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Detailed Eligibility Assessment Accurate Documentation Guidance Compliance Review Ensure Regulatory Accuracy and Approval Assistance to Minimize Delays and Rejections Liaison with Factory Inspector & Department Factory License Application Management Factory Site Plan and Layout Guidance Advisory on Safety, Health, and Welfare Renewal and Amendments guidance

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Factory License Registration in Assam - Process, Fees & Documents

Factory license registration is a mandatory requirement for businesses operating a manufacturing unit in Assam. The registration process is governed by the Chief Inspector of Factories under the Department of Labour Welfare.

The main aim of factory license registration is to ensure the workers' safety, proper sanitation, lighting, and medical facilities under the Factories Act of 1948. Before registering for a factory license, it is required to get prior approval for constructing or extending a building by submitting Form 1 and Form 2 for registration and grant of factory license.

Any business that is deciding to establish a factory in the prominent areas of Assam, including Guwahati, Tezpur, Dibrugarh, Tinsukia, Silchar, Jorhat, Bongaigaon, Nagaon, and Barpeta, must apply for a license before commencing any manufacturing process.

With Professional Utilities, business owners can obtain their factory license conveniently within a specified guaranteed timeframe.

Factory License Certificate [Sample]

Factory License Certificate in assam

What is Factory License Registration in Assam?

Factory License Registration Introduction

Factory Registration Certificate is a permit issued to factories operating in their respective states. The purpose of factory registration is to regulate the working conditions and safety of workers in the factory. Factory Registration is a very important authorization granted by local authorities in their respective states.

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Documents Required for a New Factory License in Assam

Below is the list of documents required for Building Plan Approval and Factory Licence Registration in Assam.

01

Site Appraisal

  • Dag/Patta Number
  • Soil Test
  • Contour Map
  • MSDS
  • Emergency Plan
  • Meteorological Data
02

Building Plan Approval

  • Site Plan
  • Plan Elevation of Factory Building
  • Form 1
  • Manufacturing Flow Chart
  • ID proof of Owner and Manager.
  • Fire NOC
  • NOC from Municipal Corporation or Gaon Panchayat
03

Registration & Grant of License

  • Form 2 (Prescribed under Rule 4 and 7 in triplicate)
  • Treasury Receipt
  • Execution of Deed of Partnership
  • Articles of Association and Memorandum
  • Appointment letter in respect of Chief Administrative Head from Ministry/ Board in case of Govt.
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Factory License Registration Fees in Assam

The factory license registration fees in Assam are determined by the maximum number of installed horsepower (H.P) and the total number of workers employed in a factory.

