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.
According to section 2(m) "factory" means any premises including the precincts thereof-
(i) whereon ten or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
(ii) whereon twenty or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, - but does not include a mine subject to the operation of the Mines Act, 1952 (XXXV of 1952) or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place;
As per factory act 1948, any factory needs to obtain a factory license if:
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.
Section 6 of the Factories Act authorizes the Government of the State to control the licensing and registration rules of factories under the Act on the following matters:
➲ Submission of plan
The state government can lay down rules for submitting plans or representing manufacturing facilities. The association includes the State government or Chief Reviewer's prior consent to the construction or expansion of any industrial facility.
➲ Notice by occupier
➲ Application for factory license
Application for approval need to be submitted in the prescribed form (form-1), accompanied with required documents
➲ Payment of fee
After applying for the application submit the application fees for the license.
➲ Verification and inspection
In the event that the application and proposals are in accordance with the legislative requirements of the Factories Act, 1948 and Factories Rules, 1950, the factory plan shall be approved by the Factories Director after review of the recommendations of the Deputy Factories Director concerned
➲ Grant of license:
After inspection, if the department feels that all the documents and provisions of the factory act comply then department will issue/grant the factory license.
➲ Authorized person photograph
➲ Authorized person id and address proof (PAN and Adhar)
➲ Address proof of located factory (electricity bill/ rent agreement)
➲ Pollution department consent letter
➲ Business registration certificate
➲ NOC from the fire department
➲ PAN copy of business
➲ Factory layout
If any person violates the rule made under factories act 1948 then he will be penalties as per the act. Following penalties can be imposed
➲ Imprisonment for a term which may extend to one year, or,
➲ Fine which may extend to one lakhs, or
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