Factory license – Procedure, renewal, online registration

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In recent years, especially after the COVID-19 pandemic, India has seen a sharp increase in the emergence of new businesses. With innovative ideas, people from diverse backgrounds have transformed lives with low investments. To encourage and support creative minds, some non-bank financial companies offer MSME loans young businesses.

Previously, business owners had to face long and confusing procedures to register their businesses or obtain licenses. From 2020, the government has simplified these procedures. Some financial companies also offer loans up to 7.5 lakhs in just three days.

Most business owners are unaware of these procedures and get caught up in legal issues. Therefore, if you are planning to start a manufacturing MSME, here are some essentials you should know:

If your business investment and turnover do not exceed Rs. 50 cr., And Rs. 25 cr., Respectively, your business falls under MSME. As a new business owner of an MSME, the first thing you need to do is register with Udyog Aadhar.

Online registration of MSMEs is an important step taken by the Indian government to simplify the registration process. Owners thus benefit from greater clarity and security while benefiting from the many advantages.

From July 2020, Udyog Aadhar and the Udyam recording have become one, removing your confusion. At the end of the registration process, your business will receive a unique 12-digit identification number.

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Procedure

  1. Visit the official Indian government website for Udyog Aadhar registration: https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
  2. Create a user profile on the portal.
  3. Fill out the request form.
  4. Download the required documents: proof of identity, bank details and other personal data.
  5. Once all the fields are filled in, you will get the Udyog Aadhar.

Note that this is a one-time procedure and you will not have to renew the registration. This portal offers a free process and is not fooled by scammers asking for fees.

Factory license procedure

The Factories Act 1948 requires factories to conduct manufacturing activities only after obtaining a factory license. Manufacturing without it is punishable by law.

Different states follow different procedures for granting factory licenses. Although the Factories Act of 1948 applies to all regions of India, the list of documents and the authorities involved vary from region to region.

The occupants can either meet personally with the authority and fill out the form, or apply for the license digitally.

Offline procedure:

  1. Meet the local inspector and complete the form accurately.
  2. Attach all the required documents according to the inspector’s instructions.
  3. Double-check the information, sign the form, and send it in advance for inspection.
  4. Affected officers will check your documents and, if there are no discrepancies, your request will be approved.

Online procedure:

The licensing website is different for each state. Here are the official state websites you need to visit to get the factory license:

  1. Visit the website for the state where you will be establishing the plant.
  2. Create your user profile on the website.
  3. Provide occupant details and the correct information about the service you wish to provide.
  4. Complete the required application form completely and accurately.
  5. Upload all mandatory documents to the portal in the required format.
  6. Double-check the information, sign the form and download the request.
  7. Pay registration and license fees online. You will not be refunded once payment has been made.
  8. The authorities inspect your request. If there are no discrepancies, the request will be submitted for approval.

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Documents required for approval

Here is the list of documents that you will generally need to obtain the factory license for hazardous or non-hazardous units:

  • Proof of identity with photo of the applicant, bank details and tax receipt.

For partner companies:

  1. List of partners and their proof of address. Provide other related documents as instructed by the local authority.
  2. Partner NOCs

For public ltd./ private ltd. companies:

  1. List of appointed directors and their proof of residential address and some additional related documents as instructed by the local authority.
  2. Association Act
  • Evidence suggesting that the applicant is the director / partner of the company.

Proof of occupancy:

  1. Rental agreement
  2. Proof of ownership
  • NOC of the regional administrative authority.
  • Recent electricity bill / charge sanction letter.
  • Manufacturing information (format in accordance with national regulations):
  1. List of raw materials, by-products and final sales products with their expected quantity.
  2. List of machines
  3. Construction plan and arrangements for dealing with emergencies
  4. Diagram detailing the manufacturing process
  5. Employee health and safety policy

Please note that some documents vary from state to state. Hence, make sure you get the correct information and keep the files ready for smooth approval.

Once the authorities make sure that your request is good, they will grant you the license. You can download the issued certificate on the same website through your account.

If, however, they find flaws in your request, they will reject your request. In such a case, you can apply again after 30 days.

Factory license renewal

The factory license will be valid for five to ten years from the date of grant. Do not forget to submit your renewal request at least 15 days before the expiry date of your license.

Procedure

  1. Visit the website you used to apply for your factory license
  2. Log in with the account you used to request your factory license
  3. Choose the renewal option which will take you to an application form
  4. Fill in all the boxes with specific information. Sign the form
  5. Upload the required documents. The list of documents to renew is similar to the list given above. You will also need to download your old license.
  6. Pay the fees online.

The renewal request will undergo the same procedure as before.

Manufacturing is a promising sector if one sincerely follows government guidelines. Make sure you have your Udyog Aadhar number to enjoy various benefits.

Factory licenses are required by law and therefore must be completed with the help of the local inspector. If you have a new small business and need some financial help, you can always contact a promising NFBC. Hundreds of homeowners in India have benefited from the fast and hassle-free MSME loan that these companies offer.

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Factory license – FAQ

What does the factory license mean?

Authorization from the authorities to perform manufacturing functions is called a factory license. Plant licenses are issued by the Department of Plants and Boilers. The Factory and Boilerwork department is responsible for monitoring the health, safety and well-being of workers.

What licenses are required to start a factory in India?

Licenses or registration under FSSAI are divided into three categories: FSSAI Central License, FSSAI District License, and FSSAI Regional License. FSSAI State License. FSSAI state registration.

Who is required to register under the Factories Act?

The Delhi Factories Rules, 1950, require an occupant to obtain a license under Rule 4. The occupant must register on the Delhi e-District website using the “Citizen Registration Form” .

What is a factory registration certificate?

Factory Registration Certificates are authorization documents granting permission to regulate and conduct manufacturing activities in a particular area.

How can I apply for a factory license?

Plant layout approval is required before a license for the plant can be applied for. You must first request approval of the layout. Once approval is received, the license request can be submitted. You can ignore the notice if you have already submitted an accommodation request for the establishment.

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