Factory License Registration is a mandatory registration required for businesses that operate a factory or manufacturing unit in India. Here's a step-by-step guide to help you understand the process. Factory owners had to compulsorily register their premises with local authorities before the factories act, 1948 came into face. The local authorities gave a license to run their factories and carry out manufacturing activities. The factories act, 1948 act provides that certain factories b that fulfil the conditions given in the act must register and obtain a factory license under the act to ensure the safety of the workers. The factory owners can renew the factory license upon it’s expire by applying to the respective state labour department or department of factories.
Factory license certificate-
The respective state department of labour will grant the factory license certificate. The factory license is valid for up to one to five years. The validity of the factory license certificate varies from state to state. The factory owner must apply for renewal of the factory license certificate before its expiry to carry on the manufacturing processes or operation of the factory
Eligibility Criteria:
- Number of Workers:The factory must employ at least 10 workers if it uses power for manufacturing purposes, or at least 20 workers if it does not use power.
- Manufacturing Process:The factory must be engaged in a manufacturing process, which includes activities like processing, assembling, or packaging.
- Power Usage:The factory must use power for manufacturing purposes, either directly or indirectly.
- Factory Premises: The factory must be located in a premises that is used exclusively for manufacturing purposes.
- Business Entity:The factory can be owned by any business entity, including:
- Sole Proprietorship, Partnership, Company (Private Limited, Public Limited, etc.), Cooperative Society. - Industry Type:The factory can belong to any industry, including:
- Manufacturing, Processing, Assembling, Packaging - Location: The factory must be located in an area designated for industrial use by the local authorities.
- Age of Factory:The factory must be operational for at least 6 months before applying for registration.
- Compliance with Laws:The factory must comply with all applicable laws and regulations,
including:
- Labor laws, Environmental laws, Safety regulations - Registration with Authorities:The factory must be registered with the relevant authorities,
including:
- Factory Inspector, Labor Department, Pollution Control Board
- FORM-1 (particular of room in the factory)
- Questionnaire to form-1
- Certificate of stability
- NOC of fire
- NOC of concerned state
- Process flow diagram
- NOC from local body/ local authority
- NOC from explosive department
- NOC from others
- Building drawing copy
- NOC from electrical safety
- Proof of ownership of factory building premises
- Notification of site
- Memorandum article
- List of directors
- Resolution for the declaration of occupier
- Safety report
- On-site emergency plan
- Health and safety police
- Photograph of establishment
- Identity proof
- Din or pan card
- Treasury challan/ Bank Name
- Inspection by joint team has minimum two inspectors, assistant labour commissioner, labour enforcement officer and assistant director factory as per the available
- An inspection report will be prepared by the department. Inspection team submit the report on the department portal along with a unique number. It is the duty of factories/establishment/units to manage the unique number and at the same the view and download the inspection report.
- In case of any non-compliance observed, department can issue notice to establishment/factories to rectify defects. Once the compliance reports is submitted by the labour department it is important for the establishment to perform the necessary compliance within 15 days and inform the labour department about the same.
Factory license registration:
The act of section 6 empowers the state governments to monitor and grant licenses & registrations under the factories act.
- PLAN SUBMISSION - The factory owners must submit the factory plan to the state labour department. This must be submitted before the expansion or construction of a factory.
- FILLING APPLICATION - A factory owner can file an application for the factory license online or offline with the state labour department or department of factories.
- PAYMENT OF FEES - The prescribed fees should be paid for obtaining the factory license after submission of the license application.
- GRANT OF FACTORY LICENSE - After payment of fees and inspection of the application and document by the respective authority.
Registration Process:
- Submit the application form and required documents to the Factory Inspector of your area.
- Pay the prescribed registration fee.
- The Factory Inspector will inspect your factory premises and verify the documents.
- If everything is in order, the Factory Inspector will issue a Factory License.
- The license is valid for a period of 1 year and needs to be renewed annually.
Renewal Process:
- Submit the renewal application form (Form No. 2A) along with the required documents.
- Pay the prescribed renewal fee.
- The Factory Inspector will verify the documents and inspect the factory premises.
- If everything is in order, the Factory Inspector will issue a renewed Factory License.
Document required for renewal:
- Form-4
- Form-48
- Treasury or online challan
- What is factory registration?
Factory registration is a mandatory registration required for businesses that operate a factory or manufacturing unit in India. - Who needs to register their factory?
- Businesses with 10 or more workers and using power for manufacturing purposes, or 20 or more workers and not using power for manufacturing purposes. - What documents are required for factory registration?
- Application form, factory layout plan, list of directors/partners/proprietor, Memorandum of Association, Articles of Association, partnership deed, proprietorship declaration, identity proof, address proof, and NOC from State Pollution Control Board (if applicable). - How do I register my factory?
- Submit the application form and required documents to the Factory Inspector, pay the registration fee, and undergo an inspection of your factory premises. - What is the validity of the factory license?
- The factory license is valid for 1 year and needs to be renewed annually. - What is the penalty for non-compliance?
- Failure to register or renew the factory license can result in penalties, fines, and imprisonment. - Can I register my factory online?
- Yes, some states offer online factory registration facilities. - What is the difference between factory registration and MSME registration?
- Factory registration is mandatory for factories, while MSME registration is voluntary for small and medium-sized enterprises. - Do I need to register my factory if I have less than 10 workers?
- No, but you may still need to comply with other labor laws and regulations. - Can I register multiple factories under one license?
- No, each factory needs a separate registration and license
