Complete guide for factory license Registration in India

Prior to the Factories Act of 1948, factory owners were required to register their premises with local authorities. The authorization to operate their factories and engage in manufacturing was granted by the local authorities. In order to protect worker safety, the Factories Act, 1948 (the “Act”) mandates that certain factories that meet its requirements register and apply for a factory license. After the factory license expires, the owners of the factory may renew it by submitting an application to the relevant state department of factories or labor.

Application of factory license

The factories listed below are required by the Act to obtain a factory license:

A factory license check list

• Prior to filing for a factory license, the following documents must be submitted:
• .factory structure or grounds
• .the NOC (No Objection Certificate) from the fire, water, and pollution board
• .The factory layout plan and
• .Notification of the Chief Inspector
• Prior to applying for a factory license, the factory owner must have the factory plan approved by the relevant state labor department authorities. Regarding the factory’s location, the owners must obtain approval from the relevant state government. Factory owners may apply for a factory license once the location and plan have been approved by the state government.

• In addition, fifteen days prior to engaging in any activity or making use of the factory premises, they ought to send the chief inspector a legal notice that includes the following details:
• .Name and location of the occupant
• .The factory’s name and address
• .The factory manager’s name is
• .The number of employees who will be hired
• .Sort of production method that will be used at the plant
• .Installed or to be installed in the factory, the total rated horsepower
• any additional information needed

Registration of factory licenses

The state governments are authorized by Section 6 of the Act to oversee and authorize licenses and registrations under the Factories Act. The following is the procedure for obtaining a factory license:

Plan submission
The factory plan needs to be submitted by the factory owners to the labor department of the state. This needs to be turned in before a factory is built or expanded. The owners of the factory may apply for a factory license after the factory plan has been approved.

Application submission
The state’s labor department or department of factories accepts offline or online applications for factory licenses from owners of factories. It must be turned in with all properly signed documentation.

Fee payment
After, the required fees must be paid in order to receive the factory license after submission of the license application.

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

Guidelines for the Factories to Adhere to

• The following rules have been set by the government and must be followed by those factories:
• Have at least 10 employees and the ability to influence consumers.
• possess zero energy usage and a minimum of twenty workers.

• The factories are typically divided into two subcategories based on the process:
• Dangerous
• Not dangerous

Benefits of Obtaining a Manufacturing License

Making sure that the required safety measures are taken to advance the health, safety, and welfare of the workers is the main objective of obtaining a factory license. The benefits of getting a factory license are listed below.

Employee-Specific Provisions: The Act delineates regulations concerning youth and female employees, employee remuneration, work schedules, and other aspects of the workplace.
Makes use of legal benefits: The factory owner is qualified to receive legal benefits from the government through a number of different programs.
Increasing Productivity: The Factories Act of 1948’s requirements and principles are properly implemented to increase worker productivity.

• hours spent,
• Pay and wages,
• Vacation time and holidays
• recruiting of women and youth
• The recruiting and dismissal of workers,
• Additional terms of service or guidelines applicable to employees of shops, establishments, public entertainment venues, etc.

Advantages of a factory license

A factory license represents the municipal endorsement of the factory’s operations. Applying for and getting other licenses will be beneficial. Owners of factories are required to obtain this license; otherwise, they risk having to close their doors. Additionally, it shields owners from the Factories Act’s punitive provisions. It guarantees that employers take the proper safety precautions to advance the wellbeing and health of their workforce. After obtaining a factory license, owners can also benefit from various programs run by the government.

What MSME means ?

Small, medium, and very small businesses are referred to as “MSME.” The MSMED Act, 2006, marked the official recognition of micro, small, and medium-sized enterprises (MSME) by the Indian government. MSMEs, as defined by the legislation, are businesses that manufacture, process, and store goods and commodities.

Benefits of signing up for MSME

• The following are some benefits of MSME registration:

• The government reimburses the costs associated with registering patents and trademarks. Business loans without collateral
• It’s easy to use the overdraft facilities.
• defense against slow payments
• Cost of ISO Certification Payment
• subsidy for electricity bills

MSME Registration: A Critical Aspect

Micro, small, and medium-sized enterprises (MSME) are the backbone of the economy in developing countries such as India. In other words, as these businesses expand, the country’s economy thrives. The MSME Act of 2006 allows for registration of businesses in both the manufacturing and service sectors. Considering the importance of MSMEs to the Indian economy, the government provides MSME Registration, which allows MSME enterprises to receive a number of benefits.

Legal Window offers all the services you require under one roof, along with assistance with additional compliances and all the necessary registration. Please email info@pletheonconsulting.com or call +91-9971540088 to speak with a member of our staff about MSME registration.