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Factory Licencing

Madhya Pradesh Factory Registration

In Madhya Pradesh, the factory owners are required to register their premises with the local governing authority before starting operations. Factory registration in India is regulated by the provisions of the Factories Act, 1948. The premises where 10 or more persons are employed with the use of power in manufacturing activities, 20 or more persons are employed without the use of power in manufacturing activities are necessary to be registered under factories act 1948. Factory license is a certificate issued by the Chief Inspector of Factories to carry out manufacturing pursuits in the state. In this article, we look at the documents required, applicability and procedure for obtaining the Madhya Pradesh Factory License.

Madhya Pradesh Factories Rules, 1962

As per the Madhya Pradesh Factories Rules,1962, a factory has to get the Building Plan Approval from the Madhya Pradesh Labour & Employment Department before applying for the factory registration. Under the Factories Act, 1948, and Madhya Pradesh Factories Rules, 1962 the registration and renewal of licenses are also done to ensure the safety and health of workers. The Labour Department maintains the record of each and every factory satisfying the conditions of the Madhya Pradesh Factories Rules, 1962 regarding their workers, chemical usages, power consumptions and accepts returns that come under various acts from those companies on a periodical basis.

Madhya Pradesh Factories Rules, 1962 is formulated with the aim of ensuring the factories working conditions, to regulate the safety welfare, health, working hours of adults and annual leave for workers. This Act enacts a provision in respect of young persons, women workmen and children who work in the factories.

Applicability of the Act

This Factories Act, 1948 is applicable to all factories, including State and Central Government, in the premises wherein:

  • Ten or more persons are employed with the use of power.
  • Twenty or more persons are employed without the use of power.
  • Less than ten workers, if the activity is notified by the State Government.

This legal law imposes upon the owner or the occupier with specific obligations to protect the workers. This legislation also empowers the government to appoint persons as inspectors who possess the prescribed qualifications along with the local limits.

Documents Required

The below following are the document checklist for the approval of new factories plan under the Factories Act, 1948.

  • Application in Form No. 4 to be obtained from the Labour Department.
  • Original Licence
  • Treasury Challan in original
  • Paid e-challan or payment receipt in original towards the payment of fees.
  • Approval for proposal or project by Madhya Pradesh Investment Promotion and Facilitation Board.
  • Stability Certificate, duly signed by the Chartered Engineer.
  • A resolution passed by Board of Directors.
  • N.O.C (No Objection Certificate) from any Local Authority such as Municipality / Panchayat / Meghalaya Industrial Development Corporation
  • Photo Copies of Approved plans
  • Copy of power sanction certificate
  • No Objection Certificate (N.O.C) from Meghalaya State Pollution Control Board (Consent to Establish / Consent to Operate and Authorization)
  • No Objection Certificate (N.O.C) from Meghalaya State Pollution Control Board (Consent to Establish / Consent to Operate and Authorization)
  • No Objection Certificate (N.O.C) from Petroleum and Explosives Safety Organization in case of factories using, manufacturing, storing explosives or petroleum substances
  • No Objection Certificate (N.O.C) from Directorate of Foods and Drugs Administration for pharmaceutical, foods, liquor, and drugs factories.
  • No Objection Certificate (N.O.C) from Marmugao Port Trust for the shipyard/ Captain of Ports, docks or any site near the sea, river banks, etc.

Documents Required for the Change of Occupier

A fee of Rs. 100/- has to be deposited as an amendment fee if there is a change of occupier. The following certificates are required to be submitted if there is a change of occupier.

In case of proprietorship concern

  • Declaration about the proprietor and the occupier.

In case of partnership concern

  • List of partners
  • Copy of partnership deed
  • A resolution passed by partners in which one of partner has been appointed as an occupier.

In case of a company

  • List of Directors
  • A resolution passed by Board of Directors in which one of director has been appointed as an occupier.

Documents Required for Change in the Factory Name

If there is a change in the name of the factory, then Rs. 100/- is to be deposited as an amendment fee. The following certificates are required to be submitted if there is a change in the name of the factory.

  • Certificate from Registrar of Companies regarding change of name.
  • Memorandum and Article of Association of the new company
  • List of Directors (in case of a company).
  • A resolution passed by Board of Director in which one of Director has been appointed as an occupier.
  • Certificate from Registrar of the firm regarding the change of name.
  • List of Partners (in case of the firm).
  • Copy of partnership deed
  • A resolution passed by partners in which one of partner has been appointed as an occupier.

