Under the Factories Act, of 1948 (Act), factory owners should register their premises with local authorities before they start production. The license to operate the factory is issued by the local authority to ensure adherence to the safety norms for workers in the factory.
Factory owners can file for the renewal of their license to operate their factory through the state labor department or department of factories concerned in case the license granted initially lapses.
A Factory License is needed for the owner of a factory to ensure their business does not violate any kind of statutory regulations and runs as smoothly as it can. Given below are reasons why a factory license is significant:
A factory license ensures that the factory operates according to safety standards and labor laws given by the government. It helps the owner of a factory get operations aligned with the legal framework so that workers' safety and well-being are ensured.
Factory license is a mandatory legal requirement under the Factories Act, of 1948. In case the license does not exist, factory operations cannot be carried out legally and, therefore, are liable for penalties and fines, or even closure in extreme cases.
With a factory license, the factory owner is legally bound to implement measures for workers' health and safety. This includes proper working conditions, safe machinery, and health protocols, which would promote a safer work environment for everyone.
A valid factory license gives people confidence, either as employees or investors, a client, and regulatory authorities about the credibility of the factory itself. It thus shows a concern for legal standards and ethical behaviors, which goes a long way in helping win long-term businesses.
In summary, a factory license is not just a legal necessity but a vital tool that helps ensure the safety of workers, maintain regulatory compliance, and boost the reputation of the factory in the market.
According to the Act, the following factories must obtain a factory license:
Factories with 10 or more workers involved in manufacturing activity with the aid of power.
Factories with 20 or more workers involved in manufacturing activity without the aid of power.
To apply for a factory license, certain requirements must be met, including:
The factory must have an appropriate structure for operations.
Obtain from fire, water, and pollution control authorities.
A layout plan must be submitted for approval.
A legal notice must be sent 15 days before starting any factory operations, containing detailed information like the occupier’s name, factory location, manager details, the number of workers, manufacturing processes, and installed horsepower.
As per Section 6 of the Factories Act, the process for obtaining a factory license involves:
Before expanding or constructing a factory, the owner must submit a factory layout plan to the state’s labor department for approval.
The application can be submitted online or offline, along with the necessary documents.
Pay the prescribed fees as part of the factory license application.
Upon approval and after the required inspection, the factory license will be granted by the respective authority.
The process for applying for a factory license online may vary from state to state. Generally, follow these steps:
Visit the relevant state labor department or factory department website.
Under the "Services" section, select “Factory Registration.”
Create an account and log in (if required).
Complete the application form, upload all documents, and submit.
Pay the prescribed application fees.
The department inspects the documents and issues the factory license.
Once granted, the factory license is typically valid for one to five years, depending on the state. To continue operations, factory owners must apply for Factory License Renewal before the expiry date.
To apply for a factory license, the following documents are generally required:
Owner ID and address proof
Address proof of factory premises (e.g., rental agreement or electricity bill)
Pollution department consent letter
NOC from fire and water departments
Business PAN card copy
Factory layout and building plan
List of directors or partners
Board resolution or partnership deed
Details of equipment, raw materials, and waste disposal methods
Tax receipt, if applicable
A Factory License provides several key benefits:
Legal Authorization
It ensures the factory complies with safety and health regulations.
Protection from Penalties
Having a valid factory license shields owners from penalties under the Factories Act.
Eligibility for Government Schemes
Factory owners can avail themselves of various government benefits and schemes when they hold a valid license.
Safety Assurance
It guarantees the adoption of safety measures to protect workers' health and well-being.
Do you know?
Factories Act 1948 A legislation enacted to ensure a safe working environment in factories, protections such as regulation of working hours, health and safety measures, and a framework of regular inspections were provided.
Obtaining and renewing a factory license is a crucial step for factory owners to ensure compliance with the Factories Act, of 1948. All applicable factories must register and acquire a license to operate legally. By choosing Credible Corporate Service for assistance with your Factory License Application, you ensure a smooth and efficient registration and renewal process, protecting your business and promoting worker safety.
Let us help you with the documentation and application process for your Factory License.