{"id":6705,"date":"2020-04-14T10:59:04","date_gmt":"2020-04-14T05:29:04","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=6705"},"modified":"2024-12-12T18:51:14","modified_gmt":"2024-12-12T13:21:14","slug":"registration-and-licensing-of-factories-under-factories-act-1948","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/registration-and-licensing-of-factories-under-factories-act-1948\/","title":{"rendered":"Registration and Licensing of Factories under Factories Act, 1948"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Over the years, manufacturing has emerged as one of the high growth sectors in India. Introduction of schemes like &#8220;<strong>Make in India&#8221;<\/strong> has given an adequate boost to the sector to a level that India is expected to become the fifth largest manufacturing country in the world by the end of the year 2020. The manufacturing sector in India has evolved from its earlier stages of industrialization to its current phase of global competitiveness, making it a great location for newer, smaller businesses to manufacture. <br><br>To set up a factory in India, you need to apply for licenses from the centre and state government. Factory Registration in our country is regulated by the provisions of the Factories Act 1948. Factories Act regulates the working condition in factories and deals with various problems concerning the health, safety, efficiency, and well being of the persons at workplaces. This blog will provide you with an insight into the procedure involved in Factory Registration in India. <\/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\/registration-and-licensing-of-factories-under-factories-act-1948\/#Applicability_of_Factories_Act_1948\" >Applicability of Factories Act, 1948<\/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\/registration-and-licensing-of-factories-under-factories-act-1948\/#Definition_of_factory_as_per_Factories_Act_1948\" >Definition of factory as per Factories 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\/registration-and-licensing-of-factories-under-factories-act-1948\/#Objectives_of_Factories_Act_1948\" >Objectives of Factories 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\/registration-and-licensing-of-factories-under-factories-act-1948\/#The_procedure_of_registering_a_factory_in_India\" >The procedure of registering a factory in India<\/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\/registration-and-licensing-of-factories-under-factories-act-1948\/#Documents_Required_for_Factory_Registration\" >Documents Required for Factory Registration<\/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\/registration-and-licensing-of-factories-under-factories-act-1948\/#Procedure_for_renewal_of_factory_license\" >Procedure for renewal of factory license<\/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\/registration-and-licensing-of-factories-under-factories-act-1948\/#Documents_required_for_renewal_of_factory_license\" >Documents required for renewal of factory\nlicense<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/registration-and-licensing-of-factories-under-factories-act-1948\/#Compliance_Checklist_under_the_Factories_Act\" >Compliance\nChecklist under the Factories Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/registration-and-licensing-of-factories-under-factories-act-1948\/#Penalties_under_Factories_Act_1948\" >Penalties under Factories Act, 1948<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/registration-and-licensing-of-factories-under-factories-act-1948\/#Take_Away\" >Take Away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_Factories_Act_1948\"><\/span>Applicability of Factories Act, 1948<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nFactories Act 1948 is applicable throughout the country, including Jammu &amp;\nKashmir, and covers all manufacturing processes and establishments falling\nwithin the definition of &#8220;factory&#8221; as defined u\/s 2(m) of the Act.\nThe Act is also applicable to factories belonging to the Centre\/State\nGovernment (section 116).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_factory_as_per_Factories_Act_1948\"><\/span>Definition of factory as per Factories Act, 1948<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under\nthe Factories Act, &#8220;<em>factory<\/em>&#8221;\nmeans any premises:<\/p>\n\n\n\n<ul>\n<li>Where ten or more than ten workers are\nworking or were working on any day of the preceding twelve months, and in any\npart of which a manufacturing power is being carried on with the aid of power,\nor is ordinarily so carried on, or<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Where twenty or more than twenty workers\nare working or were working on any day of the preceding twelve months, and in\nany part of which a manufacturing process is being carried on without the aid\nof power, or is ordinarily so carried on.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_Factories_Act_1948\"><\/span>Objectives of Factories Act, 1948<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The Factories Act was incorporated in\nthe year 1948 with objectives of regulating the working conditions in\nfactories, regulating health, safety, welfare, and annual leave of factory\nworkers to ensure adequate safety measures of workers employed in factories. <\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Moreover, the Act also makes provisions\nregarding the employment of women and young persons, annual leave with wages,\netc.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_procedure_of_registering_a_factory_in_India\"><\/span>The procedure of registering a factory in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\nis obligatory for every factory in India to abide by the rules and guidelines\nstated in the Factories Act, 1948. The first step towards establishing a\nfactory in India is the registration of the factory, and once the registration\nis done, the licenses can be availed from the government. Following is the\nprocedure to be followed for factory registration in India:<\/p>\n\n\n\n<ul>\n<li>An applicant has to apply with duly\nfilled in Form No-2, a set of prescribed documents and fees prescribed in the\nproper head of Account in the shape of Treasury Chalan in the office of\nDirector of Factories &amp; Boilers, of his state.<\/li>\n\n\n\n<li>Upon receiving the application, the same\nis scrutinized by the concerned officer.<\/li>\n\n\n\n<li>Post scrutiny, if the documents are found correct, it is processed for approval by the competent Authority.<\/li>\n\n\n\n<li>In case shortcomings are observed then,\nthe applicant is asked to submit the corrected application in a time-bound\nmanner.<\/li>\n\n\n\n<li>Once authorities receive the corrected\nfrom the applicant, the application is processed in file to get approval from\nthe Competent Authority.<\/li>\n\n\n\n<li>After approval is given, a registration\ncertificate and a license duly signed by the Competent Authority are sent by\npost to the applicant with a covering letter.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Factory_Registration\"><\/span>Documents Required for Factory Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the list of documents needed for Factory Registration:<\/p>\n\n\n\n<ul>\n<li>Form No-2 or Combined application form for establishment of industries in form 1AA.<\/li>\n\n\n\n<li>Construction completion report from management as per the approved plan. <\/li>\n\n\n\n<li>Requisite Fee in shape of treasury Chalan in proper Head of Account as per fee structure notified in from time to time. <\/li>\n\n\n\n<li>Resolution of Director\/partners nominating one to act as occupier under section 2(n) of Factories Act.<\/li>\n\n\n\n<li>Original copy of Stability Certificate issued by a recognized competent person. <\/li>\n\n\n\n<li>Safety &amp; Health Policy for 2(CB) and MAH category factories and other factories are employing 50 or more workers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_renewal_of_factory_license\"><\/span>Procedure for renewal of factory license<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>An applicant has to apply with duly\nfilled in Form No-2 and fee prescribed in the proper head of Account in the\nshape of Treasury Chalan in the office of Director of Factories &amp; Boilers,\nof his state. <\/li>\n\n\n\n<li>Upon receiving the application, the same\nis scrutinized by the concerned officer. <\/li>\n\n\n\n<li>After inspecting the application, if the\ndocuments are found correct the application, it is processed for approval by\nthe competent Authority. <\/li>\n\n\n\n<li>If there are any corrections to be made,\nthe applicant is asked to submit the corrected application in a time-bound\nmanner. <\/li>\n\n\n\n<li>Once authorities receive the corrected\ndocuments from the applicant, the application is processed in a file for\napproval of the Competent Authority. <\/li>\n\n\n\n<li>After approval, the renewed copy of\nlicense duly signed by the Competent Authority is sent by post to the applicant\nwith a covering letter.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_renewal_of_factory_license\"><\/span>Documents required for renewal of factory\nlicense<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Form No-2 or Combined application form for establishment of industries in form 1AA. <\/li>\n\n\n\n<li>Requisite Fee in shape of treasury Chalan in proper Head of Account as per fee structure notified from time to time. <\/li>\n\n\n\n<li>Copy of Original <a href=\"https:\/\/corpbiz.io\/factory-license\" title=\"Factory License\"><strong><em>Factory License<\/em><\/strong><\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compliance_Checklist_under_the_Factories_Act\"><\/span>Compliance\nChecklist under the Factories Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Licensing\nof Factory<\/h3>\n\n\n\n<p>The owner of the\nfactory has to take prior permission from the State Government or the Chief\nInspector in writing for the site on which factory is to be situated.<\/p>\n\n\n\n<p>Further to get a\nlicense, the occupier must send the notice under section 7 of the Act to the\nChief Inspector, at least 15 days before he begins to use the premise as a factory\ncontaining the following details:<\/p>\n\n\n\n<ul>\n<li>Name and address of the Occupier.<\/li>\n\n\n\n<li>Name and address of the factory.<\/li>\n\n\n\n<li>Type of the manufacturing process to be\ncarried out in the factory.<\/li>\n\n\n\n<li>Name of the manager of the factory.<\/li>\n\n\n\n<li>Number of workers likely to be employed.<\/li>\n\n\n\n<li>Other prescribed particulars.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Working\nHours of Adults<\/h3>\n\n\n\n<p>According to the <strong><em>Factories Act, 1948<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Factories_Act,_1948_(India)\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>, the employees working in the factories would gain the benefit of the following regulations:<\/p>\n\n\n\n<ul>\n<li>No worker should be given permission to\nwork in a factory for more than 48 hours a week.