Factory License Registration & Compliance
Applicability of Factories Act, 1948
The Factories Act 1948 is applicable throughout the country, including Jammu & Kashmir, and covers all manufacturing processes and establishments falling within the definition of “factory” as defined u/s 2(m) of the Act. The Act is also applicable to factories belonging to the Centre/State Government (section 116).
Definition of factory as per Factories Act, 1948
Where ten or more than ten workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing power is being carried on with the aid of power, or is ordinarily so carried on, or
Where twenty or more than twenty workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.
Objectives of Factories Act, 1948
The Factories Act was incorporated in the year 1948 with objectives of regulating the working conditions in factories, regulating health, safety, welfare, and annual leave of factory workers to ensure adequate safety measures of workers employed in factories.
Moreover, the Act also makes provisions regarding the employment of women and young persons, annual leave with wages, etc.
The procedure of registering a factory in India
It is obligatory for every factory in India to abide by the rules and guidelines stated in the Factories Act, 1948. The first step towards establishing a factory in India is the registration of the factory, and once the registration is done, the licenses can be availed from the government. Following is the procedure to be followed for factory registration in India:
An applicant has to apply with duly filled in Form No-2, a set of prescribed documents and fees prescribed in the proper head of Account in the shape of Treasury Chalan in the office of Director of Factories & Boilers, of his state.
Upon receiving the application, the same is scrutinized by the concerned officer.
Post scrutiny, if the documents are found correct, it is processed for approval by the competent Authority.
In case shortcomings are observed then, the applicant is asked to submit the corrected application in a time-bound manner.
Compliance Checklist under the Factories Act
The owner of the factory has to take prior permission from the State Government or the Chief Inspector in writing for the site on which factory is to be situated.
Further to get a license, the occupier must send the notice under section 7 of the Act to the Chief Inspector, at least 15 days before he begins to use the premise as a factory containing the following details:
Name and address of the Occupier.
Name and address of the factory.
Type of the manufacturing process to be carried out in the factory.
Name of the manager of the factory.
Number of workers likely to be employed.
Other prescribed particulars.