Total H.P. installed inclusive of mobile equipment Maximum number of persons to be employed on any day during the year
20 50 100 250 500 750 1000 2000 5000 above 5000
Nil H.P ₹ 135.00 ₹ 270.00 ₹ 405.00 ₹ 810.00 ₹ 1688.00 ₹ 2700.00 ₹ 5400.00 ₹ 8100.00 ₹ 10800.00 ₹ 13500.00
Up to 10 H.P. ₹ 270.00 ₹ 405.00 ₹ 540.00 ₹ 1080.00 ₹ 2025.00 ₹ 4050.00 ₹ 8100.00 ₹ 10800.00 ₹ 18500.00 ₹ 16200.00
Above 10 H.P- Up to 50 H.P- ₹ 450.00 ₹ 540.00 ₹ 810.00 ₹ 1688.00 ₹ 2700.00 ₹ 5400.00 ₹ 10800.00 ₹ 13500.00 ₹ 16200.00 ₹ 18900.00
Above 50 H.P - Up to 100 H.P ₹ 788.00 ₹ 1012.00 ₹ 1350.00 ₹ 2700.00 ₹ 4050.00 ₹ 8100.00 ₹ 13500.00 ₹ 16200.00 ₹ 18900.00 ₹ 21600.00
Above 100 H.P- Up to 250 H.P- ₹ 1080.00 ₹ 1350.00 ₹ 2025.00 ₹ 3600.00 ₹ 5400.00 ₹ 10800.00 ₹ 16200.00 ₹ 18900.00 ₹ 21600.00 ₹ 24300.00
Above 250 H.P Up to 500 H.P- ₹ 1350.00 ₹ 2025.00 ₹ 2700.00 ₹ 5400.00 ₹ 8100.00 ₹ 13500.00 ₹ 18900.00 ₹ 21600.00 ₹ 24300.00 ₹ 27000.00
Above 500 H.P Up to 750 H.P- ₹ 1688.00 ₹ 2700.00 ₹ 5400.00 ₹ 8100.00 ₹ 10800.00 ₹ 16200.00 ₹ 21600.00 ₹ 24300.00 ₹ 27000.00 ₹ 30375.00
Above 750 H.P- Up to 1000 H.P ₹ 2700.00 ₹ 5400.00 ₹ 8100.00 ₹ 10800.00 ₹ 13500.00 ₹ 18900.00 ₹ 24300.00 ₹ 27000.00 ₹ 30375.00 ₹ 33750.00
Above 1000 H.P Up to 2000 H.P ₹ 5400.00 ₹ 8100.00 ₹ 10800.00 ₹ 13500.00 ₹ 18900.00 ₹ 24300.00 ₹ 27000.00 ₹ 30375.00 ₹ 33750.00 ₹ 37125.00
Above 2000 H.P Up to 5000 H.P ₹ 8100.00 ₹ 10800.00 ₹ 13500.00 ₹ 18900.00 ₹ 24300.00 ₹ 27000.00 ₹ 30375.00 ₹ 33750.00 ₹ 37125.00 ₹ 40500.00
Above 5000 H.P Up to 10000 H.P ₹ 10800.00 ₹ 13500.00 ₹ 18900.00 ₹ 24300.00 ₹ 27000.00 ₹ 30375.00 ₹ 33750.00 ₹ 37125.00 ₹ 40500.00 ₹ 45000.00
Above 10000 H.P. ₹ 13500.00 ₹ 18900.00 ₹ 24300.00 ₹ 27000.00 ₹ 30375.00 ₹ 33750.00 ₹ 37125.00 ₹ 40500.00 ₹ 45000.00 ₹ 49500.00
Professional Fees 18% GST on Professional Fees Total (Exclusive Govt. Fees)
₹29,999.00 ₹5,400 ₹35,399 /-
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Process for Factory License Registration in Assam

The online process for the factory license registration in assam involves a portal. Read the steps below to complete the registration:

  • Step 1: Portal Registration - Visit the official portal of Seva Setu Assam and generate a Unique Business Identification Number.
  • Step 2: Fill Common Application Form - Complete Form 2 ( in triplicate), provide the essential details about the occupier, manager, worker headcount, and connected horsepower (H.P)
  • Step 3: Upload Documents - Submit the list of important documents including Partnership Deed, Company Incorporation Articles, or Board Resolutions. It should be uploaded in the prescribed PDF format.
  • Step 4: Initiate Payment - Pay the required fees by providing the UAIN (Unique Business Identification Number) via Treasury Challan and keep the receipt.
  • Step 5: Investigation - The Chief Inspector of Factories will conduct an inspection. If the inspectors are satisfied with the required rules and regulations under the Factories Act of 1948, they will upload the inspection report online within 2 working days.
  • Step 6: Issuance of License - Obtain a license directly from the portal and keep it for future use.
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Process for Building Plan Approval in Assam

For a building plan approval process in Assam for building construction or extension, or setting up a manufacturing unit, follow the steps below:

  • Step 1: Hire Professionals - Engage with a registered engineer and architect and create an outline for the building, site plan, and flow chart.
  • Step 2: Portal Registration - Log in or register on the Sewa Setu Portal and select the relevant building permission service. Fill out Form 1 and provide necessary details about the building and factory.
  • Step 3: Upload Documents - Send the necessary documents in the form of soft copies in the prescribed PDF format.
  • Step 4: Technical Checks - The Zonal engineers will examine the files of an applicant for structures above G+2, while the technical committee inspects safety and structural stability.
  • Step 5: Fees Payment - Once the commissioner approves the premises for construction and extension, the applicants receive an alert to pay a final processing fee.
  • Step 6: Download the Certificate - The document is issued to provide further details at the time of registration.
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Benefits of Factory License Registration in Assam

