Get a Factory License in Kerala

Occupiers must submit the documents required for a factory license in Kerala at the time of registration. So it is necessary to arrange all the listed documents beforehand and start registration.

The factory license fees in Kerala are variable and based on different factors, including the facility’s maximum number of workers and the installed horsepower (H.P). Other than this, it depends directly on other crucial aspects, including:

Plan Approval Scrutiny (APPENDIX -III)

• Under the Kerala Factories Act of 1957, Rule 3, the fees for approval of plan, including construction, extension, and modification, are ₹170 per 10 sq.m (Layout of Machinery, Grant of Permission)
• For plan approval (construction, extension, rectification for second and subsequent scrutiny revision, applicants have to pay ₹1655/- for each application.
• Approval of plan for re-installing of machinery and layout, which don't include the approval for building plans; an additional amount of ₹1655/ is charged.

License and Registration Fees (APPENDIX -I)

As per the Kerala Factories Act of 1957, APPENDIX-1 [under Rule 5 (1)], the registration and licensing fees are charged by comprising installed machinery and the maximum number of workers.

See the table below to understand the exact fee component under the Kerala Factories Act of 1957.

Professional Fees

• Occupiers can outsource a third-party vendor or professional legal team to assist with the complete process.
• They have to submit additional professional fees for the service and government fees.

At Professional Utilities, our price for factory license registration starts at only ₹ 29,999. We follow transparent pricing criteria for assisting our clients

In India, 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 Kochi, Kanjikode, Edayar, Puzhaykkal Padam, Veli, Chathannoor, and Aroor, having a valid Factory License is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.

In Kerala, the eligibility criteria for a factory license registration include any factory that involves electricity, steam, and manual labour for producing goods and products. It is applicable for all categories, including gig workers, contractual labourers, and permanent workers.

Under section 85 of the Factories Act, 1948, the worker thresholds for obtaining a factory license are:

• Factories employing 10 or more workers that are involved in manufacturing units with the use of an electricity power supply.
• Factories employing 20 or more workers that are involved in manufacturing units without the use of electricity and power supply.

To renew a factory license in Kerala, access the Department of Factories & Boilers portal, submit Form No. 2, submit a renewal fee, and upload documents and submit the application. Here are the step-by-step points to complete the renewal process:

• Log in to the Portal : Open the official website of the Department of Factories & Boilers and log in to your account with the credentials.
• Select Service : Click on the renewal option displayed on the dashboard, and select renewal for auto- registration.
• Complete Form 2 : Fill in the updated factory details, including the number of workers and the maximum number of installed machines.
• Attach Documents : Upload the scanned copy of all the necessary documents in PDF format only.
• Submit Renewal Fees : The page will be redirected to a payment section. Choose a convenient option to make a payment and submit the form.
• Get Renewed License : Get an acknowledgment receipt and download a renewed factory license.

The timeframe to get a factory license in Kerala is approximately 30-60 days from the date of submitting an online application from building approval to registration.

There are different stages involved in factory license registration:

• Get a site plan, building plans, layout blueprint, and submit to the Chief Inspector of Factories for approval.
• Once the construction ends and machines are installed properly, fill Form 2 with the Structural Stability certificate and register for further operations.
• After an investigation and inspection by the Chief Inspector of Factories, download the e-certificate.

In Kerala, the validity for a factory license is initially for one calendar year, which expires on 31st December. But with the recent amendments, the factory license can be renewed after an extended period of 10 years.

• The short validity for a factory license registration in Kerala is for one year (January to December)
• The extended renewal time can be stretched from one year to 10 years. [Rule 7(5) of the Kerala Factories Rules].
• The license must be renewed before the deadline; otherwise, a late fee of 25% to 50% is imposed depending on the date.

If a factory operates without a valid license, it is considered a breach of the law. The Directorate of Factories & Boilers may impose heavy financial fines and potential imprisonment for an occupier.

It may impact business operations; the authorities can shut down the manufacturing unit and discontinue the resources and utilities essential for production. It can delay partnerships and may make it challenging for investors and stakeholders to reinitiate the proposal due to legal risk.

• The initial fine is 2 lakhs and imprisonment for up to 2 years or both.
• If the operation continues even after a warning or notice, a fine of 1000 will be charged.
• In case of workers' death or severe injury due to non-compliance, then Section 92A covers an additional fee and imprisonment.

A provisional license is a temporary permission granted for a short duration before a final verification. While a regular license is a legal and final authorization that is granted to businesses after a physical verification and inspection by the Chief Inspector of Factories.