If you are willing to start your factory or startup in India, then you must understand the process to apply for factory license in India. With the approval of the government, you are allowed to start a business and regulate products in India.
Applying for a factory license involves various steps. The process varies depending on the location of the type of factory you are setting up. So, you must understand the process to obtain a factory license.
What Is a Factory License?
Factory License is a legal governing document given by the local authorities. It is necessary to run factories and carry out manufacturing activities. The license is granted as per the Factory Act 1948. It ensures that the Factory is running as per the rules and is safe for the workers.
Why is it Necessary To Apply For Factory License?
Applying for a factory license is essential for several reasons. The registration of a factory license is related to legal compliance, safety, & operational efficiency.
- A factory license ensures that your business complies with the various legal requirements laid down by government authorities.
- Operating without the factory license leads to heavy fines, penalties, or even the closure of the Factory by authorities.
- When you obtain a factory license, it indicates that the Factory meets specific safety and health standards, which are crucial for the well-being of employees.
- Factories must adhere to environmental regulations, such as waste management and pollution control, which are often scrutinized during the licensing process.
- A factory license increases the credibility of your business, demonstrating that your operations are legally recognized and meet all necessary regulations.
How To Apply For Factory License In India?
The online application for the factory license varies from state to state. If you are looking for a factory license for Uttar Pradesh, then the process is different, and for other states, it’s different. However, you must apply for the permit online through the mentioned process.
- Visit the state Labour Department or the Department of Factories website.
- Under services, click on ‘Factory Registration.’
- Create an account and log in, if required.
- Fill out the application form,
- Upload documents
- Apply.
- Pay the prescribed fees.
- The respective department will inspect the application and grant the factory license.
You can simply download the factory license from the online portal or connect with your consultant to provide you license.
Checklist That Requires Before Applying For Factory License
Before obtaining a factory license or applying for the registration, you must complete all the documents & further necessary things that are required.
- Factory building/premises
- NOC (No Objection Certificate) from the fire, water and pollution board
- Factory layout plan
- Notice to chief inspector
Before applying for the factory license, a factory owner must get the factory plan approved by the respective state labor department authorities. For the factory location, factory owners must obtain permission from the respective state authority. If they get approval from the state government regarding the factory location, then they can apply for factory license.
To obtain a factory license, the Factory owner must send a legal notice to the chief inspector 15 days before. To carry out the factory license, the factory premises contain the following information:
- Name and address of the occupier
- Name and location of the Factory
- Name of the manager of the Factory
- Number of workers that will be hired
- Type of manufacturing process that will be carried out at the Factory
- The total rated horsepower installed or to be installed in the Factory
- Any other particulars as required
Documents Required For Factory License
To obtain the factory license in Uttar Pradesh or india, you must contain all the necessary documents for factory license with the application:
- 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
- Details of hazardous and non-hazardous wastes
- Tax receipt, if any
Benefits Of Factory License
When you obtain the factory license, you will get multiple benefits of obtaining a permit. For the factory business, the factory license is a municipal approval. If you receive the factory license, then you will not face any issues and will be free from government interference. Otherwise, your Factory will be shut down very soon if you do not obtain a factory license.
When a factory owner obtains a factory license, they will get multiple benefits from the government scheme. The license ensures that the owner is working as per the guidelines of the Factory Act 1948 & adopting appropriate safety measures to promote their work.
Conclusion
Obtaining a factory license is a lengthy process. But if you work as per the mentioned guidance, then you can get it. Or you can hire a legal consultant for the whole process. They will guide you and make your factory license more relevant and appropriate as per your needs. You only have to connect with the team, and they will file an application and coordinate with the authorities to apply for factory license.
Is A Factory License Required For MSME?
As per the Ministry of Industry [Department of Industrial Development] notice no 412 dated July 25, 1991, the small industry that manufactures schedule III items does not require a factory license.
What Is The Cost Of Factory License In Delhi?
The factory license cost varies as per the house power installation & Maximum number of workers employed during a year. So, you must consult with an expert on legal compliance.
Which License Is Required For Manufacturing Business?
A factory License is required for the manufacturing business under the Factories Act of 1948.
