Requirements and Process"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Factories Act, 1948 has mandated that all factory owners need to register their factory area with the applicable local authorities prior to commencement of any business. The <a href=\"https:\/\/corpbiz.io\/factory-license\" title=\"Factory License\"><strong>Factory License<\/strong><\/a> is to act as an Approval Document that is issued by the respective authorities for carrying out operations in relation to the production of products.<\/p>\n\n\n\n<p>The Factories Act of 1948 states that all factories need to\nmandatorily acquire licensing from the Labour and Employment Department, under\nthe authorisation of the Government of India for getting the approval for the\nbuilding plan prior to applying for registration for the factory.<\/p>\n\n\n\n<p>The purpose of the Factory License Registration and the mandatory Renewal of the License is for ensuring the safety of the labourers employed. <\/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-certificate-requirements-and-process\/#Eligible_Criteria_for_Factory_License_Certificate\" >Eligible Criteria for Factory License\nCertificate<\/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-certificate-requirements-and-process\/#Advantages_of_Factory_License_Certificate\" >Advantages of Factory License Certificate<\/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-certificate-requirements-and-process\/#Documents_Required_for_Factory_License_Certificate\" >Documents Required for Factory License\nCertificate<\/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-certificate-requirements-and-process\/#Registration_Process_of_Factory_License_Certificate\" >Registration Process of Factory License\nCertificate<\/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-certificate-requirements-and-process\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligible_Criteria_for_Factory_License_Certificate\"><\/span>Eligible Criteria for Factory License\nCertificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In accordance with the <strong>Factories Act, 1948<\/strong><sup><a href=\"https:\/\/www.indiacode.nic.in\/handle\/123456789\/1530?sam_handle=123456789\/1362\"><strong>[1]<\/strong><\/a><\/sup>, a factory is mandatorily required to apply for the factories act if the following criteria are met &#8211;<\/p>\n\n\n\n<ul>\n<li>If a minimum of ten labourers are hired for the\npurpose of production activities along with the aid of power within the\npreceding twelve months<\/li>\n\n\n\n<li>If a minimum of twenty labourers are hired for\nthe purpose of production activities without any aid of power within the\npreceding twelve months<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Factory_License_Certificate\"><\/span>Advantages of Factory License Certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following pointers mentioned below are the advantages of\nissuing a Factory License Certificate &#8211;<\/p>\n\n\n\n<ul>\n<li>Acts as a proof provided by the municipality\ngranting approval for commencement of business<\/li>\n\n\n\n<li>It is a License that is often listed as\nmandatory for the issuance of other needed licenses that are necessary for\ngetting an approval for the production of the specific applicable products<\/li>\n\n\n\n<li>It is an essential license for running any factory\nthat also ensures the safety of the labourers employed<\/li>\n\n\n\n<li>Providing protection to the labourers in case of\nany violence that is in accordance with the penal provisions laid down under\nthe Factories Act, 1948<\/li>\n\n\n\n<li>Ensures that all workers employed are treated with\nequality.<\/li>\n\n\n\n<li>Enhance Productivity of labourers as the Factory License Certificate provides security to the\nworkers against any exploitation<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Factory_License_Certificate\"><\/span>Documents Required for Factory License\nCertificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following documents are required mandatorily for the issuance\nof the Factories License \u2013<\/p>\n\n\n\n<ul>\n<li>Duly filled Form &#8211; 1 along with stating the\nparticulars of the rooms of the factory<\/li>\n\n\n\n<li>A copy of the Building Plan of the Factory<\/li>\n\n\n\n<li>A passport\u2013size photograph of the authorised\npersonnel<\/li>\n\n\n\n<li>Identification details and the residential\naddress of the applicant<\/li>\n\n\n\n<li>List of all the Directors of the Company along\nwith their necessary details<\/li>\n\n\n\n<li>The Board Resolution, along with a copy of the\nMoA and the AoA<\/li>\n\n\n\n<li>A copy of the Partnership Deed, in case the applicant is a <a href=\"https:\/\/corpbiz.io\/partnership-firm-registration\" title=\"Partnership Firm Registration\n\"><strong>Partnership Firm<\/strong><\/a><\/li>\n\n\n\n<li>The details of the applicant company\u2019s Bank\nAccount<\/li>\n\n\n\n<li>The set expected date for the commencement of\nbusiness<\/li>\n\n\n\n<li>Payment Receipts <\/li>\n\n\n\n<li>A copy of the Land Deed<\/li>\n\n\n\n<li>No-Objection Certificate from the <a href=\"https:\/\/corpbiz.io\/fire-department-noc-in-india\" title=\"Fire Department NOC\"><strong>Fire Department<\/strong><\/a><\/li>\n\n\n\n<li>Consent Letter from the Pollution Department and\napplicable authorities<\/li>\n\n\n\n<li>Details of all the equipment to be utilised in\nthe factory<\/li>\n\n\n\n<li>Details of the Hazardous and Non-Hazardous to be\nemitted by the factory<\/li>\n\n\n\n<li>Details of the Raw Materials to be utilised for\nproduction products along with the product processing flow chart<\/li>\n\n\n\n<li>The Tax Receipt<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_Process_of_Factory_License_Certificate\"><\/span>Registration Process of Factory License\nCertificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following steps below are the registration procedure for\nthe issuance of the Factory License Certificate \u2013<\/p>\n\n\n\n<ul>\n<li>The applicant is required to submit a duly\nfilled Form 2 along with self\u2013attesting all the above\u2013mentioned necessary\ndocuments and the required fees.<\/li>\n\n\n\n<li>Upon submission of the required documents, they\nare to be evaluated by the authorised personnel.<\/li>\n\n\n\n<li>If there are any errors or faults found in the\ndocuments, the applicant is immediately reverted for rectifying the applicable\ndocuments and re\u2013submit within the specified time duration as notified by the\nauthorised personnel<\/li>\n\n\n\n<li>A physical inspection is also conducted by the\nauthorised personnel of the factory premises for verification purposes<\/li>\n\n\n\n<li>After the approval of the documents, the\napproval is granted for the processing of the Certification to be issued to the\napplicant<\/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>The labourers employed by the factory establishment are often hired for manual labour in a tedious and hazardous work environment and are at a higher risk of exploitation by being overworked and underpaid. The Factory License Certificate ensures that the rights of the labourers are protected and are treated with equality.<\/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\/complete-checklist-for-factory-license-registration-in-india\/\">Complete Checklist for factory license Registration in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Factories Act, 1948 has mandated that all factory owners need to register their factory area with the applicable local authorities prior to commencement of any business. The Factory License is to act as an Approval Document that is issued by the respective authorities for carrying out operations in relation to the production of products. [&hellip;]<\/p>\n","protected":false},"author":37,"featured_media":44850,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[484],"tags":[2457],"acf":{"service_id":"387"},"authorName":"Sushree Dash","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/05\/MicrosoftTeams-image-9.jpg","authorDescription":"Sushree Dash has completed BBA-LLB with a specialization in IPR Laws from KIIT University. As a recent graduate, she has both legal and management internship experience in international law firms, Indian law firms and under Indian litigation. She secures good drafting skills for various legal documents in multiple fields of law. She has also published multiple research papers in reputed UGC approved international journals.","postViews":6565,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/44849"}],"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\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=44849"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/44849\/revisions"}],"predecessor-version":[{"id":67827,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/44849\/revisions\/67827"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/44850"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=44849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=44849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=44849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}