A Brief of Factory License Renewal
The manufacturing industry has seen incredible growth in India over the past years. After the Factory's Act of 1948, the registration of factory sites was made mandatory with the competent department before starting any business. Getting a license is a kind of approval from the capable department of Factories & Boilers. According to the provision of this Act, certification & Renewal of factory licenses are done to ensure the safety & security of all labours.
The classification of the factory has been done according to Factory Act 1948; the License is required if the factory is involved in producing hazardous & Non-hazardous products and has a minimum of 10 workers & consumer power or a minimum of 20 labours and does not have to consume power. There are several advantages to getting a factory license. Like it will help in fighting any legal battle in case of any violation, a factory operating according to all norms & conditions enhances the productivity of employees, regulate various matters like working hours, payments/ wages, holidays, leaves, hiring, enlistments of women, termination of work, etc.
The Essential Documents for the Factory License Renewal
Following is the list of documents you will require for registering the factory license renewal:-
- First, the must be filled & signed the application for Form-2.
- Fees are calculated as per the charge structure specified.
- One of the directors/ partners is nominated to function as the occupier by the board of directors/ partners resolution.
- Every factory with a minimum of 50 employees needs to follow a health & safety policy.
- Authenticated copy of a recognised department’s stability license is issued.
Procedure for the Factory License Renewal
The manufacturer must apply for a Renewal of Factory License if the License has expired. They should make an Application for Renewal to the directorate 30 days before the License expires. Following is the process of Renewal:-
Step 1: A fully completed “Form-2” must be provided during the renewal process.
Step 2: The designated department will examine this application.
Step 3: The approval process will commence if all of the documents & details are in order after the inspection.
Step 4: At this point, if any corrections are needed, they will be made.
Step 5: Will then send the application to the appropriate departments for approval & all essential revisions and documents.
Step 6: The owner will subsequently receive a copy of the renewed License that the relevant government official has attested.
Step 7: A copy of the original factory license, along with the payment of fees & Form-2, should be supplied for the renewal process.
Validity of Factory License
According to the Factory Act, Factory License is valid for one year from the registration date. So every year, consumers have to renew their factory licenses. If the License expires, its Renewal is a compulsory requirement; the factory license takes a maximum of 60 days.
Note: If the application for factory license renewal is not submitted on time, a late fee is charged, 25% of the requisite price.
How will SWARIT Advisors help you?
The application procedure & preparation of documents could leave any applicant confused and stuck. Our skilled professionals can help you mitigate those circumstances by rendering unmatched support. Swarit Advisors are pivotal in assisting in license approval & Renewal of License by providing end-to-end support to our clients pan India.
Frequently Asked Questions
Must apply for the licence renewal to the Directorate of Industrial Safety & Health, Labour Department, and Government.
If an application, complete in all respects along with the prescribed fee, has been submitted to the Directorate of Industrial Safety & Health, the Deputy Director (ISH) renews a licence. After that, the same is returned to the concerned factory, along with a forwarding letter under registered & speed post.
Only information about the manager (if any) can be allowed to be entered.
An application for Renewal of licence finalise in all respects is required to be made in advance and delivered to the Directorate of Industrial Safety & Health at least thirty days before the expiry of the licence, which is December 31st of the calendar year up to which the licence has been granted or renewed and applied for Renewal. It implies that the application must reach the office until November 30th of the calendar year, when the licence expires.
Factory means any premises wherein 20 or bove workers are working to carry out a manufacturing process with the help of powers OR whereon 40 or above workers are working to carry out a manufacturing process without the help of management. The Act applies to power looms, sawmills, specific industries which use hazardous chemicals, and certain procedures carried out using flammable solvents by publishing a notification, even if the number of workers is less than 10.