Factory License

Operating a manufacturing unit or factory involves stringent regulations designed to ensure worker safety, environmental protection, and legal compliance. Obtaining a Factory License is a mandatory and critical step for any such establishment in India. At Account Assure,we specialize in simplifying the complex process of Factory License registration and ongoing compliance, allowing you to focus on your production with peace of mind.

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What is a Factory License?

A Factory License is a mandatory permit issued by the State Factory Inspectorate under the Factories Act, 1948. This Act governs the health, safety, welfare, and working conditions of workers in factories. The license serves as an official authorization for a factory to operate, ensuring it meets all statutory requirements related to its premises, machinery, processes, and employee well-being.

Factory license applicability

As per the Act, the below factories must obtain the factory license:

When the factory has ten or more workers involved in manufacturing activity with the aid of power
When the factory has 20 or more workers involved in manufacturing activity without the aid of power

Factory license registration Steps

Section 6 of the Act empowers the state governments to monitor and grant licenses and registrations under the Factories Act. The process to obtain a factory license is as follows:

Plan submission

The factory owners must submit the factory plan to the state’s labour department. This must be submitted before the expansion or construction of a factory. Once the factory plan is approved, the factory owners can apply for a factory license.

Filing application

A factory owner can file an application for the factory license online or offline with the state’s labour department or department of factories. It should be submitted along with all duly signed documents.

Payment of fees

The prescribed fees should be paid for obtaining the factory license after submission of the license application.

Grant of factory license

After payment of fees and inspection of the application and documents by the respective authority, the department issues the factory license to the owners.

Factory license online application

The online application process to obtain a factory license differs from state to state. In some states, the online factory registration and license application can be filed on the labour department website. While in other states, the factory registration and license application can be filed on the department of factories website. Below is the general process of the factory license online application:

Visit the state labour department or the department of factories website.
Under services, click on ‘Factory Registration’.
Create an account and Login, if required.
Fill out the application form, upload documents and submit the application.
Pay the prescribed fees.
The respective department will inspect the application and grant the factory license.

Documents required for factory license

Owner ID and address proof
Address proof of factory premises or location, such as rental agreement or electricity bill
Pollution department consent letter
NOC from the fire and water department
Business PAN card copy
Factory layout and building plan
List of directors
Board resolution or partnership deed
Particulars of equipment and raw materials
Particulars of hazardous and non-hazardous wastes
Tax receipt, if any

How Account Assure Simplifies Your Factory License Journey:

Account Assure provides specialized services to ensure your factory is legally compliant and operates safely. Our expertise covers:

Feasibility & Eligibility Assessment:

Evaluating your premises, proposed processes, and workforce to determine the applicability of the Factories Act and the specific requirements for your unit.

Comprehensive Document Preparation

Detailed guidance on all required documents, including architectural plans, stability certificates from approved engineers, fire NOCs, and environmental clearances.
Assistance in compiling and organizing your documentation to meet regulatory standards.

Application Filing & Submission:

Expert preparation and accurate submission of your Factory License application to the State Factory Inspectorate.
Ensuring all details are meticulously entered to minimize rejections.

Liaison & Follow-up with Authorities

Proactive follow-up with the Factory Inspectorate and other relevant departments (like Fire Department, Pollution Control Board) to expedite approvals.
Assistance in responding to queries or observations from the inspecting authorities.

Inspection Support

Guidance on preparing your factory premises for inspection, ensuring all safety and welfare provisions are in place.

License Renewal & Amendments

Timely reminders for annual license renewals and comprehensive assistance with the renewal process.
Support for making necessary amendments to your license in case of changes in premises, machinery, or processes.