A Complete Checklist for Factory License Registration in India

Checklist for Factory License
| Updated: Jun 17, 2022 | Category: Factory Licence

To ensure adequate safety measures, promote the health and welfare of the workers employed in factories, and prevent haphazard growth of factories, it is mandatory as per the provision for all the factory owners to register their premises with the local governing authority before the starting the factory. In this blog, we will discuss the complete checklist for Factory License registration that will help you register your factory.

Overview of Factory License Registration

The procedure and checklist for Factory License registration are given under section 6 of the Factories Act, 1948[1] are as follows:

  1. The details of factories or business plans of any class must be submitted to the chief inspector or the state government.
  2. The Renewal or expansion of any plant or machinery within specified limits will not be charged in addition to the extension of the factory if it involves safe working space and environmental conditions.

Eligibility Checklist for Factory License Registration

The government of India mandates the below-mentioned types of factories to adhere to the Factory Act 1948.

  • Establishments with a minimum of 10 workers and consumer power factories dealing with Hazardous products;
  • Factories dealing with Non-Hazardous products;
  • The establishment with a minimum of 20 workers with no power consumption;

Documents Checklist for Factory License Registration

Below mentioned is the document checklist for Factory License registration-

  • Photograph of Authorized person
  • Id and address proof of an Authorized person 
  • Address proof (electricity bill/ rent agreement) of located factory 
  • Consent letter from Pollution department 
  • Certificate of Business registration/incorporation
  • NOC from the fire department
  • PAN copy of business
  • The layout of the factory
  • Form No. 2 is filled and duly signed
  • Prescribed Fees as the 
  • Details of the resolution passed by the Director or partner nominating one of them to act as the occupier
  • Health and safety policy for all factories having a minimum of 50 workers
  • Attested copy of the stability certificate issued by a recognized authority.

Process Checklist for Factory License Registration

  • The Factories Act 1948 makes it mandatory for establishments to do manufacturing activities only after getting a factory license. Manufacturing without it is punishable by law.
  • Every state follows different procedures to grant factory licenses. Though the Factories Act 1948 applies to every state in India, the checklist of documents and the respective authorities vary from state to state.
  • The owner can either meet the authority personally and fill out the form or apply for the license online.

Online Procedure Checklist for Factory License Registration

The Checklist of Factory licensing registration websites varies from state to state. Visit the state website where the owner wants to establish the factory.

  • Create a User profile on the website.
  • Enter the requisite details and correct information about the service you wish to provide.
  • Add a unit and tap on the option required for Factory License registration. The options include-Permissions/NOC’s/License. After that, one can select the facility.
  • Fill out the requisite application form completely and accurately.
  • Upload all the documents mentioned in the checklist for the factory license registration on the portal in the required format.
  • Recheck the details, sign the form and upload the application.
  • Pay the registration and license fees online. 

Note-Once a payment is done, the refund will not be made.

  • Once the application is made, the authorities inspect the application. In case of no discrepancies, the application will go ahead for approval.

Also, the factory’s owner will be required to take a permit well in advance from the State authority as to where the factory will be located. To be able to occupy the factory place, the owner will also need to send a legal notice to the Chief Inspector under Section 7 of the Factories Act,1948, a minimum of 15 days before any occupancy can be achieved there. The following details would be needed as the information checklist for Factory License Registration:

  • Name and address of the occupier
  • Name of the manager that will manage the business
  • Details of Number of employees 
  • Type of manufacturing process which shall be accomplished at the said factory
  • Any other information which requires close monitoring

Inspection Checklist for Factory License Registration

Below mentioned steps are involved in the factory site inspection and Identification of Factory premises.

The factory premise to be inspected will be identified using the random computerized risk assessment.

The Joint Team will inspect the Premise. The joint team will consist of a minimum of two inspectors and one of the respective authorities’ like-

  • Assistant Labour Commissioner, 
  • Labour Enforcement Officer, 
  • Assistant Director Factory as per their availability.

Once the inspection is done, the inspection report will be submitted by the inspecting team on the departmental portal with a unique number.

  • The establishments will manage the unique number to view and download the inspection report within 48 hours from their web portal account.

In case of Non-compliance, the department may grant notice to establishments to rectify non-compliance observed as part of the inspection.

The establishment to do the appropriate compliance within 15 days and inform the Labour Department about the same after uploading the compliance report.

Post Registration Checklist for Factory License Registration

As per the Factories Act, 1948, adult workers employed in the factories would gain the benefit of the following regulations:

  • Not more than 48 hours of weekly work.
  • Not more than 9 hours of daily work.
  • In addition to compensatory holidays, one weekly holiday or substitute holiday. 
  • Break intervals for at least half an hour in a day.
  • The workers should not be forced to work for more than two continuous shifts.
  • For overtime shifts, Extra wages should be paid in which the rate of wages should be twice the ordinary rate for overtime work.
  • Provision of the notice period.

In the case of Women and Children, the following regulations must be followed in factories-

  • The shift for children should be between 6 am to 7 pm.
  • The shift timings for female employees should be between 10 am and 5 pm.

However, the timing for women employees varies from state to state. It can be between 8 am to 7 pm.

Highlights-To help women workers in Uttar Pradesh Factories, the state government has laid down provisions making it mandatory for employers to provide aid to women who want to work in night shifts. The employers are asked to provide facilities like free transport and food besides washrooms and restrooms.

Also, as per the notification issued by the government, no employer can dismiss the women employee if they refuse to work in night shift after 7 pm. No woman worker shall be forced to work after 7 pm without written consent. The employer will have to intimate the inspector of factories of the state concerned about the facilities and arrangements provided by him regarding the female worker employed in the factory.

Conclusion

Conclusively, we can say that the manufacturing sector has seen a steady boom in its growth throughout the nation. Various schemes launched by the Prime Minister, such as ‘Make in India,’ have given added access to the manufacturing industry, which is now expected to be the 5th largest manufacturing country worldwide. To protect the workers and ensure that factory owners are giving them a healthy and sound work environment, the Indian government mandates that all factory owners should have their establishments registered with the respective authorities by following the document checklist for Factory License Registration.

Spread the love

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.

 

Related Articles

MCD Factory License
| Date: Jul 05, 2022 | Category: Factory Licence

MCD Factory License: An Overview

Factory Act 1948 came into force in the year 1940. Since then, it has served as India's sole regulatory framework for production facilities. It mandates production-related facilities to be registered...

Read More
Masala Factory in India
| Date: Jun 08, 2022 | Category: Factory Licence

How to Start Masala Factory in India?

India is also known as "The Land of Spices," and the splendours of Indian Masala (spices) are well-known throughout the globe. India holds a prominent position in the international trade...

Read More
Documents Required for Factory License
| Date: Jun 30, 2022 | Category: Factory Licence

What are the Documents Required for Factory License?

According to section 6 of the Factories act 1948, the employer has to obtain a license to run the factory and renew it for one year or any further period...

Read More

ARTICLES

Hi! My name is Akanksha! Let's talk.