<\/li>\n\n\n\n<li>No worker should be made to work\ncontinuously for 10 days without any holiday.<\/li>\n\n\n\n<li>In case the worker is deprived of any of\nweekly holidays, he should be allowed to take that holiday in that month or\nwithin the two months immediately following that month.<\/li>\n\n\n\n<li>No adult worker should be working in a\nday for more than 9 hours.<\/li>\n\n\n\n<li>The working hours of an adult worker in\na factory must be arranged in a way that he doesn&#8217;t work for more than 5 hours\nwithout taking a break of at least half an hour.<\/li>\n\n\n\n<li>If a worker works on night shift, the\nhours he has worked for after the midnight should be counted in the previous\nday.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Safety Provisions under Factories Act, 1948<\/h3>\n\n\n\n<ul>\n<li>Fencing of machinery.<\/li>\n\n\n\n<li>Work on near machinery in motion.<\/li>\n\n\n\n<li>Employment prohibition of women and children\non dangerous machines.<\/li>\n\n\n\n<li>Protection of eyes.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Welfare measures under Factories Act<\/h3>\n\n\n\n<ul>\n<li>Washing facilities<\/li>\n\n\n\n<li>Facilities for storing and drying\nclothing.<\/li>\n\n\n\n<li>Facilities for sitting.<\/li>\n\n\n\n<li>First aid appliances.<\/li>\n\n\n\n<li>Canteens if the factory has more than\n250 workers employed.<\/li>\n\n\n\n<li>Shelters, restrooms, and lunchrooms if\nthe company has more than 150 workers.<\/li>\n\n\n\n<li>Cr\u00e8ches in case there are 30 or more\nwomen workers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_under_Factories_Act_1948\"><\/span>Penalties under Factories Act, 1948<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Offence<\/strong>\n  <\/td><td>\n  <strong>Penalties<\/strong>\n  <\/td><\/tr><tr><td>\n  Violation\n  of the provisions of the Act\n  <\/td><td>\n  Imprisonment\n  for 2 years or fine up to Rs 1,00,000 or both\n  <\/td><\/tr><tr><td>\n  Continuation\n  of violation\n  <\/td><td>\n  Rs\n  1000 per day\n  <\/td><\/tr><tr><td>\n  Violation\n  of Chapter IV pertaining to safety or dangerous operations\n  <\/td><td>\n  Not\n  less than Rs 25,000 in case of death\n  Not\n  less than Rs 5000 in case of serious injuries\n  <\/td><\/tr><tr><td>\n  Following\n  violation of some provisions\n  <\/td><td>\n  Imprisonment\n  up to 3 years or fine not less than Rs 10,000 which may extend to Rs 2,00,000\n  <\/td><\/tr><tr><td>\n  Obstructing\n  inspectors\n  <\/td><td>\n  Imprisonment\n  up to 6 months or fine up to Rs 10,000 or both\n  <\/td><\/tr><tr><td>\n  Wrongfully\n  disclosing result related to results of analysis\n  <\/td><td>\n  Imprisonment\n  up to 6 months or fine up to Rs 10,000&nbsp;\n  or both\n  <\/td><\/tr><tr><td>\n  Violation\n  of the provisions of Sec. 41B, 41C and 41H related to compulsory disclosure\n  of information by occupier, specific responsibility of occupier or right of\n  workers to work imminent danger\n  <\/td><td>\n  Imprisonment\n  up to 7 years with fine up to Rs 2, 00,000 and on continuation fine at Rs\n  5,000 per day.\n  Imprisonment\n  of 10 years when violation continues for one year.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span>Take Away<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In India, Factory\nRegistration is regulated by the provisions of the Factories Act 1948. The Act\nis managed by the Ministry of Labour and Employment. Factories Act also regulates\nthe working condition in factories and deals with various problems concerning\nthe health, safety, efficiency, and well being of the persons at workplaces. If\nyou wish to set up a factory in India, you will have to abide by the rules and\nguidelines stated in the Factories Act, 1948.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the years, manufacturing has emerged as one of the high growth sectors in India. Introduction of schemes like &#8220;Make in India&#8221; has given an adequate boost to the sector to a level that India is expected to become the fifth largest manufacturing country in the world by the end of the year 2020. The [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":6712,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[484,164],"tags":[485],"acf":{"service_id":"215"},"authorName":"Shubham Chauhan","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/shubham-chauhan.jpg","authorDescription":"A passionate legal content writer, a nature enthusiast, an avid reader, and a part-time thinker. By means of conducting in-depth research on industry related topics, Shubham often builds flawless and intelligible legal content for populace from all walks of life.","postViews":73873,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6705"}],"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\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=6705"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6705\/revisions"}],"predecessor-version":[{"id":67855,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6705\/revisions\/67855"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/6712"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=6705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=6705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=6705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}