Factory License Online in India

What is Factory License?

Factory owners were required to officially register their facilities with local authorities prior to the enforcement of the Factories Act, 1948. The local authorities granted permission to operate their factories and conduct production activities. The Factories Act of 1948 states that specific factories meeting the Act’s criteria must register and acquire a factory license to guarantee workers’ safety. The factory license can be renewed by the factory owners when it expires, by submitting an application to the relevant state labour department or department of factories.

A Factory License Registration is necessary when the number of employees reaches 10/20 in a site where at least 20 individuals are working or have worked, on any day in the past year, and where manufacturing activities are taking place. This rule is relevant to all industries in which manufacturing activities are conducted using electricity or are commonly conducted, and where there are ten or more employees currently or in the past year.

Ensuring the well-being of workers by establishing guidelines regarding cleanliness, waste and effluent disposal, ventilation and temperature control, dust and fumes management, adequate lighting, access to drinking water, and restroom facilities. To protect employees working with hazardous and non-hazardous plants and machinery, guidelines on fire safety, building maintenance, and precautions for dangerous gases, heavy loads, as well as the use of lifting machines, chains, and ropes are provided.

To offer comprehensive regulations and standards for factories that work with dangerous substances and procedures. To support the well-being of workers by offering amenities such as washing and drying facilities, first-aid, canteens, shelters, and restrooms. To prevent being taken advantage of, guidelines are established for factors such as work schedules, shifts, time off, breaks, and the hiring of female employees. To establish rules and steps for utilizing minors in the production process. To levy sanctions on any production facility that violates the guidelines outlined in the Factories Act 1948.

Documents Required

• Proof of identification and address of the owner
• Documentation showing the address of the factory site, like a lease agreement or utility bill
• Letter of permission from the Department of Pollution.
• Permission from the fire and water department
• Copy of PAN card for business use
• Design of factory layout and construction blueprint
• Directors’ roster
• Resolution of the board or agreement between partners
• Details regarding equipment and materials.
• Details regarding dangerous and non-dangerous waste materials
• Proof of tax payment (if applicable)

Benefits of Factory License

Depending on the scheme selected, the factory owner could qualify for legal benefits offered by the government. Women and employees who are in their youth are taken care of in terms of their pay, well-being, job environment, and work hours.

Taking care of holidays, leaves, hours, wages, women and children employment, hiring, firing, and other factors is ensured when obtaining a factory license. Adhering to the guidelines of the Factories Act 1948 also improves workers’ productivity. The license guarantees that all employees within the organization receive fair and equal rights and treatment.

A factory license is an authorization from the local government for the operation of the factory’s business. Applying for and acquiring additional licenses will be beneficial. 

Factory owners are required to acquire this license, or they could potentially be forced to close the factory. It also shields owners from the penalties specified in the Factories Act. 

It makes sure owners implement proper safety precautions to safeguard the well-being and health of their employees. Factory owners can receive government benefits through various programs once they acquire a factory license.

State Government approval is required for manufacturing within the State as a general rule.
In-depth instructions based on the Factories Act 1948 regarding the management of both hazardous and non-hazardous materials and equipment to guarantee the safety and protection of the business establishment.

Encourages women to take part in manufacturing activities to promote equality.
Facilitates accessing different government programs. Ensures the well-being and security of employees while also motivating them to enhance their contributions to the company’s development.

Procedure For Factory License

STEP 1: The proposed factory plan, including operations, location, and boundaries, must be submitted according to state government regulations for establishing factories. Approval from the State Government or Chief Reviewer is required for setting up the factory in compliance with the rules and regulations. The factory must also include safety, health, and welfare measures taken for its employees.

STEP 2: The owner must provide the following details. The owner must specify the type of manufacturing process. Total workforce in the factory. Location of the factory where it will be situated. Factory manager’s name. Information about the equipment used in the factory.

STEP 3: Submission of the approval application necessitates the use of Form -1 and all required signed documents in accordance with established rules and regulations.

STEP 4: Paying the license fees is required after the applicant’s License Application is approved. Approval can be obtained in accordance with the rules and regulations of the license.

STEP 5: If the application and proposals adhere to the guidelines outlined in the Factories Act, 1948 and Factories Rules, 1950. The factory plan must be confirmed by the Factories Director following the examination of the Deputy Factories Director’s suggestions.

STEP 6: Once the fees are paid and the inspection department verifies that all documents and application forms adhere to the required rules, the Department will issue the license.

Facts To Know

As per the Factory Act of 1948, all factory owners are required to obtain official registration from the local government prior to commencing operations. A Factory License is a paper that authorizes the holder to participate in manufacturing operations.

The building plan of a plant must be approved by the labor and employment department in order to register a factory as per the Factories Act of 1948. To guarantee the workforce’s safety, this Act also requires the registration and renewal of industrial licenses. In this article, we will discuss factory permits in India.

How StartupsFiling helps you in the Registration process?

StartupsFiling has been one stop solution for the SSI registration for the varied ranges of benefits such as:

• Pool of Experts: StartupsFiling holds a large pool of Experts from all over the world specializing in SSI registration services.  Our team of experts makes sure that your work is taken care of in the most effective manner possible.
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• Process Alteration: For the fact that we focus on a Client-centric approach, we keep our process structurization open for the client to alter it as per their need, requirements, and vision.  For us, obtaining the best results is the focus, along with the Client satisfaction.
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