Factory License
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Factory License
Factory License: What Is It?
The Factory Act 1948 was enacted by the government to safeguard the workers and guarantee that the owner offers a healthy workplace. Before starting a firm, all factory owners are required under the Factory Act of 1948 to register their establishment with the local government. An official document granting permission to engage in manufacturing is a factory license. Factory licenses are issued by the Department of Factories and Boilers. The welfare, safety, and health of the employees must be monitored by the Factories and Boilers Department.
Additionally, before applying for factory registration under the Factories Act of 1948, a factory must get the labor and employment department's approval of its building plan.
The Advantages of Getting a Factory License
Getting a factory license is mostly done to make sure that the right safety precautions are taken to advance the health, safety, and welfare of the workers. The following are the advantages of obtaining a factory license:
- Offers Particular Benefits to Workers: The Act outlines the requirements pertaining to young people and female employees, as well as employee wages, working conditions, and hours.
- Controls a Range of Matters: It aids in the regulation of a number of issues, including working hours, wages and payments, leaves, holidays, the hiring and firing of employees, and the enlistment of women and minors.
- Benefits of the Law: Under several programs, the plant owner is eligible to receive legal benefits from the government.
- Boosts Efficiency: Employee productivity is increased when the Factories Act of 1948's regulations and recommendations are properly implemented.
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Required Documents to Get a Factory License
Rules that the Factories must follow
Have at least 10 employees and a sizable customer base. Employ at least 20 people, and avoid using electricity. Based on the method, the factories are often separated into two subcategories:
- Have a minimum of 10 workers and consumer power.
- Have a minimum of 20 workers and do not consume power.
The factories are broadly divided into two sub-categories depending on the process-
- Hazardous
- Non-hazardous
How to Register for a Factory License in India
The State government is authorized by Section 6 of the Act to oversee the factories Act's licensing and registration regulations.
- A factory description or business strategy must be filed to the relevant state government entity.
- If any plant or machinery is in operational condition, there are no fees associated with its expansion or replacement.
The Indian government has established a straightforward procedure for obtaining a factory license. For hazardous and non-hazardous factory licenses, the procedure is different. The following procedures must be followed in order to receive a factory license:
Making an application.
submission of records.
Requisite fees are paid.
Acquiring a license
The applicant must obtain the appropriate authorities' approval of the factory plan prior to applying. After receiving this approval, the applicant can begin the process of acquiring a factory license.
Renewal of Factory Licenses
Since a factory license is only good for a year, it should be renewed before then. The license renewal procedure is identical to the registration procedure. The following documents are needed to renew a factory license:
A minimum of 10% of the license charge has been set aside as a penalty in the event that the factory license renewal is not completed, and this amount will rise by 10% each month.
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Procedure for Voluntary Factory License Suspension
In case the licensee needs to surrender the factory license to the government, the below-mentioned process should be followed-
1. Submit a suspension request along with the justification.
2. Include the necessary paperwork.
3. Please submit the employees' information and complaints.
4. The authority will take the required actions to suspend a factory license after the application is received.
Frequently Asked Questions (FAQs)
All Indian states, as well as all manufacturing facilities and operations, are subject to the Act. In certain situations, factories owned by the federal or state governments are also covered by the Act.
A factory license may be granted to a manufacturing facility that employs 10 or more people with the help of electricity or 20 or more people without it.
For one year, the license is still in effect.
TOR is calculated by dividing the actual time of completion by the time of completion of the task outlined in the agreement plus an additional extended length of time without charging for it.
Any class in the Buildings & Roads category or Horticulture can consider an applicant without job experience as long as they meet the requirements for financial soundness, provided they have a valid PPO from the government.
An occupier's fundamental duties include ensuring
• Employee well-being; • Health conditions; • Workplace conditions; • Wages,
It is not possible to obtain a factory license in a residential neighborhood.
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