Factory License Registration in Jammu & Kashmir

Before registering for a factory license, get a building plan approved by the Chief Inspector of Factories and construct or extend a manufacturing entity.

• Step 1: Prepare Map Hire a licensed architect and draft a building site and layout. Showcase the dimensions, machinery placements, emergency exits, and ventilation.
• Step 2: File Online Application Form Log in to the J&K Single Window Portal and create a user ID. Submit all the building plans, process flow chart, and blueprints along with Form 1.
• Step 3: Apply for NOCs Obtain clearances, including the Certificate of Consent to Establish/Operate from the J&K State Pollution Control Board and NOCs from the Fire Department.
• Step 4: Fee Payment Pay the required amount of fees shown on the screen. This fee comprises charges for evaluation and inspection from the local authorities.
• Step 4: Scrutiny and Approval The technical department and Chief Inspector of Factories will examine the premises. They will check whether the safety and health measures are followed by occupiers, under the Factories Act of 1948.

The cost of factory license registration in Jammu and Kashmir depends directly upon the total number of workers and installed horsepower. Apart from this, the additional charges comprise building approval fees, safety certificates, and professional fees.

Here is a table representing the government fees for factory license registration in Jammu & Kashmir:

in Jammu and Kashmir, 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.

The criteria for factory license registration are divided into two categories.

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

Under the Factories Act of 1948, the factory license in Jammu and Kashmir is granted by the Chief Inspector of Factories under the Department of Labour and Employment.

As per the rule, the applicability is classified as:

• Factories employing 10 or more workers and involved in a manufacturing process with the aid of power.
• Factories employing 20 or more workers and involved in manufacturing activities without the aid of power.

The processing time for obtaining a factory license is approximately 30 days, including building plan approval, registration, and inspection. Whereas the validity and renewal may vary based on the fee tier.

Operating a factory without a license is a violation of laws under the Factories Act of 1948 and the Jammu & Kashmir Factories Rules of 1972. Non-compliance leads to legal penalties, criminal prosecution, and administrative shutdown until the license is granted by the authorities.

• Under Section 92, handling a manufacturing unit without a valid license is a punishable offence and may impose a fine up to ₹1,00,000 and imprisonment for up to 2 years.
• If the violation continues after the legal notice, then an additional compounding fine will be charged from the applicants on a daily basis.
• This fee will be ₹1,000 on a daily basis until the license is obtained.
• For extreme situations like death and severe injury due to non-compliance, the management will face criminal liability and additional penalties under Section 94A.