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 of up to Ten Years. The occupier shall apply for the Chief Inspector of Concerned State Government. After validation of the Site plan and other documents, the chief inspector shall grant the factory license.

The Parliament of India introduced the Factories Act, 1948 on 23rd September 1948, which came into effect on 1st April 1949. The Act’s provisions empowered the State Governments to make their legislation regarding factories’ registration, approval and licensing.

The State Governments were to establish mechanisms by which a Government Authority was to set up an office consisting of Factory Inspectors and a Chief Factory Inspector. They would regulate the setting of new factories and compliance requirements of existing factories as per Sec 6 of the Factories Act (Approval, Licensing and Registration of Factories).

The General Duties of a Factory Owner according to the Factories Act, 1948

• The factory owner is to ensure the health, safety and welfare of all the workers when working on the factory premises.
• The occupier has to ensure the provisions and maintenance of the plant and machinery so that it is safe to operate without health risks.
• They have to make proper arrangements in the factory to ensure safety during the regular use, handling, storage & transport of articles and substances.
• He has to ensure that accurate information, instruction, training, and supervision are provided to the workers, which may be deemed necessary to ensure the health and safety of all workers.

Eligibility Criteria

• The factory or establishment holds ten or more workers employed with power for manufacturing activities.
• The factory or establishment holds twenty or more workers employed in using power for manufacturing activities.

Note: The factories are broadly separated into two sub-categories depending on the process of Hazardous & Non-hazardous.

Documents Required for Factory license for Site Plan Approval.

Following are the documents required for Factory License:-

• Form-1 (Particular of Room in The Factory)
• Copy of the factory building plan,
• Id and Address proof of the applicant
• Latest List of partners / Directors / Order of the Managing Agent appointed by Central Government/ State Government / Local Authority as an occupier.
• If there is a change of Directors, submit Form No. 32 of the Companies Act,
• 1956.
• Partnership deed / Memorandum of Articles of Association.
• Bank account details
• Expected Date of commencement of work,
• Payment receipts
• Land ownership document: Land ownership documents (Sale deed/Rent deed / Lease deed) with Land Use conversion document if applicable.
• Consent from all authorities
• Particulars of equipment
• Particulars of hazardous and non-hazardous wastes
• Flow chart of the manufacturing process.
• List of raw materials used in the manufacturing process.
• List of types of machinery installed on the premises.
• Such other will be as the Chief Inspector/Director (ISH) may require.
• Tax receipt.

Documents required for Factory License Renewal

A factory License is valid for up to one year, so you should renew it before its expiry. The license renewal process is the same as the registration process. Documents required for renewal of Factory license are:

• Form-4
• Form-4B
• Treasury of Online Challan

Note: If a default has been made in the renewal of the Factory license, a minimum of 10% of the license fee has been prescribed penalty, which shall increase by 10 % every month

 The procedure followed by the Authority in granting a license

All online applications are scrutinized, and in case of any defect, the same will be communicated to the applicant online, pointing out the defects. If the application is complete in all aspects, factory premises shall be Inspected to adjudge suitability for registration and grant of license. If the factory Conforms to the statutory requirements, will grant the license within a month.

Conclusion

In India, the provisions of the Factories Act 1948 regulate Factory Registration. The Ministry of Labour and Employment manages the Act^[1]. Factories Act also control the working condition in factories and deals with different problems concerning the health, safety, efficiency, and well-being of the persons at workplaces. If you wish to set up a factory in India, you must abide by the rules and guidelines stated in the Factories Act, 1948.