Factory License

Factory license in Jharkhand

The factory owners are required to notify and also register their premises with the local governing authority before the beginning of operations. This helps in facilitating the risk management at workplace and the total implementation of Safety and Health Management Systems in factory premises.

In order to protect workers and ensure that owners provide a healthy environment, the government introduced the Factory Act of 1948. A factory permit serves as a permit document issued by an authority to carry out manufacturing activities. The Factory and Boiler Department issues factory permits. It is the job of the factory and boiler departments to monitor the health, safety and well-being of workers.
Under the Factory Act 1948, every factory owner is required to register his location with local authorities before starting a business. The factory permit functions as a permit document issued by the authorized party to carry out production activities.

The Factory Act 1948 states that a factory must be approved by the Department of Labor and Employment for its construction plans before it can be closed for factory registration. According to this law, registration and renewal of factory permits are also carried out to ensure the safety of workers.

Subject to Section 2(m), “Factory” means all buildings, including your own

(i) where ten or more employees work or have worked on any day during the previous twelve months and in any part where the energy production process is carried out or is normally carried out in this way, or

(ii) where, on any day during the previous twelve months, twenty or more workers are or have been employed and where in any part of the production process is being carried out or is normally carried out without the aid of a power supply, – but not in mines which include in operations that are subject to the Mining Act 1952 (XXXV of 1952), or include mobile Union Force units, railroad warehouses, or hotels, restaurants, or dining rooms;

Also, a factory registered under the Factory Act 1948 must obtain its construction plan approval from the Department of Labor and Employment before it can be covered for factory registration.
Under the Factory Act 1948, each factory must obtain a factory permit if:

10 or more workers engaged in production activities with the help of electricity every day for the previous 12 months or
20 or more workers engaged in manufacturing activities without electricity on any day in the previous 12 months
Before starting construction, renovating a factory or when expanding a facility, the contractor/applicant must apply for approval of the factory plan and obtain a building permit.

Advantages:

This is a city business permit
This helps when applying for another license
This is one of the important factory management license
Protect yourself from the criminal provisions of the Factory Act 1948

s.

According to the Factories Act, the procedure for registration and license is given under section 6 are as follows:

  • Description of factories or business plans of any class has to be submitted to the chief inspector or the state government.
  • Replacement or expanding of any plant or machinery in specified limits, will not be charged additionally for extension of the factory if involved with safe working space and environmental conditions.

Documents Required for Registration

The required documents are to be submitted along with the application form of factory registration.

  • Photograph of Establishment
  • Identity Proof
  • DIN or PAN Card
  • Treasury Challan/Bank Name.

Documents Required for Site Plan Approval

The required documents are to be provided for the approval of your site plan.

  • Form-1 (Particular of Room in The Factory)
  • Questionnaire To Form-1
  • Certificate of Stability
  • NOC of Fire
  • Process Flow Diagram
  • NOC From Local Body/Local Authority
  • NOC From Explosive Department
  • NOC From Others
  • Building Drawing Copy
  • NOC From Electrical Safety
  • Proof of Ownership of factory building premises
  • Notification of Site
  • Memorandum Article
  • List of Directors
  • Resolution for the declaration of Occupier
  • Safety Report
  • On-Site Emergency Plan
  • Health and Safety Policy
  • Documents Required for Renewal

The required documents are to be furnished along with the renewal application form.

  • Form-4
  • Form-4B
  • Treasury or online Challan

Online Application Procedure for Factory Registration

To register for the factory, follow the steps explained below:

Visit Official Portal

  • Step 1: The applicant has to visit the official website of the Labour Act Management System.
  • Step 2: Click on “Online registration and renewal” which is present on the homepage of the portal.

Provide Login Details

  • Step 3: On the next screen, the applicant has to provide the login details if already registered as the existing user with the portal.
  • Step 4: If not already registered then the applicant has to register as the new user with the registration details such as
  • Applicant name
  • Mobile number
  • Date of birth
  • Email address
  • Aadhar number
  • District name
  • After filing all the details and then click on the “Submit” button.
  • Step 5: Then after registration, the applicant will be directed to the page of the factory registration application form.

Read the Instructions

  • Step 6: Before filling the application form, the applicant has to read the instructions carefully and click on the “Agree” button.
  • Step 7: Complete the registration procedure with two steps. They are:
  • Site plan details under Factories Act.
  • Registration under Factories Act.
  • Site Plan Details under Factories Act
  • Step 8: Complete all the information as required in the application form.
  • Step 9: Submit your filled application form by clicking on ”Submit” button.

Registration under Factories Act

  • Step 10: After completing with the previous step then the applicant will be forwarded to the next step registration under factories act.
  • Step 11: Enter the details in the application form which is displayed on the screen and click on “Submit’ button.

Calculate Fee

  • Step 12:  Calculate your prescribed fee to proceed further.
  • Step 13: Click on ”View application’’ option to see the saved application form.
  • Step 14: Select the embedded security form to edit the form and where attachments and payments can be done.

Attach the Documents

  • Step 15: Click on “Attachment button” to add the attachments like the photo of the proposed photo, an identical form of the letter.
  • Step 16: Open the attachment by clicking the “Choose file” button.

Select Payment Mode

  • Step 17: Click on “Payment” button to pay the premium and choose the payment mode.
  • Step 18: The payment can be made by either invoice or by internet banking.
  • Step 19: By clicking on the invoice, you can download the invoice form and deposit it to the Treasury Bank of the respective district, or select online mode to proceed.
  • Step 20: Choosing online then you are redirected to the portal of the Treasury, there you choose Pay without Registration and select the department (SRV-Labor and Employment Department, Uttar Pradesh).
  • Step 21: Enter the name of the concerned Regional Office in the column of the section followed by the Select Treasury column Select the Treasury of the particular district, then provide the name of the establishment in the depositor name, after which, carefully select the head of the related activities and mention the fee.

Furnish Payment Proof

  • Step 22: After making the payment furnish the scanned copy immediately as a proof of fee payment.
  • Step 23: Finally your application is successfully submitted and the date of inspection for your site.

Note: After verification then the digitally signed certified copy of factory license can be downloaded from the portal.

FAQS

Q:1, What is a ‘Factory’ as per Factories Act 1948?

Factory means any premises where in 20 or more workers are working to carry out a manufacturing process with the aid of powers OR whereon 40 or more workers are working to carry out a manufacturing process without the aid of power.

Also Government has made this act applicable to power looms, saw mills, certain industries which use hazardous chemicals, and certain processes carried out using flammable solvents by publishing a notification, even if the number of workers are less than 10.

Q.2, How the licence is obtained?

After submitting the form no.1 duly filled with all respect and with necessary fees paid and if the factory plans are approved, the officers of directorate visit the factory & if he finds that construction of the factory and machinery layout is as per the approved plan and if the conditions of plan approval are complied , then he recommends to Director Industrial Safety & Health for issuance of licence through his superiors and after getting the approval from the Director, licence is issued.

Licence renewal can be done by Additional director or Joint director.

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