Factory License

A factory license is a legal certificate that factory owners issue from the state government. Every state's factory license is different. It is very important to get this license before starting the operations of a factory. This license tells whether the factory is properly following the rules of safety, health and welfare, and whether the factory is working properly under the Factories Act, 1948. Working without a factory license is a legal offence. This license protects the workers, reduces the chances of risk, and ensures that the factory operations run very smoothly. Once the license expires, it is important to get it renewed. Without a Factory license renewal, any owner can’t proceed with the work. Key points about the factory license are:

• This is a legal approval to run a factory.
• This builds a trust that the factory is properly following the safety, health and welfare standards.
• This is compulsory under the Factories Act, 1948.
• It has to be renewed regularly, otherwise, one might have to face consequences.

What is the Factories Act, 1948?

The Factory Act, 1948, is an important labour law in India. It was enacted to protect the rights of workers and regulate the working conditions of factories. The act ensures that workers have a safe workplace, proper health facilities, fixed working hours and fair wages.

Section 6 of the act gives authority to the state government to monitor factories, register them and issue factory licences. It allows the factory plan to be approved before construction or expansion. The act is a major component of India's factory laws that ensure that factories and industries work lawfully and responsibly.

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

The factory license registration process is simple but must be followed carefully. Here are the main steps:

• Plan Submission: The factory owner has to submit the factory plan to the state labour department before starting construction or expansion. If this plan is approved, then only you can file for the application.
• Filing Application:  The owner can apply online or offline to the state lab department or any factory department. Whatever documents are submitted must be properly checked, signed and attached.
• Payment of Fees: The person applying for a factory license will have to pay the registration fee.
• Grant of Factory License:  As soon as all the verification and inspection are done, the application will be cleared, and the department will issue the factory license

Factory License Online Application

The factory establishment license online application is a very easy and fast process. It may vary from state to state, but what generally happens is this:

• First of all, go to the site of the labour department or the department of factories
• Click on the option of ‘factory registration’
• Create an account and log in
• Fill out the online application and upload the required documents in it.
• Pay the license fees.
• The department will inspect and verify the application, and if it is correct, will issue the factory license.

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.

Corpseed is one of the top consulting firms, offering comprehensive assistance in the factory and labour-related services, guiding businesses through the necessary processes. We help enterprises in obtaining, renewing, and amending factory licenses by managing documentation, ensuring compliance, and coordinating with authorities for smooth and hassle-free approvals. How Corpseed Can Help with Factory License: 

• Documentation Support: We prepare and file accurate documents required for the license application.
• Layout Plan Approval: We assist in getting layout plans approved by authorities.
• Safety Standards Guidance: We guide businesses in meeting workplace safety and health standards.
• Authority Coordination: We coordinate with state departments to speed up approvals.
• License Renewal: We provide complete assistance in the timely renewal of factory licenses.
• License Amendments: We help in making amendments whenever there are changes in factory operations.
• End-to-End Support: We will help from the first step of the process till the last, so that you don’t suffer from any issues.