To protect workers and ensure that the owner maintains a healthy environment, the government introduced the Factory Act of 1948. In accordance with the 1948 Act, all factory owners are required to register their premises with the local authorities before starting business. A Factory License serves as a permit issued by the authorities to carry out manufacturing activities. The Department of Factories and Boilers issues a Factory License.  The Department of Factories and Boilers document must oversee the health, safety and welfare of workers. In addition, a factory registering under the Factory Act 1948 must obtain planning permission from the Department of Labour and Employment before being covered for factory registration. In this write-up, we will discuss about a complete overview of documents required for Factory License.

What is Factory?

As per section 2(m) of the Factories Act, 1948, factory is any premises where ten or more workers are working or they were working on the ant preceding twelve months, or it also includes any part of which a manufacturing process is being carried on with the aid of the power. It also includes any premises where twenty or more workers are working or they were working on the ant preceding twelve months, or it also includes any part of which a manufacturing process is being carried on with the aid of the power. There are certain things which are not considered as factory as per the Factories Act, 1948, these things are given below-

1. Mines 
2. Mobile units belongs to the Armed Forces of the Union
3. A shed which is run by the railways
4. Hotel
5. Restaurants
6. Eating House

Types of Factories 

The Factories are broadly divided into two sub categories depending on the process-

1. Hazardous 

Hazardous factories mean such kind of factories whose manufacturing process is hazardous process. As per the section 2(cb) of the Factories Act, 1948 hazardous process means any process or activity in relation to an industry specified in the first schedule where unless special care has taken, raw materials used therein or the intermediate or finished products, bye-products, wastes and effluents thereof would cause harm to the person engaged or working in that factory. Also if such kind of waste or effluents if cause harm to the environment and creating pollution. 

2. Non- Hazardous  

Non-Hazardous Factories are the one whose manufacturing process does not include hazardous process. It simply means that the waste or effluents of the factory does not create any harm to the workers works there or to the environment. 

What is Factory License?

Permission taken by the government for the manufacturing on a particular place or city is called Factory License. This is basically a kind of Permission given by the authorities about how to work, what to do and what not to do, how to treat the workers and also helps government on keeping the eyes on the various activities of the factory owners. Factory License can also help the government to provide security to the workers who are working in the factories. 

Documents Required for Factory License

There is need of different types of documents on the different stages; the list of some of such documents is given below- 

Documents Required for the Approval of Site Plan

• Form 1 (Particular of Room in The Factory)
• Questionnaire for Form-1
• Certificate for Stability
• NOC Fire
• UPPCB NOC
• Diagram of process flow
• NOC Local Body/Local Authority
• NOC The Explosive Department
• NOC Of Others
• Copy of Building Drawing
• NOC Electrical Safety
• Proof of ownership of factory premises
• Site notification
• Article of the Memorandum
• Directors’ List
• Resolution on the declaration of occupier
• Report on safety
• Emergency Plan on-site
• Policy on Health and Safety

Documents Required to Register

• Photography of the establishment
• Proof of identity
• DIN card or PAN card
• Treasury Challenge/Bank Name

Required Documents for Renewal Purpose 

• Form – 4
• Form-4B Form
• Treasury or Challenge Online

Guidelines that Factories must be Adhered  

As per the Factory Act, 1948^[1], any factory needs to obtain a Factory License must adhered with the guidelines given below- 

• 10 or more workers are must be involved in manufacturing activity with the aid of power on any day of the preceding 12 months. It means there must be minimum 10 workers and also the consumer power. 
• 20 or more workers are involved in manufacturing activity without the aid of power on any day of the preceding 12 months. It means when we are talking about without power minimum number of workers must be 20. 

Conclusion – Documents Required for Factory License

In India, the provisions of the Factories Act 1948 regulate the registration of factories. The Department of Labour and Employment administers the law. The Factory Act also regulates working conditions in factories and addresses various issues related to the health, safety, efficiency and welfare of people in the workplace. If you wish to set up a factory in India you must comply with the rules and regulations of the Factories Act of 1948. If you have any query regarding Factory License documents or anything other than documents, you can contact Bizadvisors.

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