Sunday, September 22, 2024
Sunday, September 22, 2024

Registration and Licensing of Factories under Factories Act 1948

by Sachi Chaudhary
registration and licensing of factories

Throughout the long term, fabricating has arisen as one of the significant development areas in India. The presentation of plans like “Make in India” has given a sufficient lift to the area to a level that India is supposed to turn into the fifth biggest assembling country on the planet before the year 2020. The assembling site in India has developed from its previous phases of industrialisation to its ongoing period of worldwide seriousness, making it an extraordinary area for more up-to-date, more modest organisations to fabricate. 

You want to apply for licenses from the middle and state governments to set up factories in India. The arrangements of the Factories Act 1948 manage Factory Registration in our country. Factories Act addresses the functioning conditions in production lines and handles different issues concerning the well-being, security, proficiency, and prosperity of the people in working environments. This blog will teach you about the Registration and Licensing of Factories with Factory Registration in India.

Applicability Of Factories Act, 1948

The Factory Definition of 1948 is a significant work regulation in India that fundamentally directs production line working circumstances. It plans to guarantee labourers’ security, well-being, and government assistance in modern foundations. The Act applies to plants participating in assembling processes and specific other determined exercises. Here is an outline of the Registration and Licensing of Factories under the Factories Act of 1948:

  • Factory Definition: The Act characterises a production line as any premises where at least ten labourers are utilised, where assembling processes with power are continued, or where at least twenty specialists are utilised without involving management in making processes.
  • Materialness by Number of Laborers: If a manufacturing plant utilises at least ten labourers with power or at least twenty specialists without power, it falls under the domain of the Act.
  • Producing Cycles: The Act applies to premises where assembling processes happen. These cycles can incorporate gathering and fixing; from there, the sky is the limit. It likewise applies to any premises where business related to printing papers is continued.
  • Power Use: Regardless of whether there are less than ten labourers, the Act will apply if power is utilised in assembling.
  • Notification and Registration: The occupier of a manufacturing plant should inform the neighbourhood government and enrol the industrial facility according to the Act’s arrangements.
  • Exemptions: The Act gives a few exceptions to explicit production lines and cycles. For instance, plants where just relatives are utilised, and those who participated in occasional work might be excluded from explicit arrangements.
  • Responsibilities: The Act obligates plant proprietors or occupiers to guarantee labourers’ well-being, security, and government assistance. It covers working hours, leaves, cleanliness, well-being measures, etc.

Definition Of Factory As Per Factories Act, 1948

The  Factories Act 1948 is an Indian regulation that administers production line working circumstances. As per this act, a factory is characterised as:

  • Where at least ten than ten labourers are working or were dealing with any day of the former a year, and in any piece of which an assembling power is being continued with the guide of energy, or is commonly so continued, or
  • At least twenty than twenty labourers are working or were dealing with any day of the former a year, and in any piece of which an assembling cycle is being continued without the guide of force or is commonly continued.

Objectives Of Factories Act, 1948

The Factories Act of 1948 is a significant regulation in India that directs and guarantees the government assistance and security of labourers in production lines. Its essential goals are as follows:

  • The Factories Act was consolidated in 1948 to manage the functioning circumstances in production lines, control well-being, security, government assistance, and yearly pass-on of assembly line labourers to guarantee sufficient security proportions of labourers utilised in industrial facilities.
  • Additionally, the  Act likewise makes arrangements regarding the work of ladies and youthful people, yearly leave with compensation, and so on.

The Procedure For Registration and Licensing of Factories in India

Each factory in India should submit to the principles and rules of the Factories Act of 1948. The first step towards laying out a manufacturing factory is the registration of the production line, and when the registration is finished, the government can benefit from the licenses. The following is the procedure to be followed for registration and Licensing of Factories in India:

  • A candidate needs to apply with properly filled-in Form No-2, a bunch of recommended records and charges endorsed by the proper head of Account in the shape of Treasury Chalan in the office of the Director of Factories & Boilers of his state.
  • After getting the application, the equivalent is examined by the concerned official.
  • Post investigation, assuming that the records are proper, it is handled for endorsement by the skilled Power.
  • If weaknesses are noticed, the candidate is approached to present the remedied application in a period-bound way.
  • When specialists get the remedy from the candidate, the application is handled in the document to get an endorsement from the Competent Authority.
  • After endorsement, a registration and Licensing of Factories declaration and a permit endorsed adequately by the Competent Authority are sent by post to the candidate with a cover letter.

Documents Required For Registration and Licensing of Factories

The documents expected for processing plant enrollment can fluctuate depending upon the nation and nearby guidelines; here is a list of standard reports frequently scheduled for registration and Licensing of Factories.

