The government enacted the Factory Act of 1948 to safeguard workers and ensure that the owner provides a safe working environment. Every factory owner must register their premises with the municipal government before starting their business, according to the Factory Act of 1948. A factory license is a document that permits authorities to carry out manufacturing activity. The Department of Factories and Boilers issues factory Licenses. The Factories and Boilers Department is responsible for monitoring worker health, safety, and welfare. A factory license registration under the Factories Act of 1948 must also acquire the labour and employment department’s approval of its building plan before applying for a factory license registration.
Did you know?
A production line Permit is an archive of endorsement given by specialists to do fabricating exercises. Division of the Processing factories and Boilers issues Production line Permits. Industrial facilities and Boilers Office must be aware of the well-being, security, factory license registration, and government assistance of labourers.
To What Extent Should Factory Proprietors Follow the Production Line Act 1948?
The public authority of India requires the types of factories mentioned below to follow the Factory Act 1948.
- Factory with at least 10 labourers and buyer power
- Products that are hazardous
- Products that are non-hazardous
- Manufacturing factories with at least 20 specialists with no power utilisation
Also Read: How to Apply for a Factory Loan
Benefits of Getting an Industrial Facility Permit
The primary goal of acquiring a factory licence is to ensure that proper safety measures are implemented to protect the employees’ safety, welfare, and health. The advantages of getting a Factory License are listed below.
1. Provides Legal Advantages
The factory owner can take advantage of the government’s legal benefits under several schemes.
2. Determines Provisions for Workers
Female and youthful specialists are taken care of under this concerning pay rates, well-being and security, work conditions, and the number of hours invested in work.
3. Unexpected or Additional Issues
Occasions, leaves, number of hours, compensation, enrolling of ladies, enrolling youngsters, employing, terminating, and numerous variables are dealt with when one gets the factory permit.
4. Enhances Productivity
Following the criteria established by the Factories Act of 1948 improves the productivity of all workers.
5. Ensures Benefits Equally
The permit guarantees that each worker seeks equivalent freedoms and treatment under the foundation.
Steps to Factory License Registration in India
Since obtaining a factory licence is mandatory, you must first register, which can be done by completing the procedures below:
- Applicants must complete and submit the designated form No. 2 to the Director of Factories and Boilers and the requisite documentation and payments.
- The responsible party examines the application after it is received.
- The paperwork is also examined, and if everything is in order, the process is sent to the appropriate authority for approval.
- If there are any discrepancies in the documents, you must correct them and resubmit them within the deadline.
- Once the approval is granted, a licence is issued along with a registration certificate, and a covering letter is required.
Mandatory Documents for Factory License Renewal Online
The following is a list of the documents you will require while registering or renewing the factory license online:
Form No. 2 must be completely filled out and signed.
Fees are calculated according to the charge structure specified.
One of the directors or partners is nominated to function as the occupier by a resolution of the board of directors or partners.
All factories with a minimum of 50 employees must follow a health and safety policy.
Authenticated copy of a recognised authority’s stability certificate is issued.
A List of the Requirements for Obtaining a Factory Permit
The processing factory proprietor/s will be expected to take authorisation well ahead of time from the State government regarding where the industrial facility will be found. To have the option to possess the premises, the proprietor will likewise have to send a legal notice to the main overseer under the Segment 7 Demonstration at least 15 days before any movement or inhabitance can be accomplished there. The accompanying subtleties would be required as of now;
- Name of the occupier
- Address of the occupier
- Name of the administrator that will manage everything
- Number of workers that will be recruited
- Assembling process which will be done at the said factory
- Whatever other subtleties which require close checking
Factory License Renewal Process
If your factory license has run out, you’ll need to renew it. It is necessary to follow the technique outlined below;
- A fully completed form No. 2 must be provided at the time of renewal.
- The designated authority will examine this application.
- The approval process will commence if all of the documents and information are in order after the inspection.
- At this point, if any corrections are required, they will be made.
- The application will then be sent to the appropriate authorities for approval and all necessary revisions and documents.
- The owner will subsequently receive a copy of the renewed license that the relevant government official has attested.
- A copy of the original factory license, along with the fees and Form No. 2, should be supplied for the renewal process.
Factory registration in India is governed by the Factory Act of 1984. The ministry of labour and employment is in charge of this. Obtaining a licence is required for all and is primarily designed to ensure that the owners and staff are well taken care of in the event of any problems during operations. Factory work is generally exhausting and dangerous, and employees are frequently overworked and underpaid. This factory license ensures that no one is exploited and that everybody involved with the establishment is subject to government scrutiny.
Also Read: Learn About Starting a Plastic Manufacturing Business in India
Obtaining a Factory License: A Step-by-Step Guide
Step-1
Create an applicant profile on the state’s government website where the factory will be located. A validated e-mail address and passport must be used to create the profile.
Step-2
Filling out Application Forms 1 and 2 with all of the necessary information.
Step-3
All documents mentioned in the form should be uploaded and attached.
Step 4
You must submit payment of the government-mandated fees.
Step 5
Obtain a Form -1 and Form-2 acknowledgement.
Step 6
The application form will be scrutinised, and the authority will verify the documents. A factory inspector would also visit the site for a physical inspection if the application were new.
Step 7
If there are no discrepancies and all conditions and paperwork are met, the department will issue a Conditional licence.
Step 8
The certificate can be retrieved from the web portal once the authority has issued the licence.
If the Department has cancelled the application, the licensee has 30 days to resubmit the application after making the necessary modifications.
Conclusion
As indicated by the Industrial facility Demonstration of 1948, each production line proprietor must get endorsement for building plans from the neighbourhood specialists before beginning a production line. The factory license is an endorsement report given by concerned specialists to direct assembling exercises.
A factory license is an archive of endorsements given by specialists to complete assembling exercises. Department of Factories and Boilers issues Industrial factory license. Department of Factories and Boilers must be aware of labourers’ well-being, security, and government assistance.
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