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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 Himachal Pradesh - Process, Fees & Benefits

Factory owners are required to register for a license to operate a manufacturing unit in Himachal Pradesh. It acts as a legal permission granted by the Department of Labour and Employment. The department maintains the records of businesses that are following certain rules and regulations under the Factories Act of 1948.

This law regulates the workers’ standards, including their health and safety, power consumption, and usage of chemicals. Section 6 of the Himachal Pradesh Factories Rules, 1950 states that the Chief Inspector is the approving authority and Form 1/ Form1-A/Questionnaire as the filing set are the key requirements in the licensing and registration process.

Take approval from the Industry Department before proceeding with the Department of Labour and Employment. There are different categories for factory license applications, including building plan approval applications, registration applications, renewal applications, and amendments.

Running a factory without a legal certification can risk businesses and may discontinue the complete process. Apply for a factory license with Professional Utilities without any hassle and start operations across Himachal Pradesh, including in Shimla, Solan, Baddi, Kangra, Kullu, Mandi, and Hamirpur.

Factory License Certificate in HP [Sample]

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Process for Factory License Registration in Himachal Pradesh

Occupiers can obtain a factory license in Himachal Pradesh online through the OFRIS portal. To know the correct steps, read below:

  • Step 1: Log in to the Portal - Access the official OFRIS (Online Factory Registration Information System) Portal and log in with an existing ID using credentials.
  • Step 2: Fill Form 3 - Fill in the required details, including occupier’s personal details, factory details, locational details, district, zone, etc.
  • Step 3: Upload Documents - Attach all the important documents along with Form 3, such as approved building plan, business proof, board resolution and premises proof, machinery layout and process flow chart.
  • Step 4: Pay Fees - Pay the auto-calculated license fee shown on the screen via net banking. This fee is charged on the basis of installed horsepower and maximum number of workers.
  • Step 5: Inspection - After submitting an application form, the Chief Inspector of Factories investigates the factory location. After a physical inspection by the Department, if shortcomings are found, they are conveyed by email as well as through the message board. If the factory passes all the safety and health measures, they are granted a factory license.
  • Step 6: Download E-Factory License - Once the license is granted successfully, applicants can download a factory license directly from the OFRIS Portal.
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Building Plan Approval in Himachal Pradesh for Obtaining Factory License

Get a building plan approval for constructing, extending, and modifying the manufacturing unit without any legal issues. Here are the steps:

  • Step 1: Prepare Documents - Get a stability certificate signed by the chartered engineer or architect. Apart from this, they receive clearances including power sanctions from HPSEB, Fire NOC, and HP Pollution Control Board Consent.
  • Step 2: Register with New Account - Visit the OFRIS (Online Factory Registration Information System)portal and create an account. Applicants must fill out Form 1, Form 1-A, and the questionnaire to meet the National Building Code.
  • Step 3: Track Status - Monitor the application status with the online tracking module from the same OFRIS portal and wait for approval.
  • Step 4: Technical Evaluation - The local urban bodies or the Town and Country Planning (TCP) Department will examine the building layout and plans technically.
  • Step 5: Obtain Building Plan Approval - The TCP will grant permission for construction or expansion of the manufacturing unit.
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Documents Required for Factory License Registration in Himachal Pradesh

The required documents for a factory license registration in Himachal Pradesh are listed below. Applicants have to submit documents first for approval of building plans, and later at the time of registration:

01

Approval of Building Plans

  • Form No. 1 & Form No. 1-A
  • Questionnaire
  • Manufacturing Process Flow Chart
  • Board Resolution & Director/Partner List
  • Machinery List & Machine Layout
  • Site & Building Plan
  • Copy of Power Sanction Certificate from HPSEB
  • Company/Partnership Registration Certificate
  • Department of Industries Approval
02

Registration & Grant of License

  • Form 3
  • Certificate of Stability
  • Resolution Passed by Board of Directors
  • List of Directors
  • List of Partners with Complete Residential Address
  • Certificate Regarding Incorporation of Company
  • Copy of Power Sanction Certificate from HPSEB
  • NOC from Chief Fire Officer
  • NOC from HP Pollution Control Board

Note: Occupiers can contact us in case of any queries related to documentation

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Factory License Registration Fees in Himachal Pradesh

The following table outlines the government fee for factory license registration based on installed horsepower and the number of workers.