  • Form No-2 or Consolidated application structure for the foundation of industries in form 1AA.
  • Development culmination report from the board according to the endorsed plan.
  • Imperative Expense looks like treasury Chalan in the appropriate Head of Record according to the charge structure advised now and then.
  • Resolution of Director/partners selecting one to go about as occupier under section 2(n) of the Factories Act.
  • Unique duplicate of Stability Certificate given by a perceived skilled individual.
  • Safety & Health Policy for 2(CB) and MAH classification factories and different factories are utilising at least 50 workers.

Compliance Checklist Under The Factories Act

The  Factories Act is a regulation that guarantees the well-being, security, and government assistance of labourers in India’s factories. To follow the Factories Act,  proprietors and supervisors must comply with different guidelines and necessities. The following is a consistent agenda under the Factories Act:

Licensing for Registration and Licensing of Factories.

The factory proprietor needs to take earlier authorisation from the State Government or the Chief Inspector recorded as a hard copy for the site on which the factory will be arranged.

Further, to get a permit, the occupier should send the notification under Section 7 of the  Act to the Chief Inspector at least 15 days before he starts to involve the reason as a factory containing the accompanying details:

  • Name and address of the Occupier.
  • Name and address of the factory.
  • Type of the manufacturing process to be carried out in the factory.
  • Name of the manager of the factory.
  • Number of workers likely to be employed.
  • Other prescribed particulars.

Working Hours Of Adults

As per the Factories Act of 1948, the representatives working in the factories would acquire the advantage of the accompanying guidelines:

  • No labourer should be allowed to work in a processing factory for over 48 hours weekly.
  • No specialist should be made to turn out constantly for ten days with no occasion.
  • If the specialist is denied any of week-after-week occasions, he should be permitted to take that occasion in that month or within the two months promptly following that month.
  • No grown-up specialist ought to be working in a day for over 9 hours.
  • The functioning hours of a grown-up specialist in a production line should be organised such that he only works for over 5 hours with some time off of thirty minutes.
  • If a labourer deals with the night shift, his hours after 12 should be included in the earlier day.

Penalties for Registration and Licensing of Factories Under Factories Act, 1948

The Factories Act 1948 is a significant work registration and Licensing of Factories in India that means to manage and guarantee the government assistance of labourers utilised in production lines. The Act sets down different arrangements connected with assembly line labourers’ well-being and working states. Punishments for resistance to the Act are determined in its collections, and they might fluctuate depending upon the nature and seriousness of the infringement. Here are a portion of the punishments under the Factories Act 1948: 

OffencePenalties
Violation of the provisions of the ActImprisonment for 2 years or fine up to Rs 1,00,000 or both
Continuation of violationRs 1000 per day
Violation of Chapter IV pertaining to safety or dangerous operationsNot less than Rs 25,000 in case of death Not less than Rs 5000 in case of serious injuries
Following violation of some provisionsImprisonment up to 3 years or fine not less than Rs 10,000 which may extend to Rs 2,00,000
Obstructing inspectorsImprisonment up to 6 months or fine up to Rs 10,000 or both
Wrongfully disclosing result related to results of analysisImprisonment up to 6 months or fine up to Rs 10,000  or both
Violation of the provisions of Sec. 41B, 41C and 41H related to compulsory disclosure of information by the occupier, specific responsibility of the occupier or right of workers to work in imminent dangerImprisonment up to 7 years with fine up to Rs 2, 00,000 and on continuation fine at Rs 5,000 per day. Imprisonment of 10 years when violation continues for one year.

Conclusion

The registration and licensing of factories under the Factories Act 1948 are essential to guarantee the security, well-being, and government assistance of modern labourers in India. By complying with these guidelines, factory owners satisfy their lawful commitments as well as add to the general development and improvement of the contemporary area. Both government specialists and factory owners must cooperate to implement these arrangements, making a more secure and helpful workplace for all. 

Leave a Comment

startupfino

Startupfino is one and only platform in India which is exclusively formed to support startups for their financial and legal matters. Startupfino is working in the ecosystem since a decade and is well equipped to handle the complexities in a startup faced by founders.  View More…

 

LetsGoLegal Advisory Private Limited

 

Learning Section

Contact Us

Mobile:   829-829-1011
Mail:       info@startupfino.com

Head Office

22, 2nd Floor Vaishali, Pitampura, Delhi 110034 


Gurgaon Office

880, Udhyog Vihar Phase-V, Gurugram, Haryana

 

Bangalore Office

Indiqube Sigma 3B 4th Floor Wing A2,7th C Main 3rd Block Koramangala Bangalore-560034

 

Faridabad Office

59/9, Faridabad, Haryana, 121006

 

© startupfino, 2024