Factory License
The Factories Act 1948 states that a factory must obtain approval from the labor and employment department for its building plan before it covers itself for factory registration.
What is the Factory Act 1948?
The Factory Act 1948 is a legislation introduced by the Indian government to protect the rights and well-being of workers in the manufacturing sector. It mandates that all factory owners register their premises with the local authorities before commencing operations. The Department of Factories and Boilers is responsible for issuing Factory Licenses and ensuring the safety and welfare of workers.
Pursuant to the 1948 Factory Act, it is compulsory for each factory owner to register their premises with local authorities before starting a business. Factory License acts as an approval document provided by authorities to carry out manufacturing activities.
The Factories Act 1948 states that a factory must obtain approval from the labor and employment department for its building plan before it covers itself for registration of a factory. Under this act, Factory license registration and renewal is also done to ensure the safety of workers.
Who Needs a Factory License?
As per the Factory Act, certain factories must obtain a Factory License. This includes:
Factories with 10 or more workers involved in manufacturing activities with the aid of power.
Factories with 20 or more workers involved in manufacturing activities without the aid of power.
Before starting construction, reconstruction of a factory, or in the event of factory expansion, the entrepreneur/applicant must apply for approval of the factory plan and obtain permission for construction.
Eligibility Criteria for Factory License
Eligibility Criteria for Factory License
To be eligible for a Factory License, the factory must fulfill the following criteria:
- The factory must meet the minimum worker requirements as stated in the Factory Act.
- The factory premises must adhere to the guidelines and safety measures specified by the Act.
- The factory owner must obtain the necessary building plan approval from the respective state labor department.
Prerequisites for Obtaining a Factory License
Understanding the Prerequisites
Before applying for a Factory License, certain prerequisites must be fulfilled. These include:
Factory Building/Premises: The factory premises must be suitable for carrying out manufacturing activities safely.
NOC from Fire, Water, and Pollution Boards: No Objection Certificates must be obtained from the fire, water, and pollution control boards to ensure compliance with safety and environmental regulations.
Factory Layout Plan: A detailed layout plan of the factory premises, including machinery placement and workflow, must be submitted.
Notice to Chief Inspector: The factory owner must send a legal notice to the chief inspector at least 15 days before commencing any activities or occupancy in the factory.
Documents Required For Factory License
To obtain a Factory License, the following documents need to be submitted along with the application:
- Owner ID and Address Proof: Valid identification and address proof of the factory owner.
- Address Proof of Factory Premises: Documents such as a rental agreement or electricity bill to establish the address of the factory premises.
- Pollution Department Consent Letter: Consent from the pollution control department, indicating compliance with environmental regulations.
- NOC from Fire and Water Department: No Objection Certificates from the fire and water departments, ensuring compliance with safety measures.
- Business PAN Card Copy: Copy of the PAN card of the business entity.
- Factory Layout and Building Plan: Detailed plans showcasing the layout and construction of the factory premises.
- List of Directors: Names and details of all the directors of the company.
- Board Resolution or Partnership Deed: Relevant legal documents indicating the authority of the factory owner.
- Particulars of Equipment and Raw Materials: Detailed information about the machinery and raw materials used in the manufacturing process.
- Particulars of Hazardous and Non-Hazardous Wastes: Information regarding the management and disposal of hazardous and non-hazardous wastes generated by the factory.
- Tax Receipts: Receipts of taxes paid, if applicable.
