Factory License – An Overview
Mandatory registration under the Factories Act, 1948 for manufacturing premises to ensure compliance with worker safety, health and welfare standards.
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Factories Act, 1948
Every factory employing 10+ workers with power or 20+ workers without power must register under the Act. Factories are classified as hazardous or non‑hazardous based on processes and risk to health, life or environment. Building plan approval from the Labour Department is required before licensing.
Key Benefits of Obtaining a Factory License
1. Ensures Employee Safety & Welfare: Mandates safety measures, healthy conditions and welfare provisions. 2. Special Provisions: Covers women, young persons, wages, hours, shifts and general working conditions. 3. Access to Benefits: Eligible for government schemes and legal protections. 4. Boosts Productivity: Improves morale through fair practices. 5. Regulates Employment Matters: Governs hours, overtime, leaves, recruitment, termination, and juvenile employment. 6. Promotes Equality: Ensures equal rights and benefits for all employees.
1. Documents Required for Factory License Registration
● Form‑1: Details of factory rooms
● Approved factory building plan
● Applicant’s ID & address proof
● List of company directors
● MOA, AOA & board resolution (or partnership deed)
● Bank account details
● Proposed commencement date
● License fee payment receipts
● Land ownership or lease deeds with NOC
● Local authority consents
● Machinery & equipment details
● Hazardous/non‑hazardous waste info
● Raw material, by‑products, process flow chart
● Latest property/land tax receipt
Procedure for Factory License Registration
1. Obtain approval of building plan from State Labour Dept or Chief Inspector.
2. Submit application (Form‑1) with factory details: process, workforce, owner/manager names, machinery.
3. Pay prescribed license fees.
4. Undergo site inspection if required.
5. Receive Factory License from Dept of Factories & Boilers upon verification.
Renewal Process & Penalties
Renew annually before expiry using Form‑4 (renewal) and Form‑4B (annual return) with fee challan. Late renewal incurs 10% fee penalty per month of delay.
Voluntary Suspension of License
1. Apply in writing for suspension with reasons.
2. Attach supporting documents and worker list with settlements.
3. Dept reviews application, inspects premises and suspends or cancels license.
Factory License Fees
Fees vary by state rules, factory size, workforce and hazard classification.
Processing & Renewal Timeline
Initial licensing and renewal generally completed within 15–30 working days, subject to inspection schedules.
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