In Assam, having a factory license is an essential certification for businesses that are willing to construct a building or start manufacturing activities. Here are the several benefits of factory license registration in Assam:

  • Grants legal authorization to factories operating under the Factories Act of 1948, which shields the business from prosecution, penalties, and legal cases.
  • North East Industrial Development Scheme (NEIDS), 2017 comprises eligible prominent industrial units in the manufacturing and service sectors, including Assam, to promote industrialization and maximize income generation through capital subsidy, tax reimbursement, and insurance subsidy.
  • Safeguards employees' health, safety, and welfare by treating them equally and facilitating perks.
  • Promotes businesses to apply for bank loans, credit, and government subsidies.
  • Considered as an essential requirement for government procurement processes and supply tenders.
  • Strengthens the brand reputation among business partners, stakeholders, and export markets.
  • For facilitating expansion or planning to expand its manufacturing operations in Guwahati, Dibrugarh, Bongaigaon, Tezpur, Jorhat, Numaligarh, Silchar and Digboi, it is compulsory to have a valid factory license.
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Eligibility for obtaining Factory License in Assam

Before applying for a factory license in Assam, it is required to meet certain applicability criteria stated under the Factories Act of 1948 and the Assam Factories Rules 1950 :

  • Factories with 10 or more workers that have access to power
  • Factories with 20 or more workers that do not have access to power
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Timeline, Validity & Renewal of Factory License Registration

The processing time, validity period, and renewal requirements for a factory license in Assam are outlined below.

Classification Document Type
Processing Timeline Typically, the timeline to get a factory license takes 4-6 months in total.
90 days for site appraisal, 45 days for plan approval and 45 days for registration process.
Expiry Timeline It is valid for one, five or ten years based on corresponding fee multipliers.
Renewal Timeline Occupiers should renew a factory license 60 days before a license expires. It must be submitted via Sewa Portal.
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Common Reasons for Factory License Rejection in Assam

There are several reasons that can affect the completion process and delay it. Here are the common reasons for factory license rejection in Assam:

  • Constructing a building or altering a factory building without prior formal approval of the layout stated under Section 6 of the Factories Act of 1948.
  • Differences between submitted blueprints of premises and the physical setup, such as unapproved structural extensions, machinery positioning, and emergency exits.
  • Failing to apply for NOCs (No Objection Certificates) from Fire and Assam Pollution Control Board.
  • Providing incorrect land ownership details and occupier details, including rent, lease deed, plant and machinery.
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Factory License in Key Assam Industrial Areas

Here is a list of manufacturing activities carried out at AIDC (Assam Industrial Development Corporation) along with cities and sectors:

Location Manufacturing activity Sector
AIDC industrial estatesStatewide — mixed-use sheds
  • Plastic goods, HDPE pipe and PVC products
  • Steel and aluminium fabrication, furniture
  • Food processing: bakery, wheat flour, soya nuggets
  • Bamboo and cane products, ice slabs, gas cylinders
Light & MSME
NumaligarhGolaghat district
  • Crude oil refining — Numaligarh Refinery Limited
  • Petroleum products, wax and bitumen
Petroleum
BongaigaonChirang district
  • Oil refining and petrochemicals — IOCL Bongaigaon Refinery & Petrochemicals
  • Synthetic fibre and polymer intermediates
Petroleum & petrochemicals
DigboiTinsukia district
  • Crude oil refining — Asia's oldest operating refinery, commissioned 1901
  • Microcrystalline wax and diesel processing
Petroleum
SilcharCachar district
  • Pulp and paper manufacturing — Cachar Paper Mill
  • Bamboo-based processing for the Barak Valley
Paper & pulp
JorhatJorhat district
  • Tea processing and CTC/orthodox manufacture
  • Tea machinery and plywood production
Tea & agro-based
NamrupDibrugarh district
  • Nitrogenous fertiliser — Brahmaputra Valley Fertilizer Corporation
  • Methanol and formaldehyde — Assam Petro-Chemicals Ltd
  • Captive thermal power generation
Fertiliser & chemicals
Tea-factory beltUpper Assam gardens
  • Withering, rolling, fermenting and drying at garden-based factories
  • Auction-grade CTC dominant, orthodox in select estates
Tea & agro-based

In Assam, there are different sectors specialised based on geographical location to carry out manufacturing activities accordingly carried by AIDC (Assam Industrial Development Corporation).

