Factory License Registration in Bihar - Fees, Documents & Process

The registration fee for the factory license in Bihar is determined by the number of workers on any day and the maximum horsepower installed. The specific fee, based on employee headcount and HP, is provided in Schedules A, B, C, and D.

Here is the table representing the fee structure for factory license registration in Bihar:

In Bihar, the process to get a factory license differs from other states. At first, occupiers must build a plan and get it approved by the authorities. After that, fill in the application for a factory license.

Here are the steps to get a building plan approval and start building construction and extension.

Under the Factories Act, 1948, the approving authorities for specific categories are mentioned below:

in Bihar, 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.
• 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.
• 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.
• Facilitates Expansion: When a business plans to expand its manufacturing operations in Verna, Kundaim, Pilerne, Bicholim, Tivim, Corlim, Mapusa, Bicholim, and Sancoale, having a valid factory license is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.

In Bihar, any premises that require a process or assemble goods are specified as a factory. It includes the involvement of electricity supply, steam, and manual labor. It helps occupiers and workers to minimize workplace hazards, conduct regular safety drills, and maintain equipment.

Under the Section 2 (m) of the Factories Act, 1948, a factory is any premises, including its precincts, where a manufacturing process is carried out. Below are the common eligibility criteria for obtaining a factory license in Bihar.

• Any unit employing 10 or more workers on any day of the preceding 12 months that uses electrical and mechanical power for manufacturing processes.
• Any unit employing 20 or more workers on any day of the preceding 12 months without power consumption.
• Any premises involved in manufacturing hazardous products.

See the table mentioned below to understand the eligibility criteria at a glance:

Read more about the processing timeline to receive a license, validity, and renewal period:

In Bihar, the transfer of a factory license is possible. But the business owners are required to follow the complete rules and regulations without violating them.

• When there is any change in the occupier of the factory, before the expiry date of the license, the new occupier shall apply for a transfer from the Inspector of Factories.
• In case of death or insolvency of the occupiers, the new succeeding individual taking over the factory or functioning shall apply for a transfer and amendment of the license for the remaining period.
• But they are not eligible later than one month after the death or succession of the new occupier.
• The transfer application should be accompanied by a letter from the previous occupier or documentary evidence for legal proof.
• The ₹100 fee is payable by the new occupier applying for the transfer

Compare the roles, responsibilities, authority, and legal obligations of a Factory Occupier and Factory Manager.

Operating a factory without authorization from the Bihar State Government is a breach of the law. Authorities have the legal power to seize the business until the premises comply.

Under the Central Act, Section 92, operating a factory without a license can lead to:

• For any contravention of any provision of this Act, the occupier and the manager of the factory shall be guilty of an offence.
• The occupier and the manager are each punishable with imprisonment of up to two years, or a fine of up to ₹1,00,000, or both.
• If the contravention is still continued after conviction, a further fine of up to ₹1,000 per day applies.
• A repeat conviction attracts an enhanced penalty of up to three years' imprisonment and a fine of ₹10,000 to ₹2,00,000.

Post-license compliance is an obligatory compliance that is required to keep business operations legal after granting the license. This includes maintaining accurate statutory registers, including physical or digital, and filing the periodic returns prescribed under the Factories Act, 1948, and the Bihar Factories Rules, 1950.

Factory license registration in Bihar is compulsory to set up manufacturing units and start operations. However, it is a time-consuming process and requires proper documentation.

With the help of Professional Utilities, business owners can navigate these challenges smoothly. The team of legal experts assists with conducting site visits, handling building layout plans, and organising documents for faster approval.

With decades of experience, we centralize, automate, approve, and renew factory licenses on behalf of owners, so they can prioritise other administrative tasks to scale their business operations.

Need a legal partner for obtaining a factory license anywhere in India? Get in touch with Professional Utilities. Our team will get back soon to inquire about the issues.