Factory License

Are you an aspiring entrepreneur looking to establish your own manufacturing business?

If so, you've come to the right place! Obtaining a factory license can be a complex and overwhelming process, but fear not – we're here to guide you every step of the way.

In this comprehensive guide, we will unveil the secrets behind obtaining a factory license, ensuring that you navigate through the bureaucratic maze with ease. From understanding the legal requirements to preparing the necessary documentation, we've got you covered. Our expert insights will help you save time and avoid costly mistakes, allowing you to focus on what truly matters – building a successful and compliant manufacturing business. 

Let's dive in and unlock the secrets to your manufacturing success!

What is a Factory License?

Factory License refers to the transfer/handover of goods and services from one entity or person to another in exchange for money is known as Trade. Manufacturing a product in a prescribed manner is called manufacturing. An individual/Group that is planning to start a new business needs to get a Factory/Trade License. For instance, Factory/Trade license is to regulate specific laws of business for a particular area or locality. It is designed to ensure that the citizens are not badly affected by Health hazards by the improper carrying of a manufacturing/trade and also to check whether the business is being carried on according to the laws, rules, standards and safety guidelines or not. As its key components, the following are the factors mentioned- 

• The regulations of factory/trade license are laid down by the State government to monitor, check and regulate the trade within a city.
• Factory/Trade license is issued by the municipal corporation of the state where the business is located.
• A factory/trade license authorized an individual/business to carry on trade or business at the premises for which it has been issued.
• Any unauthorized trade between two parties is an offence and may result in a significant penalty to the business. The business owners must apply for a factory/trade license before carrying out any manufacturing/trading activity.
• An application must be submitted before the beginning of any trade activity. Some state governments allow 15 days to 3 months’ time to seek a trade license.
• Trade License once issued requires periodical renewal on an annual basis. Application for renewal of the license must be submitted at least 30 days before the expiry of the licensee.

The checklist for Factory License Registration in India is as follows-

• Hotel
• Manufacturing Industries
• Restaurants
• Commercial Offices / Shopping Malls
• Banquet Halls
• Bakeries
• Canteen
• Food Stall
• Provision Store / Retail shop
• Meat Shop
• Sales of Fruits / Vegetables
• Flour Mills
• Factories
• Theatres
• Institutes (Coaching, Training or education etc.)
• Power Looms
• Cyber Café
• Barbershop
• Dhobi Shop
• Candle Manufacturing
• Timber Wood
• Firewood Sale
• Cracker Manufacturer

Eligibility for Obtaining a Factory License

As per the verdict established by acts, the following are the factories, which are deemed to be eligible for obtaining a factory license-

• A factory with ten or more workers engaged in the manufacturing activity accompanied by the means to power. 
• A factory with twenty or more workers, that is devoid of aid of power.

Having a factory license bestows businesses with innumerable benefits, especially when it comes to undertaking operations in the manufacturing industry. Having a license gives an unsaid legitimacy to legally establish and carry out the procedures in compliance with the regulations. No wonder, let us explore the advantages of having a factory license, which is as follows-

• Legal compliance

One of the key advantages of a factory license is adhering to Legal compliances. Manufacturing operations must specify standards and regulations as narrated by the local authorities. On top of it, obtaining licenses is a must-have for businesses demonstrating a commitment to commence the operations encircling within the legal framework to avoid any penalties due to non-compliance.

• Improved credibility

It goes without saying how a factory license endorses improved credibility. As for manufacturing businesses such as this, it ensures and assures that it adheres to guidelines and is under required supervision. Having a factory license enables you to come across as a legitimate organization offering high-quality products. 

• Adheres to safety standards

A factory license is like an assurance that meets those safety standards or implemented measures. In addition, the main aim here is ensuring safety, by minimizing the risk of accidents and other injuries. 

• Competitive edge

Having a factory license acts as a boon and gives you an edge over others in the competitive industry. As it is with legal compliance, enhanced credibility and adherence to safety standards, gives you a competitive edge over unlicensed operators. Once you conform to it, it is only then you attract potential investors and contracts. 

Therefore, the above-mentioned points are quite a reason why you need to obtain a factory license to operate or initiate.

The documents required for obtaining a factory License are as follows-

• Owner ID and Address roof. 
• Address proof of your factory location, such as an electricity bill or rental agreement. 
• Consent from the Pollution Department 
• NOC from the Water & fire department
• PAN Card copy of your business 
• List of directors
• Partnership deed or Board resolution.
• Information on particulars of equipment & raw material. 
• Municipal corporation Tax receipts

If you are planning to open a factory, one of the first steps you need to take is obtaining a factory license. This license is a legal requirement that ensures your factory operates in compliance with the law and meets all necessary safety and environmental regulations.

• Step 1:- Connect with Corpseed

Firstly, contact Corpseed as your one-stop solution provider. 

• Step 2:- Assigned Dedicated Professional

Secondly, Corpseed aligns a dedicated professional to help you with the Factory license registration. 

• Step 3:- Submit Required Plan-of-Action

Thirdly, the experts will contact you to obtain the plan of action, from the factory owners regarding the submission of the factory plan. Which is a must-have before the construction of the company. With Corpseed, you do not have to worry about the hassle and before you even realise it, our organization will help you obtain Factory License, ensuring a smooth process. 

• Step 4:- Filing Application 

Our experts will undertake the filing of the application on behalf of the factory owner, be it in an online or offline manner. Moreover, documents are to be submitted along with the requested application.

• Step 5:- Payments by Experts

Soon after, our industry experts will be expected to pay the Factory License fee after the submission of the application.

• Step 7:- Inspections & Approval

After the submission of the application, the regulatory body will conduct inspections within the factory premises in ensuring compliance with environmental & safety standards. Followed by a documentation review, accompanied by various checks & visits.  

And after the inspection, if your application seems satisfactory, corpseed will notify you regarding the approval of your factory license. 

• Step 8:- Issuance of Certificate 

Then, the certificate will be issued after the inspections & document submissions, once the respective authority approves it. The follow-ups of the same will be looked after by Corpseed and the certificate will be shared with you over email.

And finally, you get to call yourself a legally authorized factory.

Factory License Online Application 

It is true of how the factory license online application varies state-wise. As per a few states, the online factory registration application can be viewed and filed on the labour department website. For further assistance, a factory license or registration can be filed or commenced with the help of Corpseed.

Factory License Certificate

The factory license certificate is granted by the respective state department of labour. The validity of the same is about five years from the date of issue and, the same might even vary state-wise. Furthermore, the factory owners need to apply or request for the factory license renewal certificate, before the expiry to undertake the smooth factory operations or manufacturing processes.

Obtaining a factory license is a full-fledged process. It is vital to note that factory license renewal is an unsaid obligation, which mentions the expiry of licenses that need to be renewed periodically. You need to remain vigilant in assessing and tracking the renewal date by submitting the documents along with the prescribed fees in a timely manner. It is advisable to avoid being a victim of late fees, penalties or legal issues. 

Most importantly, factory license renewal meets the commitment to ensure compliance with safety standards throughout the operations. To recheck with the same, regular inspections will be undertaken by regulatory bodies in ensuring compliance and failing to do so might result in fines, penalties or, revocation of the factory license.

At Corpseed, we understand the immense value of obtaining a factory license and its tremendous impact on your business's success. With our team of highly experienced professionals, we are committed to helping you unlock new levels of achievement and propel your business forward. By partnering with us, you gain access to industry experts and knowledge to ensure a seamless registration process.