Factory License Registration in Odisha

As per the Factories Act of 1948, getting a factory license requires a submission of building layout and structural safety plans. To understand the complete process to pass a building plan, go through the steps given below:

• Draft the Plan : Appoint a licensed architect and draw a site layout, elevation, and structural safety plans according to the safety and emergency exits stated as per the rules.
• Online Submission : Navigate to the Go SWIFT Portal under the Government of Odisha. Provide all the necessary details for the application submission. Obtain all the NOCs and submit a file online.
• Pay Fees : Pay the governing scrutiny fee for the plan approval and proceed further for the technical inspection.
• Technical Inspection : The Director of Factories and Boilers, Odisha will review building drawings for health, ventilation, lighting, safety, and compliance.
• Plant Grant : After physical inspection and successful plan approval, occupiers can start with the building construction.

Prepare these documents beforehand to avoid any delays at the last moment. Here are the required documents for a factory license:

While initiating the payment, applicants have to pay a licensing and registration fee. The Government fees for an Odisha Factory license are calculated based on Rule 5 of the Odisha Factories Rules, 1950. This fee structure depends upon the maximum number of installed HP and the total number of workers.

In Odisha, 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:A valid Factory License is essential when a business plans to expand its manufacturing operations in Bhubaneswar, Cuttack, Rourkela, Berhampur, Sambalpur, Balasore, Jharsuguda, Puri, Koraput, and Angul. It streamlines the process of obtaining necessary approvals and permits for expansion. Businesses should be aware of the specific requirements and conditions associated with Factory Licenses in Odisha, as regulations vary from state to state.

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

In Odisha, a factory license is required by a manufacturing unit who are processing, assembles, and packages goods and products. The eligibility for a factory license in Odisha is:

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

According to the Factories Act of 1948 and the Orissa Factories Rules 1950, operating a factory without a license leads to criminal prosecution, imprisonment for years, hefty fines, and suspension of the manufacturing entity.

Read the table below to know the effects of managing a factory without a license: