Factory License Registration in Jammu & Kashmir - Process & Fees

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:

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 NOC - 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. Within 30-45 days, the occupiers will get approval for a building plan.

In Jammu and Kashmir, obtaining a factory license is a compulsory certification required by occupiers for the safety and well-being of workers, provision for employees comprising salary, health, and maintaining equality among all employees.

• A factory license authorizes a business to commence business operations without any legal consequences or penalties.
• By obtaining a license, businesses demonstrate their commitment towards the welfare of employees, including working hours, leave policies, and welfare amenities.
• It is considered a prerequisite document for obtaining insurance, bank loans, and incentives under government schemes.
• Enables businesses to establish a manufacturing unit in the prominent areas of Jammu and Kashmir such as Srinagar, Bari Brahmana, Lassipora, Samba, Khunmoh, Kathua, Ghatti, Rangreth.

In Jammu and Kashmir, services are administered by the Chief Inspector of Factories for approvals, appraisals, and licensing under the Factories Act of 1948.

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.

Obtaining a factory license is a legal requirement in Jammu and Kashmir. It is necessary to follow the rules and regulations stated under the Factories Act of 1948 and Jammu and Kashmir Factories Act, 1999. Here are the rules to follow after registration:

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, operating a manufacturing unit without a valid license is a punishable offence and may result in a fine of up to ₹1,00,000 and imprisonment for up to 2 years.
• If the violation continues after the legal notice, then an additional fine of ₹1,000 will be charged from the applicants daily under Section 94.
• Under the Proviso to Section 92, in certain situations like death and severe body injury, occupiers have to pay a minimum fine of ₹25,000 for death and ₹5,000 for serious injury.