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Factory License

Before beginning operations, Gujarati manufacturing owners must register their property with the local regulatory body. The requirements of the Factories Act, 1948 govern the registration of factories in India. A factory license is a permit given by the state's chief inspector of factories to engage in industrial activities. This article examines the process for getting a manufacturing licence in Gujarat.

1948 Factories Act

The Labour and Employment Department must approve a plant's building plan before it can register as a factory, according to the Factories Act of 1948. To guarantee worker safety, factory license are registered and renewed under the Factories Act of 1948. The Department regularly takes returns from those businesses that come under different acts and keeps a record of each factory's compliance with the Factories Act, 1948's requirements involving its employees, electricity use, and chemical usage.

The Factories Act of 1948 was written to guarantee the working conditions in factories, to control health, safety, welfare, and yearly leave, and to implement specific legislation for those who work in factories.

Documents Required

Documents required for a Gujarat factory registration is explained in detail in below:

  • Form No. 3
  • Original Licence
  • Treasury Challan in original
  • Stability Certificate duly signed by the Chartered Engineer/Chartered Architect.
  • A resolution passed by Board of Directors
  • Treasury challan for deposit of registration fee for the factory.
  • List of Directors and Partners
  • Copy of partnership deed duly attested by Magistrate
  • In case of proprietorship concern, details of the proprietor are required to be given through declaration which is attested either by Magistrate or by Notary.
  • Copy of power sanction.

Documents Required for the Change of Occupier

An amount of Rs.100/- has to be deposited as an amendment fee if there is a change of occupier. The following certificates are required to be submitted if there is a change of occupier.
In case of Proprietorship concern
  • Declaration about the proprietor and the occupier.
  • In case of Partnership concern
  • List of partners
  • Copy of partnership deed
  • A resolution passed by partners in which one of partner has been appointed as an occupier.
  • In case of a company
  • List of Directors
  • A resolution passed by Board of Directors in which one of director has been appointed as an occupier.
  • Documents Required for Change in the Factory Name
    If there is a change in the name of the factory, then Rs.100/- is to be deposited as an amendment fee. The following certificates are required to be submitted if there is a change in the name of the factory.
    • Certificate from Registrar of Companies regarding change of name.

    • Memorandum and Article of Association of the new company

    • List of Directors (in case of a company).

    • A resolution passed by Board of Director in which one of Director has been appointed as an occupier.

    • Certificate from Registrar of the firm regarding the change of name.

    • List of Partners (in case of the firm).

    • Copy of partnership deed

    • A resolution passed by partners in which one of partner has been appointed as an occupier.

    Documents Required for the Renewal of License

    • Original license for endorsement of renewal

    • Process flowchart

    • Form No. 3 duly filled up and complete in all aspects

    • Treasury Challan in original regarding the deposit of renewal fee

    Note: All the documents are required to be signed by occupier (proprietor, partner or director)

    Applicable Fee

    Fee Schedule for Licensing & Registration of Factories for one year is tabulated below

    The quantity of B.H.P. Installed on any one day of the year.

    Maximum Number of workers to be hired on any day during the particular year

    Up to 20

    From 21 to 50

    From 51 to 100

    From 101 to 250

    From 251 to 500

    From 501 to 1000

    From 1001 to 2000

    From 2001 to 5000

    From above 5000

    01

    02

    03

    04

    05

    06

    07

    08

    09

    10

    Fee Applicable

    nil

    Rs.176

    Rs.352

    Rs.528

    Rs.1056

    Rs.2200

    Rs.3520

    Rs.7040

    Rs.10560

    Rs.14080

    Up to 10 Horsepower

    Rs. 352

    Rs. 528

    Rs. 704

    Rs. 1408

    Rs. 2640

    Rs. 5280

    Rs. 10560

    Rs. 14080

    Rs. 17600

    Above 10 Horsepower but up to 50 Horsepower

    Rs. 528

    Rs. 704

    Rs. 1056

    Rs. 2200

    Rs. 3520

    Rs. 7040

    Rs. 14080

    Rs. 17600

    Rs. 21120

    Above 50 Horsepower but up to 100 Horsepower

    Rs. 800

    Rs. 1056

    Rs. 1760

    Rs. 3080

    Rs. 5280

    Rs. 10560

    Rs. 17600

    Rs. 21120

    Rs. 24640

    Above 100 Horsepower but up to 250 Horsepower

    Rs. 1408

    Rs. 1760

    Rs. 2816

    Rs. 3520

    Rs. 7040

    Rs. 14080

    Rs. 21120

    Rs. 24640

    Rs. 38160

    Above 250 Horsepower but up to 500 Horsepower

    Rs. 1760

    Rs. 2640

    Rs. 3250

    Rs. 7040

    Rs. 10560

    Rs. 17600

    Rs. 24640

    Rs. 28160

    Rs. 31680

    Above 500 Horsepower but up to 1000 Horsepower

    Rs. 2200

    Rs. 3080

    Rs. 7040

    Rs. 10560

    Rs. 14080

    Rs. 21120

    Rs. 28160

    Rs. 31680

    Rs. 35200

    Above 1000 Horsepower but up to 2000 Horsepower

    Rs. 3250

    Rs. 7040

    Rs. 10560

    Rs. 14080

    Rs. 17600

    Rs. 24640

    Rs. 31680

    Rs. 35200

    Rs. 39600

    Above 2000 Horsepower but up to 5000 Horsepower

    Rs. 7040

    Rs. 10560

    Rs. 14080

    Rs. 17600

    Rs. 24640

    Rs. 31680

    Rs. 35200

    Rs. 39600

    Rs. 45760

    Above 5000 Horsepower

    Rs. 14080

    Rs. 15840

    Rs. 17600

    Rs. 22000

    Rs. 24600

    Rs. 35200

    Rs. 40480

    Rs. 44000

    Rs. 51920

    Offline Factory Licence Application Process

    The processes for submitting an online application for the certificate for non-creamy layer are as follows:
    Step 1: A Certificate of Stability given by the Competent Person in Form No. I-A has been provided before to applying for the licence. This certificate must be authorised by the Director / Joint Director Industrial Safety and Health.

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