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Penalties for Operating a Factory without a License in Assam

Operating a factory without a license can result in serious implications for both occupiers and managers. It is considered as violating a law specified by the Factories Act of 1948 and leads to monetary fines and criminal prosecution:

  • Under Section 92 of the Factories Act of 1948, the initial charges can reach up to ₹2,00,000.
  • Breaching the law even after a contravention may add a further fine of ₹1,000 per day.
  • The authorities have the power to shut down the administrative work and discontinue the electricity and power supply.
  • The late fee for factory license renewal is 25% of the standard requisite fee.

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Significance of Factory License in Assam

In Assam, under the Factories Act of 1948, acquiring a license is an important stage for starting a factory in industrial areas. It ensures proper working conditions for both employees and protects employers from legal risks. Read the importance of a factory license in Assam:

  • It mandates that the manufacturing unit complies accurately with the Factories Act of 1948.
  • Protects occupiers from heavy monetary fines, legal cases, and administrative shutdowns.
  • Facilitates refined working conditions, environment, and medical aid to workers
  • Helps in securing bank loans, funds and investments from the stakeholders and non-profit organisations.
  • Makes it simpler to get approval for further extensions and building construction without any delays.
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Governing Authority for Factory License Registration in Assam

Under the Factories Act of 1948, the governing authorities are allocated for specific factory types in Assam:

Authority Category
Assistant Director More than 300 workers in a factory
Director 300+ workers in a factory
Chief Inspector of Factories For major accident hazardous factories
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Compliances after Factory License Registration in Assam

After getting a factory license, occupiers have to follow safety and welfare measures to protect the business from legal cases and penalties. Follow the rules and regulations mentioned below:

  • Submit an annual return application Form 21 before 31st January and a half-yearly return Form 22 within 2 months through the Sewa Setu Portal before it expires.
  • File compulsory annual and half-yearly returns for employment, accidents, and ongoing safety performance to the state labour authorities.
  • Amend the factory license before expanding the building, increasing the horsepower (HP) capacity, installing additional machinery, or a change in the designation of occupier or manager.
  • Keep employees' records updated, including working hours, leave, and inspection notes that are required further by the Chief Inspectorate of Factories, Assam.
  • Facilitate continuous provision of clean drinking water, proper ventilation, cleanliness, medical check-ups, and washing facilities.
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Get a Factory License in Assam with Professional Utilities

The factory license in Assam is an obligatory certificate required for businesses under the Factories Act of 1948. Occupiers must apply for a building plan approval and then register for a factory license online to get a license in Assam, including Guwahati, Tezpur, Dibrugarh, Tinsukia, Silchar, Jorhat, Bongaigaon, Nagaon, and Barpeta.

Operating a manufacturing unit without a license can cause legal consequences and affect the entire process. Therefore, prepare a list of important documents and apply for a factory license with Professional Utilities. We offer our service at an affordable price, which is convenient for business owners. For more details or any queries, reach out to the team at Professional Utilities.

FAQ’s On Factory License Registration in Assam

Is factory license mandatory in Assam?

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

How to apply for a factory license in Assam?

To apply for a factory license in Assam, request a building plan approval, send a proper structural flow chart, site plan, log in to the portal, fill Form 2, upload scanned copies of documents, and pay an applicable fee.

How much does a factory license cost in Assam?

In Assam, there is no fixed flat rate for factory license registration. The government fee is dynamic and charged on the basis of the maximum number of installed horsepower (H.P) and the total number of employed workers in the factory.

What is the validity period for a factory license in Assam?

In Assam, the factory license is applicable for one, five, or ten years based on the fee tier.

What is Dag and Patta Number in Assam?

Dag number is a unique plot or survey number that specifies a parcel of land, while Patta number is a legal document number that confirms the ownership rights to that land in Assam.

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