Documents Required for the Renewal of License

  • Original license for endorsement of renewal
  • Copy of Previous Factory License
  • Form No. 2 duly filled up and complete in all aspects
  • Process flowchart

Treasury Challan in original regarding the deposit of renewal fee

Note: All the documents/ records are required to be signed by occupier (proprietor, partner or director)

Applicable Fee Schedule

Fee Schedule realised under the Factories Act for Licensing and Registration of Factories for one year is tabulated below:

Schedule A – Factory Act Fee Schedule
Workers Range and Annual Fees in Rs.
Horse Power From 1 to 9 From 10 to 20 From 21 to 50

From

51 up to 100

From

101 to 250

From

251 up to 500

From

501 to 750

From 751 up to 1000 From 1001 up to 1500 From 1501 to 2000

From

2001 up to 5000

Above

5000

0 to 10 Rs. 857 Rs. 1429 Rs. 2000 Rs. 2857 Rs. 3427 Rs. 6855 Rs. 10282 Rs. 11425 Rs. 17137 Rs. 22849 Rs. 25705 Rs. 34274
11 to 20 Rs. 1143 Rs. 2000 Rs. 2857 Rs. 4285 Rs. 5713 Rs. 8569 Rs. 11425 Rs. 14281 Rs. 22849 Rs. 25705 Rs. 34274 Rs. 42842
21 to 50 Rs. 1429 Rs. 2857 Rs. 4285 Rs. 5713 Rs. 8569 Rs. 11425 Rs. 14281 Rs. 19993 Rs. 25705 Rs. 34274 Rs. 42842 Rs. 51410
51 to 100 Rs. 2286 Rs. 5713 Rs. 8569 Rs. 11425 Rs. 14281 Rs. 17137 Rs. 19993 Rs. 27134 Rs. 34274 Rs. 42842 Rs. 51410 Rs. 57122
101 to 250 Rs. 2857 Rs. 8569 Rs. 11425 Rs. 14281 Rs. 17137 Rs. 19993 Rs. 27134 Rs. 31418 Rs. 42842 Rs. 51410 Rs. 57122 Rs. 62835
251 to 500 Rs. 4285 Rs. 11425 Rs. 14221 Rs. 17137 Rs. 19993 Rs. 25705 Rs. 34274 Rs. 39986 Rs. 51410 Rs. 57122 Rs. 62835 Rs. 71403
501 to 750 Rs. 5713 Rs. 14281 Rs. 17137 Rs. 19993 Rs. 25705 Rs. 31418 Rs. 39986 Rs. 45698 Rs. 57122 Rs. 62835 Rs. 68547 Rs. 74259
751 to 1000 Rs. 6855 Rs. 17137 Rs. 22849 Rs. 25705 Rs. 34274 Rs. 37130 Rs. 45698 Rs. 51410 Rs. 62835 Rs. 68547 Rs. 74259 Rs. 79971
1001 to 2000 Rs. 14281 Rs. 19993 Rs. 25705 Rs. 31418 Rs. 39986 Rs. 45698 Rs. 51410 Rs. 57122 Rs. 68547 Rs. 74259 Rs. 79971 Rs. 85683
2001 to 3000 Rs. 19993 Rs. 22849 Rs. 31418 Rs. 39986 Rs. 51410 Rs. 62835 Rs. 74259 Rs. 85683 Rs. 97108 Rs. 108532 Rs. 119957 Rs. 131381
3001 to 4000 Rs. 25705 Rs. 31418 Rs. 37130 Rs. 45698 Rs. 57122 Rs. 68547 Rs. 79971 Rs. 91396 Rs. 102820 Rs. 114244 Rs. 125669 Rs. 137093
4001 to 5000 Rs. 31418 Rs. 37130 Rs. 45698 Rs. 57122 Rs. 68547 Rs. 79971 Rs. 91396 Rs. 102820 Rs. 114244 Rs. 125669 Rs. 137093 Rs. 148518
5001 + Rs. 37130 Rs. 45698 Rs. 57122 Rs. 68547 Rs. 79971 Rs. 91396 Rs. 102820 Rs. 114244 Rs. 125669 Rs. 137093 Rs. 148518 Rs. 159942

Offline Application Procedure for Factory License

The applicants will have to follow the below steps to make an online application for the factory registration:

Approach Directorate of Factories Office

Step 1: Before applying for the factory license, the plan of the factory has to be approved by the Director / Joint Director Industrial Safety and Health and a Certificate of stability issued to the competent person.

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