Quantity of Horse Power installed ( Maximum Horse Power) Number of persons to be employed on any day during the year
Up to 09 From 10 to 20 From 21 to 50 From 51 to 100 From 101 to 250 From 251 to 500 From 501 to 1000 From 1001 to 1500 From 1501 to 2000 Above 2000
Nil ₹250 ₹500 ₹750 ₹1,000 ₹2,000 ₹3,000 ₹4,500 ₹6,000 ₹9,000 ₹12,000
Upto 20 ₹500 ₹750 ₹1,000 ₹2,000 ₹3,000 ₹4,500 ₹6,000 ₹9,000 ₹12,000 ₹16,000
Exceeding 20 but not exceeding 50 ₹750 ₹1,000 ₹2,000 ₹3,000 ₹4,500 ₹6,000 ₹9,000 ₹12,000 ₹16,000 ₹20,000
Exceeding 50 but not exceeding 100 ₹1,000 ₹2,000 ₹3,000 ₹4,500 ₹6,000 ₹9,000 ₹12,000 ₹16,000 ₹20,000 ₹25,000
Exceeding 100 but not exceeding 250 - ₹3,000 ₹4,500 ₹6,000 ₹9,000 ₹12,000 ₹16,000 ₹20,000 ₹25,000 ₹28,000
Exceeding 250 but not exceeding 500 - ₹4,500 ₹6,000 ₹9,000 ₹12,000 ₹16,000 ₹20,000 ₹25,000 ₹28,000 ₹32,000
Exceeding 500 but not exceeding 1000 - ₹6,000 ₹9,000 ₹12,000 ₹16,000 ₹20,000 ₹25,000 ₹28,000 ₹32,000 ₹36,000
Exceeding 1000 but not exceeding 1500 - ₹9,000 ₹12,000 ₹16,000 ₹20,000 ₹25,000 ₹28,000 ₹32,000 ₹36,000 ₹40,000
Exceeding 1500 but not exceeding 2000 - ₹12,000 ₹16,000 ₹20,000 ₹25,000 ₹28,000 ₹32,000 ₹36,000 ₹40,000 ₹45,000
Exceeding 2000 but not exceeding 3000 - ₹16,000 ₹20,000 ₹25,000 ₹28,000 ₹32,000 ₹36,000 ₹40,000 ₹45,000 ₹50,000
Exceeding 3000 but not exceeding 5000 - ₹20,000 ₹25,000 ₹28,000 ₹32,000 ₹36,000 ₹40,000 ₹45,000 ₹50,000 ₹55,000
Exceeding 5000 but not exceeding 7000 - ₹25,000 ₹28,000 ₹32,000 ₹36,000 ₹40,000 ₹45,000 ₹50,000 ₹55,000 ₹60,000
Exceeding 7000 but not exceeding 10000 - ₹28,000 ₹32,000 ₹36,000 ₹40,000 ₹45,000 ₹50,000 ₹55,000 ₹60,000 ₹65,000
Exceeding 10000 but not exceeding 15000 - ₹32,000 ₹36,000 ₹40,000 ₹45,000 ₹50,000 ₹55,000 ₹60,000 ₹65,000 ₹70,000
Above 15000 - ₹36,000 ₹40,000 ₹45,000 ₹50,000 ₹55,000 ₹60,000 ₹65,000 ₹70,000 ₹75,000

The professional fee for factory license registration in Himachal Pradesh is provided in the table below.

Professional Fees 18% GST on Professional Fees Total (Exclusive Govt. Fees)
₹29,999.00 ₹5,400 ₹35,399
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What is Factory License Registration in Himachal Pradesh?

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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Why is a Factory License Important in Himachal Pradesh?

