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Factory License Registration
A Factory License is a mandatory certification required under the Factories Act, 1948, for businesses involved in manufacturing and production. It ensures that the factory complies with safety, health, and welfare regulations, protecting both workers and the environment. Any factory employing 10 or more workers with power usage or 20 or more workers without power usage must obtain this license from the respective State Government or Local Authority.
Benefits of Factory License
Legal Compliance – Avoid penalties and legal issues by ensuring your factory adheres to statutory requirements.
Workplace Safety – Promotes a safe working environment, reducing risks of accidents and health hazards.
Business Credibility – Enhances trust among stakeholders, customers, and employees.
Government Benefits – Eligibility for government subsidies, financial aid, and industrial incentives.
Smooth Operations – Prevents operational disruptions due to legal non-compliance.
Documents
To apply for a Factory License, you need the following documents:
- Factory Layout Plan & Building Approval Certificate
- Identity & Address Proof of the Owner (Aadhar, PAN, Passport, etc.)
- Proof of Ownership (Sale Deed, Lease Agreement, or Rent Agreement)
- List of Directors/Partners with Contact Details
- Memorandum & Articles of Association (For Companies)
- Electricity Bill & Power Sanction Certificate
- NOC from Pollution Control Board (if applicable)
- Health & Safety Compliance Reports
- List of Workers & Machinery Details
Process
Step 1: Register on the State Government’s labor department portal.
Step 2: Fill out the online application form and upload necessary documents.
Step 3: Pay the prescribed government fees as per your factory’s size and type.
Step 4: Authorities review the application and conduct inspections if required.
Step 5: Once approved, the license is issued, and a digital copy is available for download.
Steps to Obtain a Factory License
Check Eligibility – Ensure your factory meets the required criteria under the Factories Act.
Prepare Documents – Gather all necessary paperwork as per state-specific regulations.
Submit Application – File the factory license application with the respective state labor department.
Inspection by Authorities – Officials may conduct an on-site inspection to verify compliance.
Approval & Issuance – Upon successful verification, the Factory License is issued.
Frequently Asked Questions
A. Any manufacturing unit employing 10 or more workers (with power usage) or 20 or more workers (without power usage) must obtain a Factory License.
A: The processing time varies by state but typically takes 15-30 days from application submission.
A: Yes, Factory Licenses need periodic renewal, usually annually or every five years, depending on state regulations.
A: Operating without a valid Factory License can lead to hefty fines, factory shutdown, and legal action.
A: Yes, modifications can be made for expansion, machinery upgrades, or ownership changes by submitting an amendment application.
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