Registration and Licensing of Factories under Factories Act 1948

The Factories Act of 1948 is concerned with the welfare, health, and safety of persons employed in factories. It establishes a framework under which the factories can be registered and licensed, laying the foundation for proper regulation to ensure compliance making it a safe working environment. Therefore, let us know about the registration and licensing of factories under Factories Act 1948.

“Factory” under the Factories Act of 1948

The Factories Act 1948 governs the conditions of the workers. According to this act, a factory is defined as:

• On any given day of the former year, 10 or more workers are working or were working, and in any part of which an aid of power is being continued with the guidance of energy, or is thus continued, or
• Every day of the former year, at least 20 workers are working or dealing with anything, and in every piece, an aid of power is carried out without the use of force or is often carried out.

What is the Factories Act of 1948?

The important labour legislation in India regulating the working conditions of the workers is the Factory Act of 1948. It provides government support, worker security, and worker well-being. Its primary objectives are as follows:

• In order to ensure security to workers employed in industrial facilities, the Factories Act came into force in 1948 to regulate the working conditions for the workers, maintains well-being, security, government support, and the annual pass-on of assembly line workers.
• Furthermore, the Act have the provisions for women's and youths' employment, paid annual leave, and other matters.

Compliance Checklist for Factory License

Before submitting an application for a factory license, the following must be completed:

• The factory building and premises 
• The fire, water, and pollution board's NOC (No Objection Certificate) for the factory layout plan. 
• Notification to the Chief Inspector

The factory owner must have the factory plan approved by the state labour department authorities before filing an application for a factory license. Regarding the plant location, the owners must get approval from the state government. Factory owners can apply for a factory license once the state government has approved the factory's site and plan.

Additionally, 15 days before engaging in any activity or accessing the factory site, they need to give the chief inspector a legal notice that includes the following details:

• Address and name of the occupier
• The factory's name and address
• Name of the factory's manager
• The number of employees that will be employed
• The kind of production process that the factory will use
• The total rated horsepower that the factory has installed or plans to install
• Any more information that is necessary

Documents Required for Registration and Licensing of Factories

The important documents are as follow:

• For the establishment of factories in Form 1AA, use Form No-2, called the Combined Application Form.
• Management's construction completion report in accordance with the authorized plan.
• Payment in the form of Treasury Challan in the Head of Account in accordance with the periodically announced fee structure.
• A resolution by the director and partners allowing one to function as an occupier in accordance with Factories function section 2(n).
• Original copy of the Stability Certificate that has been issued by a qualified person.
• Safety and Health Policy for factories in the 2(CB) and MAH categories, and other factories with 50 or more employees.

Process of Registration and Licensing of Factories

The factories in India are regulated according to the provisions of the Factories Act of 1948, and unless the factories are registered under the Act, no factory can be established. After the registration is complete, the government will grant licenses. The process are:

• A properly completed Form No-2, a set of required documents, and the required fees must be submitted by the applicant to the appropriate head of Account in the form of Treasury Chalan at the state's Director of Factories & Boilers' office.
• The concerned officer reviews the application after receiving it.
• After review, if the documents are deemed accurate, they are sent to the appropriate authority for approval.
• In case of errors, the applicant is to be said to submit the rectified application in a certain period.
• The application is approved by sending the application to the Competent Authority upon receiving the rectifications made by the applicant.
• The approval is given to the applicant through postal email, together with a license and registration certificate signed by the Competent Authority.

Renewal of Factory License

• For the establishment of factories in Form 1AA, use Form No-2, called the Combined Application Form.
• Payment in the form of Treasury Challan in the Head of Account in accordance with the periodically announced fee structure.
• A copy of the original factory license.

Process for Renewal of Factory License

• In the office of the Director of Factories & Boilers of the state, an applicant must submit a properly completed Form No-2 together with the required fee to the appropriate head of Account in the form of Treasury Challan.
• The concerned officer reviews the application after receiving it.
• Following review, if the application's documentation is confirmed to be accurate, it is sent to the appropriate authority for approval.
• The applicant need to submit the updated application within a certain amount of time if any changes need to be made.
• The application is processed in a file for the Competent Authority's approval after authorities get the correct documents from the applicant.
• Following approval, the applicant receives a renewal copy of their license by postal mail along with a cover letter that has been properly signed by the Competent Authority.

Benefits of Factory License

• Municipal clearance for the facility's operations is the factory license. Applying for these licenses will be beneficial. 
• Factory owners’ are at high risk if they don't have this license. Additionally, it shields owners from the penalties outlined in the Factories Act. 
• It makes sure that owners implement suitable safety protocols to enhance the well-being and health of their employees. 
• After getting a factory license, factory owners can also benefit from the government through several programs.

Conclusion

Factory registration and licensing under the Factories Act, 1948, helps in regulating the industrial operation, safety of the workers, and adherence to the laws. It is a legal duty for all occupiers and managers to understand and completely follow these steps towards building a safe workplace.