To secure the workers and ensure that the owner provides a healthy environment, the government has introduced the Factory Act 1948. According to the Factory Act 1948, factory owners must register their premises with the local authorities before commencing their business. A factory license is a document of approval authorities provide to carry out manufacturing activities. The authority of factories and boilers issues Factory licenses. The Factories and Boilers Department must check labour, health, and welfare.
In addition, a factory registered in the Factory Act, 1948 must obtain its building plan approval from the labour & employment department before covering itself for a factory license.
Guidelines to be adhered to by the Factories
The government has declared the Guidelines that are required to be followed by those factories are:
- 10 or more labours are involved in manufacturing activity with the aid of power on any day of the preceding 12 months or
- 20 or more labours are involved in manufacturing activity without the aid of power on any day of the preceding 12 months.
Before starting construction, reconstruction of a factory, or in the event of factory expansion, the entrepreneur or applicant must apply for approval of the factory plan and obtain permission for construction.
Benefits of obtaining a factory license:
- Municipal approval: The factory license serves as an official approval from the municipality or relevant authorities to operate a business in a factory setup.
- Facilitates other licenses: Having a factory license can streamline the process of obtaining other necessary licenses or permits required to operate a factory, as it demonstrates compliance with safety and regulatory standards.
- Essential requirement: The factory license is a fundamental requirement for running a factory legally. It ensures that the factory meets the prescribed safety standards and regulations.
- Compliance with the law: Obtaining a factory license helps protect the business from potential penalties and legal consequences outlined in the Factories Act of 1948. It ensures that the necessary safety measures are in place to safeguard the well-being of employees.
Please note that these are general benefits of obtaining a factory license, and the specific advantages may vary depending on local regulations and requirements.
Procedure for obtaining a factory license:
- Submission of the plan
- Details by Owner:
- Manufacturing process type
- Number of employees
- Name of the factory and its owner
- Address of the factory
- Name of the manager
- Information on machinery deployed
- Filing of Application
- Payments of Fees
- Verification & Inspection
- Grant of license
Key Deliverables:
a. Completed Application Form
b. Copy of Payment Challan
c. Factory License