Gujarat Factory License : Registration of Factories

Updated on August 20, 2024 01:16:22 PM

Factory License Registration in Gujarat is a mandatory certification required by manufacturing units, SMEs and Factories in Gujarat. The process of factory registration is governed by factories Act 1948 & issued by the local department of factories and boilers. It is to regulate the safety conditions of workers & laborers working in the factories.

Therefore, if you are a new startup or Small Factory owner venturing into the manufacturing sector of any kind it is obligatory by law to comply with factory act 1948 and obtain a mandatory authorization to start manufacturing.

Professional Utilities can help you get your Factory License in Gujarat without any hassle. Our team of experts can guide you through every aspect of the licensing process ensuring smooth and easy application fulfillment with the licensing authority.

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What is Factory License Registration In Gujarat?

A Factory Registration Certificate is a license given to factories operating in Gujarat. The purpose of factory registration is to regulate the working conditions and safety of the workers in the factories. Factory Registration is a very important authorization granted by local authorities depending upon the eligibility.

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Eligibility For Obtaining Factory License In Gujarat

Factory license registration criteria are classified under the following categories.

  • Factories with 10 or more workers, works with power.
  • Factories with 20 or more workers that do not have access to power.
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Documents Required For Factory License In Gujarat

These are the List of Documents Required to attach during the filling for Factory License Registration in Gujarat.

  • Form-3
  • Stability Certificate
  • Resolution passed by the board of directors in case of a company
  • List of directors and partners respectively
  • Copy of partnership deed in case of a partnership firm
  • Copy of power sanction
  • Consent to operate from GSPCB (Goa State Pollution Control Board)
  • Consent to establish from GSPCB (Goa State Pollution Control Board)
  • Plan approval certificate
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Factory License Registration

Process For Factory License Registration is as Follows : Applicants are required to

Step 1: Approval for factory building plan:

Before gathering the requisite documents for the set-up of a factory, approval for a factory building license from the concerned authority is essential. To approve your factory establishment, you must draft your factory building plan according to the regulations and standards.

Step 2: Documentation:

Upon receiving the duly approved factory building plan, your next step is to gather all the requisite documents according to the type of organization you want to establish. For this, an applicant should make sure that all the information, you provide in the document is complete and accurate without filling in any discrepancies.

Step 3: Payment of fees for application:

After submitting all the necessary documents, you have to make a payment for the application you’ve filled out as per the guidelines provided by the relevant authority. You have to ensure that you’ve successfully received proof that you’ve paid for the concerned application.

Step 4: Verification of documents:

The concerned authority will verify the originality, accuracy, and information of the documents upon receiving the payment for the application. The authority would rather review the application and the documents required.

Step 5: Inspection by the Chief Inspector of Factories:

The Chief Inspector shall schedule the date for visiting the factory premises. You may need to create transparency before investigators can verify compliance and safety standards. After investigating, the inspector will make a report on your factory based on their observations and true findings.

Step 6: Issuance of certificate:

Based on the remarks made in the report by the investigators, the authorities will decide whether your factory would be a better fit for the license. The applicant would be notified of the decision if the permit had been issued. Otherwise, the applicant needs to take corrective measures and reapply.

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What is the Fee for Factory Registration In Gujarat?

The professional fee for a factory license starts at only INR 49,999. Applicants must also pay a government fee for certification after that.

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 51 to 100 101 to 250 251 to 500 501 to 1000 1001 to 2000 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. 1056 Rs. 704 Rs. 1408 Rs. 2640 Rs. 5280 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. 26240
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
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How To Renew Factory License In Gujarat?

Factory licenses are valid for one to five years, Factory owners must apply for renewal before the due date to ensure that production continues uninterrupted.

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Compliances After Factory License Registration In Gujarat

The following are the statutory compliances that the factory owner must meet:

  • Health benefits
  • Safety measures
  • Welfare programs
  • Employment of minors
  • Working hours for adults
  • Annual leave and wages
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Benefits of Factory License Registration In Gujarat

In Gujarat, a Factory License is a legal requirement under the Factories Act, 1948, for establishments engaged in manufacturing processes and certain other specified activities. Obtaining a Factory License offers several benefits to both the government and the business owner:

  • Legal Compliance: Obtaining a Factory License ensures that the business complies with the legal requirements outlined in the Factories Act. This helps in avoiding legal issues and penalties for non-compliance.
  • Safety and Health Standards: The Factories Act mandates certain safety and health standards for factories. Obtaining a Factory License ensures that the business adheres to these standards, providing a safe and healthy working environment for employees.
  • Regulatory Oversight: The issuance of a Factory License involves inspection and approval from the Factory Inspectorate. This regulatory oversight helps in maintaining and improving workplace conditions.
  • Employee Welfare: The Factories Act includes provisions related to working hours, leave policies, and welfare amenities for workers. By obtaining a Factory License, a business demonstrates its commitment to the welfare of its employees.
  • Insurance Coverage: Some insurance companies may require a valid Factory License as a prerequisite for providing insurance coverage to the factory. This can be crucial in mitigating financial risks associated with accidents or other unforeseen events.
  • Government Monitoring: A Factory License facilitates government monitoring of industrial activities. This is essential for planning and implementing policies related to industrial development, labor welfare, and environmental protection.
  • Access to Government Incentives: In some cases, having a valid Factory License may make the business eligible for government incentives, subsidies, or support programs aimed at promoting industrial growth and compliance with regulations.
  • Credibility: Possessing a Factory License enhances the credibility of the business. It signals to customers, suppliers, and other stakeholders that the business operates within the legal framework and is committed to maintaining high standards.
  • Environmental Compliance: Factories are often required to adhere to environmental norms. The Factory License process may include checks to ensure that the industrial activities do not adversely impact the environment, promoting sustainable and responsible business practices.
  • Facilitates Expansion: When a business plans to expand its manufacturing operations, having a valid Factory License is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.
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Professional Utilities : Your Registration Partner

At Professional Utilities, we understand the importance of obtaining timely authorization from the authorities to start your business as soon as possible. Our team of experts can help you get your factory license without any hassle or delay.

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Conclusion

Factory license is a vital certification required by manufacturers in Gujarat. The process takes around 30 working days to complete to get authorization from MCD. The factory license serves as a binding force that regulates the working and safety of factory workers. As a result, it is mandatory for owners to register their factory with the authorities at least 15 days before starting business.

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Factory license registration In Other States

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Why Professional Utilities?

At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.

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Frequently Asked Questions

Is factory license mandatory in Gujarat?

The Factory License is an obligatory certification in Gujarat and is required by all the manufacturing units operating in the state. The factory registration certification is issued by the local authorities in their respective states

How to get a Factory License in Gujarat?

You can get your factory license registration with us in just a few clicks

  • Contact us
  • Provide Details & Documents
  • Issuance of Factory Registration
What are the fees for factory license certification in Gujarat?

The Professional Fees for Factory License Registration with Professional Utilities starts from INR 49,999/- only.

Renewal and Validity of Factory License in Gujarat?

The factory license is valid up to the time frame of 1-5 years. Factory Owners are required to renew their license prior to their due date.

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