An entrepreneur, intending to occupy a factory, is required to obtain License through registration of his factory from the Chief Inspector of Factories.
This blog is focused on factory setup at Assam.
What is the process of setting a factory licence?
Site Approval Application:
Here the site that you have selected will be sent to the Chief Inspector for approval.
This is to be done any day during the year for which licence is applied for.
It takes upto 90 Days.
Approval of Plan Application:
Once the site is approved, you need a approval for your plan (Factory outline, Blueprint, etc.)
Immediately after obtaining the grant of permission for the Site from the Government.
It takes upto 45 days
Registration and licensing
This is the final approval for start of commercial production once the setup for factory is ready
At least 15 (fifteen) days before the occupation or use any premises as a factory.
It takes upto 45 days
As this is a time taking process once proper planning is done with proper expert consultation, it can be done very soon.
What are the documents required?
1. For Site Approval:
Application to the Site Appraisal Committee specified under Rule 61G(3)(b) (15 copies along with following documents).
Land Documents (deed of ownership/ lease, indicating Dag No. and Patta No., Total Area, etc.).
Clearance certificate from State/ Central Govt. under I.F.Act,1927 and E.P.Act,1986.
No Objection Certificate from Local authority in respect of the location of such factory.
Site Plan presenting details as indicated in item 3.1(a)-(e) and 3.4 of the application format.
Flowchart of the buildings and installations, in the proposed site.
Report of soil test
Contour Map of the location.
Copy of detailed Project Report.
Copy of Proposed Health and Safety Policy.
Meteorological information relating to the site (ref: Item 6.1 to 6.4 of the application formats.
Process flow chart with a brief explanation of the manufacturing process and technology.
Material Safety Data Sheet in respect of all hazardous substance
Process Risk/Hazards details (reference: Item No. 11.1 to 11.3 of the application formats)
On-Site Emergency or Disaster Preparedness Plan and Off-Site Emergency Plan/ Mutual Aid Scheme.
In case of a partnership firm or other association of individuals, the copy of partnership deed is required.
In case of a company, the list of directors/ shareholders details are to be present in the articles of association.
2. Docs required for Plan Approval:
Three copies of Form No. 1 Prescribed under Rule - 3.
Process Flow Diagram of plans
Brief write up on process and technology
Blueprint of Plans in duplicate
Drawn to scale representing the site of the factory and immediate surroundings including adjacent buildings and other structures, roads drains etc.
Drawn to scale representing the plan, elevation and constant cross-section of the various buildings, including all appropriate details representing natural lighting, ventilation and the method of escape in case of fire. The plan shall also clearly indicate the position of the plant and machinery, aisles, electrical panels, switches, motors with rated H.P. etc. and passageways.
No Objection Certificate from local authorities in respect of non- agricultural land, forest, wetland, hills, sanctuaries etc. (SDG - 15, Assam vision 2030).
Clearance certificate from the controller of explosives, if any.
The exact certified copy of the executed deed of ownership/ lease/ allotment of land/ building/ flat etc.
3. Docs for Licences:
Three copies of Form No. 2 prescribed under Rule - 4 and Rule - 7.
Treasury Receipt in original, showing the deposit of appropriate fees as per schedule A, B or C [Rule 5 (1)]
Executed Partnership deed in case of a firm or any other association of individual and nomination of occupier/ licensee for the Act.
Details of Association and Memorandum of Incorporation in case of a company of the Indian Companies Act 2013, and Directors/ Shareholders and resolution of B.O.D.'s list for the nomination of occupiers for the Act.
Appointment letter in regard of Chief Administrative head of the unit from the concerned Ministry/ Board in case of Govt. / Local Fund as an occupier for the Act.
Once this is done you are good to go with the commercial production.
Note: There are other requirements also like pollution certificate, Trade License etc so make sure you comply with the docs properly.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
Quote of the day:
“What's money? A man is a success if he gets up in the morning and goes to bed at night, and in between does what he wants to do.“
- Bob Dylan
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CA Umang Jain
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