What is a Factory License?

 

  • The Parliament of India enacted a law called Factories Act, 1948 on 23rd September 1948, which came into effect on 1st April 1949. As per the provisions of this Act, the State Governments were empowered to make their own legislations regarding the registration, approval and licensing of factories.

  • The State Governments were to establish mechanisms under which a Government Department was to set up an office consisting of Factory Inspectors and Chief Factory Inspector who would regulate the setting of new factories and compliance requirements of existing factories as per Sec 6 of Factories Act (Approval, Licensing and Registration of Factories).

  • Any business activity involving manufacturing of articles comes under the definition of a factory and the business owner require a factory license just as a Hotel or a restaurant need a Health Trade License and a trader needs a trader license. All these licenses are issued by the respective Municipal Corporation of the area. 
  • Pan Card and Aadhar Card of authorized Person
  • GST/PAN card of Unit
  • CIN certificate for Pvt. Ltd Company
  • Rent Agreement/Property Papers
  • Electricity bill
  • Photograph of Establishment
  • Board Authorization Letter for Authorized person  

    • Other information required for a Factory License online application are:

    • Mobile number and Email Id of the Authorized Person
    • Nature of Work
    • Number of Workers and Employees

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