Provisions of Factories Act, 1948 regarding Approval, Licensing and Registration

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Provisions of Factories Act, 1948 regarding Approval, Licensing and Registration

(Section 6 and relevant rules)

The Factories Act, 1948 is a social welfare legislation enacted to ensure adequate safety, health, and welfare of workers in factories. One of its vital components deals with approval, licensing, and registration of factories which is provided under Section 6 of the Act.

🔹 1. Purpose of Approval, Licensing and Registration

To ensure that no factory begins operations without the knowledge and supervision of competent government authorities.

To verify compliance with safety, health, environmental and structural norms before the commencement of operations.

🔹 2. Legal Foundation – Section 6

Section 6 of the Act empowers the State Government to make rules concerning:

Approval of factory plans

Grant of licenses

Registration of factories

Renewal, suspension, revocation or modification of licenses

🔹 3. Approval of Factory Plans

Before construction or extension:

Owner/occupier must submit the building plan and layout to the Chief Inspector of Factories.

Plans must contain details like:

Site layout

Nature of manufacturing process

Number of workers

Arrangement for disposal of wastes

The Chief Inspector verifies:

Structural safety

Fire exits

Ventilation and lighting

Sanitation and welfare facilities

Only after approval can the construction or extension proceed.

🔹 4. Application for License

Every occupier must apply for a license before starting manufacturing operations.

The application must include:

Name and address of the occupier and manager

Type of manufacturing process

Maximum number of workers

Installed horsepower/machinery capacity

Application is submitted to the Inspectorate of Factories in the prescribed form.

🔹 5. Registration of Factories

Upon approval and licensing, the factory is registered with the Factories Department.

A registration certificate is issued which is proof of legal operation.

This enables government monitoring for safety, health and labor laws.

🔹 6. License Conditions

A factory license is valid for a specific period (usually one year or as per state rules).

It must clearly mention:

Permitted number of workers

Permitted installed power

Address and name of factory

Nature of operations

🔹 7. Renewal of License

License must be renewed annually or periodically as per rules.

Renewal must be done before expiry to avoid penalties or closure.

Delay in renewal may attract additional late fees or cancellation.

🔹 8. Revocation or Suspension of License

A license can be revoked or suspended by the authority:

If the occupier violates safety rules

For unauthorized expansion or illegal modifications

For not adhering to labor welfare provisions

A show-cause notice is generally issued before revocation.

🔹 9. Exemptions and Modifications

Small factories with less than 10 workers using power or less than 20 without power may be exempted under Section 85.

State Governments have flexibility to modify rules and requirements based on size, nature, or risk level of the factory.

🔹 10. Penalties for Non-compliance

Operating a factory without valid approval, registration, or license may attract:

Fine up to ₹1,00,000 or imprisonment up to 2 years under Section 92

Closure of factory operations

Cancellation of existing license

🔹 11. Digital Application and Online Systems

Many states have implemented online licensing and registration portals for factories:

Reduces paperwork

Faster inspections and approvals

Transparency in compliance

🔹 12. Role of Factory Inspectors

Factory inspectors conduct:

Site inspections before approval

Compliance checks during operation

Verification of license conditions

Their report is crucial for granting or renewing licenses.

✅ Conclusion

The approval, licensing, and registration under the Factories Act, 1948 ensure that factories operate in compliance with labor, safety, and welfare standards from the beginning. These processes also empower authorities to regulate industrial establishments for the benefit of both workers and the environment.