A factory license in Himachal Pradesh is legally required under the Factories Act of 1948 to ensure manufacturing units comply with state rules, workers' safety, legal operations, and environmental standards.

  • It acts as a government-issued permission to run a manufacturing unit and protects it from heavy fines, monetary penalties, and imprisonment.
  • Assures proper ventilation, clean drinking water, lighting, and sanitation for workers.
  • Ensures heavy machinery and proper equipment are installed and supervised to prevent accidents and severe injury.
  • Required by banks and financial institutions to provide monetary help to the businesses.
  • Businesses become eligible for utilizing various perks and amenities offered by the state government under new schemes.
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Benefits of Factory License Registration in Himachal Pradesh

iIn Himachal Pradesh, 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:

  • Provides capital subsidies up to 4 crores to manufacturing bodies in the prominent areas of Haryana.
  • Offers a State Goods and Services Tax (SGST) to manufacturing units engaged in commercial production.
  • Grants electricity duty exemptions and power tariff for eligible units.
  • Facilitates businesses in the conforming areas of Himachal Pradesh in Baddi, Nalagarh, Barotiwala, Parwanoo, Solan, Kala Amb, Paonta Sahib, Shimla, Mandi, Kangra
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Eligibility Criteria for Factory License Registration in Himachal Pradesh

The eligibility for a factory license registration requires meeting the thresholds under the Factories Act of 1948. Section 2(cb) states the following criteria for manufacturing units:

  • Manufacturing units employing 10 or more workers with the aid of power and engaged in manufacturing activities.
  • Manufacturing units employing 20 or more workers without the aid of power and involved in the manufacturing process.
  • Any establishment engaged in a hazardous process regardless of the number of workers onsite.
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Processing Timeline, Validity and Renewal Period for Factory License Registration in HP

Read the details below to understand the total time taken to get a license, its validity, and renewal timeline to avoid late fees:

01

Total time taken to obtain a factory license

The processing timeline to get a factory license is within 30 days from the date of submission.

02

Validity period

In Himachal Pradesh, the license will be valid up to 31st December of each calendar year.

03

Renewal

As per the HP Factories Rules, renewal can be done after one, five, or ten years, based on the applicability selected during registration.

The late fee for the renewal process incurs 25% in excess of the standard fee

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How to renew a factory license in Himachal Pradesh?

Under the Factories Act of 1948, the applicants can renew their factory license for a period of one or five years, based on the applicability. The timeline for renewal will take 30 days after activation of an account on the OFRIS portal and filling Form 1 and Form 3. It must be verified by the Chief Inspector of Factories.

  • Step 1: Log in - Access the official portal of OFRIS and login to an existing account with credentials.
  • Step 2: Apply for Renewal - Choose the option “Apply for Renewal” from the main dashboard.
  • Step 3: Update Factory Details - Provide the updated factory details, including the occupier’s name, number of employee headcount, and maximum number of installed horsepower.
  • Step 4: Submit a Renewal Fee - The fee will be calculated on the basis of the maximum number of machinery setups and total number of workers. Pay the renewal fee through net banking or debit card.
  • Step 5: Issuance of Factory License - Download the renewed factory license from the OFRIS portal and start operating a manufacturing unit.
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What Happens If a Factory Operates without a License in Himachal Pradesh?

Operating a manufacturing unit without a legal certification from the authorities may risk the factory. It will be considered a breach of law under the Factories Act of 1948. Violating the law imposes hefty monetary fines and years of imprisonment on businesses.

  • Violation of the law can attract monetary fines up to one lakh and jail for years, which may extend up to 2 years.
  • State labour authorities and inspectors can shut down the administrative work until the factory license is granted by the Chief Inspector of Factories.
  • Authorities may order local authorities to cut down electricity and water supply for a long period of time.
  • Businesses can lose eligibility criteria for bonuses, government tenders and amenities.

