Factory License: An Overview For MSME’s

Factory License is an Important Certification or say authorization granted to MSME’s or factories to Commence Manufacturing operations. The Factory License Registration Process is Governed by Factory Act 1948 and issued by the local department of factories and boilers. It is used to regulate the safety conditions of workers and laborers working in the factories. Factory Registration is an obligatory Certification required by all Manufacturing units from their Respective local state authorities.

Therefore, if you are a new startup or Small Factory owner venturing into the manufacturing sector of any kind it is obligatory by law to comply with factory act 1948 and obtain a mandatory authorization to start manufacturing.

We at Monitrix can help you get your Factory License online without any hassle and paperwork at competitive Pricing.

                        What is Factory License?

Factory Registration Certificate or Factory License is an Authorization given to factories operating in their respective states. The objective of factory registration is to regulate the working conditions and safety of workers in the factory. Factory Registration is a very crucial authorization granted by local authorities in their respective states.

             Eligibility For Obtaining Factory License

Criteria for Factory License Registration is classified into 2 categories

• Factories having 10 or more workers with consumer power
• Factories having 20 or more workers without consumer power

Documents Required For Factory License Certification

These are the List of Documents Required to attach during the filling with local authorities for Factory License Registration.

• Directors or Partners
• Owner’s ID and Identity Proof
• PAN Card Details of Business
• NOC From Water & Fire Department
• Tax Receipt of Municipal Corporation
• Address Proof of Factory such as utility bills
• Partnership Deed or Board resolution as applicable
• Information Regarding Equipments and Raw Material
• Consent to establish & Operate From State Pollution Control Board

           Factory License Cost : What is the Fee for Factory License?

The Professional fees For factory License starts from INR 49,999/- only. Thereafter applicants are also required to pay Govt fee for certification. The govt fee for factory license varies on the basis of eligibility criteria and their respective states.

Note: The aforementioned Fees is exclusive of GST.

                   Factory License Renewal : Overview

Factory License are valid upto the time frame of 1-5 years. However the renewal date of the factory license varies from state to state. However the owners are required to apply prior to the due date in order to keep manufacturing continuing without any hindrance.

           Compliances After Factory License Certification

These are the following Statutory Compliances required to be fulfill by the owner of the factory.

• Health Provisions
• Safety Provisions
• Welfare Provisions
• Working Hours of Adults
• Annual Leave and Wages
• Employment of Young Persons

                  Benefits of Factory License Registration

In India, a Factory License is a legal requirement under the Factories Act, 1948, for establishments engaged in manufacturing processes and certain other specify activities. Obtaining a Factory License offers several benefits to both the government and the business owner:

• Legal Compliance: Obtaining a Factory License ensures that the business complies with the legal requirements outlined in the Factories Act. This so helps in avoiding legal issues and penalties for non-compliance.
• Safety and Health Standards: The Factories Act mandates certain safety and health standards for factories. Obtaining a Factory License ensures that the business adheres to these standards, providing a safe and healthy working environment for employees.
• Regulatory Oversight: The issuance of a Factory License involves inspection and approval from the Factory Inspectorate. This regulatory oversight helps in maintaining and improving workplace conditions.
• Employee Welfare: The Factories Act includes provisions related to working hours, leave policies, and welfare amenities for workers. By obtaining a Factory License, a business demonstrates its commitment to the welfare of its employees.
• Insurance Coverage: Some insurance companies may require a valid Factory License as a prerequisite for providing insurance coverage to the factory. This can be crucial in mitigating financial risks associated with accidents or other unforeseen events.

                        Montrix : Your Registration Partner

We at Monitrix understand the importance & impact of having timely authorization from authority to commence your business as soon as possible. With our team of experts you get your factory License without any hassle and delay.

                                    Conclusion

Factory License is an important certification require by MSME’s manufacturing units in India. And It takes around 30 working days to complete the process and get authorization from the respective local authorities as the factories  register only within the state it is operating. The factory license works as a binding force that regulates the working and safety of workers operating in a factory. Therefore it is mandatory for owners to register their factory with authorities at least 15 days prior to commencement of business.

Why Monitrix?

At Monitrix, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, because minimize risks, and optimize operations for maximum efficiency and profitability.