Requirement of factory licence

We have one shed for the assembly of equipment. We bring various parts from outside & make assembly of it to make one equipment. We also have Excise license. 

Do we need to take factory licence also. Just assembling of equipment also comes under factory act?

Please advice


HR Check List for Statutory Records & Returns 


The Factories Act, 1948 




* Register of Compensatory Holidays - Form -8 

* Register of Adult Workers - Form-11 

* Register of Leave with Wage Register - Form-14 

* Muster Roll - Form-22 

* Register of Accident & Dangerous Occurrences - Form-23 

* Inspection Book 

* Half yearly Returns - Form - 21 (Before 15th of July & January of every year in duplicate) 

* Accident & Dangerous Occurrences - Form - 23 (Every Month) 

* Combined Annual Returns - Form - 20, (Before January every year) 

* Notice of Adult workers - Form – 10 


* Abstract of Factories Act, 1948 



1. When you are applying for Factory License for the first time in online mode certain questions in yes/no options are asked to minimize the data input from you. Kindly chose the option carefully. For example, it is asked "Have you earlier applied for factory license in form no 2 to this Office" and further asks if the factory is licensed or not etc. If as per answers of the these question factory is found already licensed than data would be asked for only onward year (s) from the year of validity of factory license i.e. no data in respect of old years would be asked form the licensed factories. Otherwise also the factories are required to give the data of old year staring from the setting up year ( as mentioned in sr no 4 of BIP) only for once.
2. The procedure for online application for Registration/License/Renewal is in five steps,
I) Forwarding letter, 
You may state your contentions by writing in text area or uploaded already prepared documents.
II) Application in Form No. 2, 
The online application in form no 2 is submitted, it uses all the data already filled in BIP wherever required.
III) Automatic fee calculation, information of already fee payments, 
         The amount of license fee is dependent upon the three variables i.e. maximum number of workers employed, amount of power installed and number of workers employed on dangerous operations. Therefore,you are required to provided information on three parameters year wise.
           The above data from already licensed factories is asked only for the onward year (s) form the validity year of license, but for others data would be asked form the year of setting up ( as filled in sr. no 4 of BIP) 
         You shall have to keep handy the scanned copies of all the Treasury Challan to upload as the proof of fee payment for the period as explained in the just above paragraph. 
         Depending upon the furnishing of information about the already fee paid and calculating the fee from the schedule, the system would make you known about the balance of fee, if any, which you is requited to be paid after uploading the documents in next step.
IV) Documents to be attached/enclosed in addition to copy of Treasury Challans The scanned copy of the documents should be legible and size of the document not to be more than 2 MB.
a) Old/latest factory license, if granted.
b) Copy of factory building plans approval letter, if required as per procedure, ( Note: the blue prints of drawing are not required but only the forwarding letter on the approved drawings)
c) List of director/ partners
d) AOA/MOA/Partnership Deed, only relevant pages may be uploaded.
e) Board resolution authoring the Occupier,
f) Sanctioned load from HVPNL
         In subsequent year upload the documents only which have under gone any change. For example if the factory building plans are not amended, renewed etc than no need to upload again it and system will show the earlier copy.
V) Actual payment of license fee, if due.
Next step is to make payment of balance fee. The system at this steps shows the calculation of fee year wise and enable you to make the payment of balance fee via
a) Online using Debit/Credit Cards
b) Offline payments 
         In the offline method at this steps you will get the print out of the HDFC bank deposit slip. The printed deposit slip shall have all the relevant information in respect of Bank Account number and amount to be deposited etc. The balance amount of fee may be deposited in a any branch of Bank .
         However, you may also deposit this amount of the balance/pending fee in the old fashion of Treasury Challan but donot forget to upload its scanned copy immediately as a proof of fee payment.
         The system shall be keeping the logs of all the earlier submitted BIP, Factory license Application in chronological order.
3. As in the electronic mode of application generally digital signature are used but due to its low penetration level in the market and to meet out legal requirement you are required to upload the signed copy of form 2 ( which can be downloaded form this site at this step) and send the original to the Department.
With these steps your application for Registration/License/Renewal is complete.
4. The department shall process this application online. You can view the details of processing of application in chronological order in real time. The icon for viewing of the detail/outcome of processing is just next to this page ( if you have submitted online application at least once).
5. In case of any observation (s) made by the department which require compliance, you can do so in real time. The observations of the department, if any, are sent to you via e-mail and are also visible on the status page in crystallized form. You can click on compliance at this stage and do the needful as is required in the observations.
6. In case all the formalities are in order and appropriate authority approve/ grants the factory license than you can view the Registration Certificate/ Factory License as the case may be on the status page itself. You can also get its printout.
7. For the purpose of checking the authenticity/ validity by the third party ( e.g. buyer etc. ) of the online issued factory license , the systems generates 16 digit unique number on the license and provide with the facility to verify it form the home page of this web-portal.

Attached File : 104687416 procedure.pdf downloaded 171 times

Factory License Procedure

1) Attach Form No 2 & 3 (in three copis)with submission of required fees

2)Fees will depend upon present manpower strength / how many manpower strength yo want to take license and Horse Power used

3)kindly attach the descripttionn of manufacturing procees , GPCB consent , factry license etc

4) Submit the form 2 & 3 duly signed with fees challan to Factory inspectorate office.

5)If it is new license them factory inspector of your area will come to visit the premises and compliances as per factory act 1948. If you have to renew the license than depends upon the Factory inspector to visit or not.

6) If their is no query than you will get the license within 3 to 4 months.

Attached File : 104687416 selfcerupto100.pdf downloaded 142 times



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