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Factory Registration

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What is Factory Licence ?

Over time, the manufacturing industry has seen a steady boom in its growth throughout the country. Several schemes such as ‘Make in India’ have given an added spurt to this industry, which is now expected to be the 5th largest manufacturing country world over by the end of this year. To be able to safeguard the workers, and to affirm that factory owners are giving them a healthy and sound work environment, the Indian government has introduced the Factory Act 1948 which mandates that all factory owners should have their properties registered with the concerned authorities. The Factories and Boilers department is the designated body that ensures that workers are well taken care of.

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    The Process to apply for Factory License

    Pre-requisite

    Pollution License from Haryana Pollution Control Board

    Documents required for registrations:

    • Authorized person Photograph and Signature
    • Authorized person ID and Address proof
    • MOA/AOA/COI in case of company form of business OR Partnership Agreement in case of LLP/Partnership firm
    • List of raw material, by-products along with the quantity
    • Business address proof- electricity bill/load sanction letter
    • Process flow chart
    • Site Plan (Map)
    • Pollution license

    Advantages of Getting a Factory License

    Obtaining a factory license is beneficial to all the employees working at such establishments as it ensures safety and well-being of these workers. Some of these advantages include;

    Legal Benefits

    The factory owner would be eligible to avail legal benefits provided by the government, depending on the scheme chosen.

    Specified Provisions for Employees

    Female and young workers are looked after under this in regards to salaries, health and safety, work conditions and the number of hours they put in.

    Additional Matters

    Holidays, leaves, number of hours, wages, enlisting of women, enlisting children, hiring, firing and many other factors are taken care of when one gets the factory license.

    Productivity Enhancement

    Complying under the guidelines set by the Factories Act 1948 further enhances the productivity of all the workers.

    Equality

    The license ensures that every employee under the establishment gets equal rights and treatment.

    Frequently Asked Questions (FAQs)

    How can I apply for a renewal of my Factory License?
    An application for renewal is required to be made to the Directorate of Industrial Safety and Health, Labour Department, Government of NCT of Delhi.
    Can the license be renewed for more than one year at a go?
    The factory owner can get the license renewed for one, five, or ten years at a time.
    In case the application for renewal is not submitted on time, will there be a late fee?
    A late fee at 25% is payable, which is charged after the application for renewal is submitted. The date of submission of the application will be noted to calculate the late fee.
    Who is eligible to apply for a Factory License?
    Every manufacturing unit is eligible to obtain a Factory License.
    Can a Factory License be obtained in a residential area?
    No, Factory Licenses will not be granted in residential areas.
    What is the validity of a Factory License?
    A Factory License is valid for one year.
    What is the minimum period before a factory must compulsorily apply for a license from the authority?
    The government has clarified that a license must be obtained at least 15 days prior to functional start-up of the factory.
    What are the two types of Factories broadly classified as?
    Factories are broadly divided into two categories: Hazardous and Non-Hazardous.
    How is the Factory License fee calculated?
    The factory license fee is calculated on the basis of no. of workers employed and installed power in HP/KW of the machinery.
    Which Factories are considered to be hazardous?
    Factories are considered to be hazardous as per the First Schedule of the Factories Act, 1948.
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