Factory License Registration in Chhattisgarh

Before constructing, extending, or using any building, occupiers must get approval for initiating a plan and modification.

• Step 1: Create a Building Layout Appoint a professional architect and explain the basic needs and blueprint of the factory building. Create a building layout and site map that follows the safety and environmental standards.
• Step 2: Obtain NOCs & Log in Apply for Non-Objection Certificates from the specific fire, electricity safety, and water departments. Applicants can log in to the Niwaspass Portal and can apply for a building approval.
• Step 3: Submit Files Gather land papers, NOCs, a flowchart, manufacturing processes, and a flowchart of the buildings and the complete process. Upload the clear copies in PDF format to the Chief Inspector of Factories.
• Step 4: Wait for Approval The Chief Inspector of Factories will review all the documents, including building layout and plans, and check the locality.

The total fees for registration and licensing in Chhattisgarh are variable and may vary. The government fee for registration is based on the maximum number of workers employed on any day of the year and the maximum number of HP installed. Go through the table mentioned below to see the government fee:

In Chhattisgarh, 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 in cities like Raipur, Bhilai, Durg, Korba, Bilaspur, Jagdalpur, Raigarh, and Ambikapur, having a valid Factory License is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.

It's important for businesses to be aware of the specific requirements and conditions associated with Factory Licenses in Chhattisgarh, as there are variations in regulations in different states.

According to the Factories Act of 1948, a factory license is an important certification for manufacturing units. Let’s understand its eligibility criteria in Chhattisgarh for factories:

• Any manufacturing unit employing 10 or more workers on any day of the preceding 12 months and engaged in manufacturing activities with the aid of power.
• Any manufacturing unit employing 20 or more workers on any day of the preceding 12 months and engaged in producing goods and products without the aid of power.

Factory license registration criteria are classified under the following categories.

• Factories with 10 or more workers, works with power.
• Factories with 20 or more workers that do not have access to power.

Under the Factories Act of 1948, in Chhattisgarh, the processing time, validity, and the renewal timelines are listed below in the table format:

Operating a manufacturing unit or a business without a valid license may risk the occupiers and be required to pay hefty fines as compensation. As per Section 92 of the Factories Act of 1948, this fine may extend up to ₹1 Lakh and imprisonment for a maximum of two years.

In case of persistent operations even after a contravention, then the occupiers/directors shall pay a compounding fee of ₹1000. The state authorities can shut the administrative tasks on a temporary basis, until the factory license is granted by the Chief Inspector of Factories.

Factory License registration is a critical requirement for any manufacturing entity who are intending to establish their business in Chhattisgarh. Before constructing or extending a building in the conforming areas such as Raipur, Bhilai, Durg, Korba, Bilaspur, Jagdalpur, Raigarh, and Ambikapur, get prior approval and then register for a license.

With Professional Utilities, businesses can save their precious time and prioritize important tasks. We centralize all the processes from plan approval to handling paperwork with transparent criteria. We only charge professional fees that start from ₹29,999 exclusive of 18% GST. Get in touch with us and our legal team will reach back.