Here is a table representing the consequences of operating a factory without a license:

Offence Legal Section Penalities Details
Operating a factory without a valid license Section 92 Imprisonment up to 2 years, or a fine up to Rs.1,00,000, or both.
Continuation of an offence after warnings Section 92 Further fine up to Rs.1,000 for each day the contravention continues.
For repeating an offence after a previous conviction Section 94 Imprisonment up to 3 years, or a fine of Rs.10,000 to Rs.2,00,000, or both.
Accident causing serious bodily injury (Chapter IV Contravention) Section 92 Fine not less than Rs.5,000
Accident causing death of a person (Chapter IV Contravention) Section 92 Fine not less than Rs.25,000; imprisonment up to 2 years.

It is important to follow all the rules and regulations stated under the Factories Act of 1948 and Himachal Pradesh Factories Rules 1950 to avoid any legal consequences.

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Compliance to Follow After Getting Factory License in Himachal Pradesh

Once the occupiers get a factory license in Himachal Pradesh, it is important to follow ongoing statutory, environmental, and labour compliances. Read a list of certain rules and regulations that must be followed:

  • File half-yearly return Form 35 before the deadline of 14th July under the Himachal Pradesh Factories Rules.
  • Submit annual returns by filling Form 34 under the Factories Act by 31st January and returns under the Minimum Wages Rules by 31st January.
  • Renew factory license before expiration along with Fire NOC and State Pollution Control Board (SPCB) clearances.
  • Keep proper ventilation, lighting, and emergency exits for employees' convenience.
  • Provide and enforce the use of personal safety equipment, PPE, and safety guards.
  • For hazardous processes, conduct a medical checkup regularly to protect workers from diseases.
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Apply for a Factory License in Himachal Pradesh with Professional Utilities

A factory license is mandatory for all industrial organisations that are operating a manufacturing unit in Himachal Pradesh. A valid license ensures that employers are following the safety and health measures under the Factories Act of 1948.

If a business is ready to construct, extend, or establish a manufacturing unit anywhere in Shimla, Solan, Baddi, Kangra, Kullu Mandi, and Hamirpur, get in touch with Professional Utilities.

We provide service effortlessly, from assisting in building plan approval to granting a license from the Chief Inspector of Factories. For any queries, businesses can contact us, and our team will get back to them soon.

Get Expert Consultation

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FAQ’s On Factory License Registration in Himachal Pradesh

Who is required to obtain a factory license under the Factories Act, 1948?

Under the Factories Act, 1948, any business that intends to start manufacturing activities - including factories employing 10 or more workers with the aid of power, or 20 or more workers without the aid of power is required to obtain a factory licence.

What is the fee structure for factory license registration in HP?

The fee structure for a factory license in Himachal Pradesh depends totally on the maximum number of installed horsepower and the total number of employees working in a factory.

Which department issues a factory license in Himachal Pradesh?

In Himachal Pradesh, the Chief Inspector of Factories, under the Department of Labour & Employment, issues a factory license in Himachal Pradesh.

Is a factory license mandatory for small-scale factories in HP?

A factory license is mandatory for small-scale industries in Himachal Pradesh, only if they cross the specific threshold that includes factories employing 10 or more workers with the aid of power or factories employing 20 or more workers without the aid of power.

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Factory License Registration in Uttarakhand

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Factory License Registration in Uttar Pradesh

Understand the factory license registration process in Uttar Pradesh, with applicability, advantages, licensing fees, and applicable laws to avoid penalties and legal cases.

Factory License Registration in Jammu & Kashmir

Explore everything about the process for a factory license registration in Jammu & Kashmir, along with its applicability, required documents, and important compliance requirements to get a factory license.

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Find the complete process for a factory license registration in Punjab, required documents, applicable fees, and key compliance requirements for factory establishment.

Disclaimer:The information provided on this website is intended for general information purposes only. Although all reasonable efforts are made to ensure that the information provided is correct and reliable, it is not advised to be used as a substitute for professional advice. The information herein is not to be used in place of seeking professional services, counsel, or guidance. We highly advise that you consult a professional before you make any business or legal decisions regarding the information presented on this website. This website and its contents are given "as is", and we do not take any responsibility for any action that is taken based on information given on this website.

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