Factory Licence Registration in Haryana

What is a Factory Licence?

A Factory Licence is a mandatory legal obligation under the Factories Act, 1948, required for those premises which carry out manufacturing processes employing 10 or more workers with the aid of power or employing 20 or more workers without power. This licence ensures that the factory has complied with the required safety, health and welfare standards for the workers.

Why is it needed?

• As operating a factory without one is a punishable offense under the Factories Act, 1948, therefore, obtaining a Factory Licence is essential for fulfilling legal compliance. Those factories which are found running without a valid licence can face considerable penalties, imposing heavy fines and in some cases even imprisonment. This makes the licence a crucial requirement for anyone planning to set up or operate a manufacturing plant in India.
• Beyond the legal requirements, a factory licence also ensures that the facility meets appropriate safety standards, which are very crucial for safeguarding the health and well-being of employees. It also validates the operational authenticity of the business, making easy to secure other necessary approvals, licences and participate in government tenders. To put it simply, the factory licence not only keeps the business on the right side of the law but also builds legitimacy and ensure the trust with stakeholders.

Benefits of Obtaining a Factory Licence

• Legal Recognition: It provides a legal status to the manufacturing unit, ensuring smooth business operations.
• Enhanced Credibility: It builds trust among clients, suppliers and stakeholders by demonstrating timely compliance with statutory requirements.
• Access to Government Schemes: It provides the eligibility for various government incentives and schemes aimed at promoting industrial growth.
• Employee Welfare: It ensures that implementation of health, safety and welfare measures for the employees, ultimately leading to increased efficiency and productivity.
• Avoidance of Penalties: It safeguards from falling into any kind of legal actions, fines and potential shutdowns due to non-compliance.

Eligibility Criteria

Factories in Haryana employing 10 or more workers with power or 20 or more without power, are required to register under the Factories Act, 1948, through the Labour Department, Government of Haryana. Compliance with the Haryana Factories Rules, 1950, is mandatory.

Documents Required in Haryana

• Building Plan Approval
• Layout Plan as per Factories Act
• KYC Documents of Owners/Directors
• Business Registration documents of firm/company
• Sale Deed/ Rent Agreement of premises.
• Sanctioned load from HVPNL / Latest Electricity Bill

Steps to Get a Factory Licence

1. Online Registration: Visit the Haryana Labour Department Portal and create an account.
2. Application Form: Fill out the form with accurate factory details.
3. Document Upload: Upload all required documents in the specified format.
4. Fee Payment: Pay the application fee through the online portal.
5. Inspection: The department will conduct an inspection of the premises.
6. Licence Approval: Post-inspection, the licence will be granted if all criteria are met.

Timelines

The timeline for obtaining factory licence in the state of Haryana generally takes 15 to 18 working days, subject to documents availability and government approvals.

Penalties in Case of Non-Compliance

• Non-compliance with the Factories Act, 1948, may result in fines up to ₹1,00,000 or imprisonment up to 2 years.
  
• A late factory licence renewal fees at 25% is payable, which is charged after the application for renewal is submitted. The date of submission of the application will be noted to calculate the late fee.