Factory License: An Overview For MSME's

Updated on July 19, 2024 03:19:31 PM

Factory License is an Important Certification or say authorization granted to MSME's or factories to Commence Manufacturing operations. The Factory License Registration Process is Governed by Factory Act 1948 and issued by the local department of factories and boilers. It is used to regulate the safety conditions of workers and laborers working in the factories. Factory Registration is an obligatory Certification required by all Manufacturing units from their Respective local state authorities.

Therefore, if you are a new startup or Small Factory owner venturing into the manufacturing sector of any kind it is obligatory by law to comply with factory act 1948 and obtain a mandatory authorization to start manufacturing.

We at Professional Utilities can help you get your Factory License online without any hassle and paperwork at competitive Pricing.

Factory License Registration Introduction
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What is Factory License?

Factory Registration Certificate or Factory License is an Authorization given to factories operating in their respective states. The objective of factory registration is to regulate the working conditions and safety of workers in the factory. Factory Registration is a very crucial authorization granted by local authorities in their respective states.

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Eligibility For Obtaining Factory License

Criteria for Factory License Registration is classified into 2 categories

  • Factories having 10 or more workers with consumer power
  • Factories having 20 or more workers without consumer power
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Documents Required For Factory License Certification

These are the List of Documents Required to attach during the filling with local authorities for Factory License Registration.

  • Directors or Partners
  • Owner's ID and Identity Proof
  • PAN Card Details of Business
  • NOC From Water & Fire Department
  • Tax Receipt of Municipal Corporation
  • Address Proof of Factory such as utility bills
  • Partnership Deed or Board resolution as applicable
  • Information Regarding Equipments and Raw Material
  • Consent to establish & Consent to operate From State Pollution Control Board
Factory License Registration Documents
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Factory License Registration

Process For Factory License Registration is as Follows : Applicants are required to

Step 1: Approval for factory building plan:

Before gathering the requisite documents for the set-up of a factory, approval for a factory building license from the concerned authority is essential. To approve your factory establishment, you must draft your factory building plan according to the regulations and standards.

Step 2: Documentation:

Upon receiving the duly approved factory building plan, your next step is to gather all the requisite documents according to the type of organization you want to establish. For this, an applicant should make sure that all the information, you provide in the document is complete and accurate without filling in any discrepancies.

Step 3: Payment of fees for application:

After submitting all the necessary documents, you have to make a payment for the application you’ve filled out as per the guidelines provided by the relevant authority. You have to ensure that you’ve successfully received proof that you’ve paid for the concerned application.

Step 4: Verification of documents:

The concerned authority will verify the originality, accuracy, and information of the documents upon receiving the payment for the application. The authority would rather review the application and the documents required.

Step 5: Inspection by the Chief Inspector of Factories:

The Chief Inspector shall schedule the date for visiting the factory premises. You may need to create transparency before investigators can verify compliance and safety standards. After investigating, the inspector will make a report on your factory based on their observations and true findings.

Step 6: Issuance of certificate:

Based on the remarks made in the report by the investigators, the authorities will decide whether your factory would be a better fit for the license. The applicant would be notified of the decision if the permit had been issued. Otherwise, the applicant needs to take corrective measures and reapply.

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Factory License Cost : What is the Fee for Factory License?

The Professional fees For factory License starts from INR 49,999/- only. Thereafter applicants are also required to pay Govt fee for certification. The govt fee for factory license varies on the basis of eligibility criteria and their respective states.

Note: The aforementioned Fees is exclusive of GST.

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Factory License Renewal : Overview

Factory License are valid upto the time frame of 1-5 years. However the renewal date of the factory license varies from state to state. However the owners are required to apply prior to the due date in order to keep manufacturing continuing without any hindrance.

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Compliances After Factory License Certification

Factory License Registration Compliance

These are the following Statutory Compliances required to be fulfilled by the owner of the factory.

  • Health Provisions
  • Safety Provisions
  • Welfare Provisions
  • Working Hours of Adults
  • Annual Leave and Wages
  • Employment of Young Persons
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Benefits of Factory License Registration

In India, a Factory License is a legal requirement under the Factories Act, 1948, for establishments engaged in manufacturing processes and certain other specified activities. Obtaining a Factory License offers several benefits to both the government and the business owner:

  • Legal Compliance: Obtaining a Factory License ensures that the business complies with the legal requirements outlined in the Factories Act. This helps in avoiding legal issues and penalties for non-compliance.
  • Safety and Health Standards: The Factories Act mandates certain safety and health standards for factories. Obtaining a Factory License ensures that the business adheres to these standards, providing a safe and healthy working environment for employees.
  • Regulatory Oversight: The issuance of a Factory License involves inspection and approval from the Factory Inspectorate. This regulatory oversight helps in maintaining and improving workplace conditions.
  • Employee Welfare: The Factories Act includes provisions related to working hours, leave policies, and welfare amenities for workers. By obtaining a Factory License, a business demonstrates its commitment to the welfare of its employees.
  • Insurance Coverage: Some insurance companies may require a valid Factory License as a prerequisite for providing insurance coverage to the factory. This can be crucial in mitigating financial risks associated with accidents or other unforeseen events.
  • Government Monitoring: A Factory License facilitates government monitoring of industrial activities. This is essential for planning and implementing policies related to industrial development, labor welfare, and environmental protection.
  • Access to Government Incentives: In some cases, having a valid Factory License may make the business eligible for government incentives, subsidies, or support programs aimed at promoting industrial growth and compliance with regulations.
  • Credibility: Possessing a Factory License enhances the credibility of the business. It signals to customers, suppliers, and other stakeholders that the business operates within the legal framework and is committed to maintaining high standards.
  • Environmental Compliance: Factories are often required to adhere to environmental norms. The Factory License process may include checks to ensure that the industrial activities do not adversely impact the environment, promoting sustainable and responsible business practices.
  • Facilitates Expansion: When a business plans to expand its manufacturing operations, having a valid Factory License is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.
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Professional Utilities : Your Registration Partner

We at Professional Utilities understand the importance & impact of having timely authorization from authorities to commence your business as soon as possible. With our team of experts you can get your factory License without any hassle and delay.

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Conclusion

Factory License is an important certification required by MSME's manufacturing units in India. It takes around 30 working days to complete the process and get authorization from the respective local authorities as the factories can be registered only within the state it is operating. The factory license works as a binding force that regulates the working and safety of workers operating in a factory. Therefore it is mandatory for owners to register their factory with authorities at least 15 days prior to commencement of business.

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Factory license registration In Other States

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Frequently Asked Questions

Is factory license mandatory in India?

The Factory License is an obligatory certification in India and is required by all the manufacturing units operating in the country. The factory registration certification is issued by the local authorities in their respective states.

How to get a Factory License in India?

You can get your factory license registration with us in just a few clicks.

  • Contact us
  • Provide Details & Documents
  • Issuance of Factory Registration
What are the fees for factory license certification in India?

The Professional Fees for Factory License Registration with Professional Utilities starts from INR 49,999/- only.

Renewal and Validity of Factory License in India?

The factory license is valid up to the time frame of 1-5 years depending on the different sets of rule and regulation of different states. Owners of factories are required to renew their license prior to their due date.

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