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What are the requirements under factory license?


With the motive of improving the conditions of the children working in factories, The Factories Act 1948 came into existence. In order to save minor children from working in factories and provide their right to work, this act came as a savior which says “no child can work under the age of nine”.

Let us dive more into the topic to know “what are the requirements under factory license”. Starting with the basic of the factory license by learning what does the term “factory” includes.

What do you mean by “factory” under factories act ?

The term “factory” means any premises including the precincts thereof-

  1. where 10 or more workers are working, or were working on any day of the preceding twelve months, and in any parts of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
  2. where 20 or more workers are working, or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on-

but does not include a mine subject to the operation of Mines Act or mobile unit belonging to the armed forces of the Union, railway shed or a hotel, restaurant or eating place.

Who is required to obtain factory license?

Under factory license, the person who is required to obtain factory license is called by a special name known to be “occupier”. Thus, as per the Factories Act, occupier of a factory means a person who has the ultimate power or control over the affairs of the factory.

However, in the case of a firm or other association of individuals, any of the individual partner or members thereof shall be deemed to be the occupier.

Whereas in the case of a company, any of the directors shall be deemed to be the occupier.

If we talk about a factory owned or controlled by the Central Government or any State Government, or any local authority, the person or person appointed to manage the affairs of the factory by the Central Government, the State Government or the local authority as the case may be shall be deemed to be the occupier.

General duties of the occupier

There are some of the duties that are obligatory for every occupier of the factory to adhere to in order to comply the provision as stated in the factories act. Answering to question “what are the requirements under factory license”, here comes the duties of the occupier, namely:-

  1. Every occupier must ensure, so far as is reasonably practicable, the health, safety and welfare of all workers while working in the factory.
  2. The occupier is responsible to:-
  3. Ensure all the provisions and maintenance of plant and system of work in the factory are safe and without risks to health;
  4. Make proper arrangements in the factory for ensuring safety and absence of risks to health in connection with the use, handling, storage and transport of articles and substances;
  5. Comply with the provisions of such information, instruction, training and supervision as are necessary to ensure the health and safety of all workers at work;
  6. the maintenance of all places of work in the factory in a condition that is safe and without risks to health and the provision and maintenance of such means of access to, and egress from, such places as are safe and without such risks;
  7. the provision, maintenance or monitoring of such working environment in the factory for the workers that is safe, without risks to health and adequate as regards facilities and arrangements for their welfare at work.
  8. In addition to it, every occupier shall prepare, revise, a written statement of the general policy with respect to health and safety of the workers at work.

Checklist of all the requirements under factory license

Before obtaining a license to start with a factory and its operations, prior approval from the state government where the factory is required to be location shall be required to take by the occupier of the factory.

  1. Notice by occupier

So, as per the requirement under factories act, every occupier shall, at least fifteen days before he begins to occupy or use the premise of factory, send to the Chief Inspector a written notice containing-

  • Name and situation of factory
  • Name and address of occupier
  • Address to which communications relating to the factory
  • Nature of the manufacturing process
  • Name of the manager of the factory
  • Number of workers to be employed in the factory
  • Average number of employees employed during the last twelve months
  1. Where a new manager is appointed

In a factory whenever a new manager is appointed, the occupier shall send a notice in writing to the Chief Inspector within seven days from the date on which such person takes the charge.

Moreover, where there is no person appointed as manager of the factory to manage the affairs and operations of factory then the occupier of the factory himself shall be deemed to be the manager of the factory.

  1. Prohibition of women and children

The special requirement includes that every occupier must make sure that no women or child is employed in any part of the factory for pressing cotton where cotton opener is at work. Provided that if the feed-end of a cotton-opener is in a room separated from the delivery end by a partition extending to the roof or to such height as the Inspector may in any particular case specify in writing, women and children may be employed on the side of the partition where the feed-end is situated.

  1. Legal requirement in factory

As per the applicability of The Factories Act 1948, working hours are restricted to 9 hours per week, with a particular provision for women. The timings for women working in factories is after 7.a.m and before 6 p.m.

From where to apply factory license in India?

Applying for a factory license in India is possible with EAdvisors Infotech LLP. Consult EAdvisors and get your Factory License in just few days. Send us the desired set of documents and you are good to go.

Here are the documents you need to provide us to start with the process of factory license, namely:-

  1. ID proof of Occupier and Manager.
  2. List of Partners/Directors with their residential address.
  3. NOC from other partners or Board Resolution by Directors for the nomination of occupier as per sections 2(n) and 7 of the Factories Act, 1948.
  4. Proof/supporting documents of Occupier as Director/ Partner/ Proprietor of the factory.
  5. Existing building plan in PDF format as per Rule 3A of the Delhi Factories Rules, 1950.
  6. Latest electricity bill as a proof of sanctioned load of electricity.
  7. Proof of occupancy (copy of rent agreement/ownership proof i.e. conveyance deed).
  8. Flow chart of the manufacturing process.
  9. List of raw materials used in the manufacturing process.
  10. List of machineries installed in the premises.
  11. Such other particulars as the Chief Inspector/Director (ISH) may require.

Also Read

Things to know before opting for factory license

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