Factory Establishment in Rajasthan
Factory Establishment in Rajasthan
India is among the world’s most propitious destinations for manufacturing pursuits. The country boasts of a highly demanding market, lucrative policy supports (such as Make in India), and an unparalleled competitive edge. National statistics suggest a brighter future for the endeavour as the manufacturing sector’s GAV (Gross Annual Value) growth stood at an annual rate of 13.5% during the end of the previous financial year (2017-18). Also strikingly, the country requires the helping-hand of manufacturers to not only propel its economic strata but also to curb the menace of unemployment. In this article, we look at the procedure for obtaining factory establishment license in Rajasthan in detail.
Governing Regulation
All important mandates of the country are pursued through an Act. The regulations concerning factory establishment in India are furnished in the Factories Act of 1948. The Act entitles the various state governments of the country, including that of Rajasthan, to formulate rules with respect to the Act. These governments may discreet to:
- Decide for/against issuing a written permission for the establishment of a factory in a particular premise.
- Accept applications for such grants.
- Ordain the nature of such plans and specifications.
- Grant decline the registration and licensing of factories, and stipulating the fees payable for registration, licensing, and its renewal.
- Issuing a notice as per Section 7 prior to the grant/renewal of license.
Objective of the Act
The Factories Act is established with the objective of ensuring the installation of adequate safety measures and promoting the health and welfare of the workers employed in factories. Also, it strives to curtail the haphazard growth of factories.
Who is an Occupier?
The term ‘occupier’ holds a pivotal spot in the realms of the Factories Act. An occupier of a factory is a person who is vested with the ultimate control over its affairs. To state precisely, the following persons are considered as occupiers:
- Any of the individual partners or members thereof – if the factory so established is a firm or association of individuals.
- Any of the directors – if the factory so established is a company.
- People appointed to manage the affairs of the factory – if the factory so established is owned or controlled by the Central Government, State Government or any local authority.
Documents Required for the Issue of New License
The following documents are required to avail a factory license in the State of Rajasthan:
- An application in Form 2, which is duly signed by the occupier.
- Updated list of partners/Directors/Order of the Managing Agent, who is appointed by the Central or state governments or a Local Authority as an occupier.
- Form 32 of the Companies Act (for change in directorial personnel).
- Partnership deed/Memorandum or Articles of Association.
- Proof of ownership of the premises.
- Copy of the land sanction and the first electricity bill for registration.
- Proof of identity of both the occupier and the factory manager.
- Proof of address of both the occupier and the factory manager.
Documents Required for the Renewal of License
The following documents serve its purpose for the renewal of factory license in the State:
- Latest electricity bill of the factory.
- Application in Form 2 duly signed by the occupier.
- Proof of identity of the occupier and the factory manager.
- Proof of address of the occupier and the factory manager.
- Copy of the license.
Documents Required for Amendment of an Existing License
The following documents are required for the amendment of an existing license:
- Latest electricity bill of the factory.
- Application in Form 2, duly signed by the occupier.
- Proof of identity of the occupier and the factory manager.
- Proof of address of the occupier and the factory manager.
- Copy of the original license.
- Any of the vital documents produced during registration which supports the cause of amendments.
- Amended drawings (in the event of an increase in the number of workers).
Application Procedure
The procedure specified herewith is meant to assist a proposed licensee to make an online application. The application procedure is bifurcated into two parts for the easier understanding of the reader.
Step 1: Official Website
The applicant may initiate the process of license application through the official website of the Rajasthan Government which is designed for such purposes.
Step 2: Register
The user needs to register into the portal to avail the services offered by it. For this purpose, he/she needs to click on the option “Login to RajFAB” and read the stated given instructions carefully before proceeding.
Step 3: New User
Click on the option “New User! Signup/Register” tab, which can be found beneath the “Sign on” option. It may be noted that no applicant below 12 years of age can make an application for this purpose.
Step 4: Choose your Options
In the subsequent page, choose any of the options through which a username and password can be created. The list of options, which are given below, must be selected based on the availability of the documents:
- Bhamashah ID – If the user holds no other documents but the one mentioned here.
- Bhamashah ID and Aadhar ID, (UID) – If the user possesses both of these documents.
- Aadhar ID – If the user possesses no documents except for an Aadhar ID.
- Udyog Aadhar number – If the user is only in custody of a Udyog Aadhar number
As an alternative, the concerned applicant may choose to sign up through Facebook and Google.
Step 5: Rajasthan Single Sign-On
The user will be redirected to the “Rajasthan Single Sign-On” page, wherein he/she will be required to specify the details of the desired username and password. Upon creation of the same, click on the “Register” button.
Step 6: Alert Box
An alert box depicting the user ID will pop up. The user is required to make a note of it and click on the “OK” dialog box.
Step 7: Captcha Code
After reading the instructions displayed on the following page, the characters shown in the Captcha code must be entered, after which the “Login” button must be clicked.
Step 8: Update your Profile
The user will be required to specify the following details in the login page:
- Username (not ringing a bell? Refer step 5 and 6)
- The name desired to be displayed by the user on the license.
- Official e-mail ID of the applicant.
- Personal e-mail ID of the applicant.
- Mobile number
- Date of Birth
- Contact number
- Postal address
- City of residence of the applicant.
- State of residence of the applicant.
- Designation of the person.
- Gender of the person.
- Phone extension
- Postal code.
- Aadhar ID of the applicant.
After the specification of these details, click on the “Update Profile” button. The mobile number entered by the user will be verified through an OTP.
Step 9: Dashboard
The following page will redirect the user to the dashboard, wherein a list of applications will be portrayed. Select the option “Raj FAB” application.
Step 10: Instructions
Read the instructions provided in the page and confirm whether or not the registration for Factory and Boilers has been completed. If you are registering afresh to the website, click on the “No” button, and enter the requisite factory details to proceed. After entering the necessary details, click on the “Proceed” option.
File an Application
Step 1: Official Website
The applicant may initiate the process of license application through the official website of the Rajasthan Government which is designed for such purposes.
Step 2: Single Sign-On
The user will be required to select the “Single Sign-On” option (used for logging in), and then opt for the “rajFAB” icon on the “Single Sign-On” Dashboard to proceed with the application process. The applicant is advised to be ready with the “Business Registration Number” and the “Labor Identification Number” before heading with the application procedure. The same can be obtained from the website linked herewith.
Step 3: Form 2
Click on the option “Factory Form 2”, and chose the type of license sought for. An applicant may apply for registration/new license, renewal license or license for amending the existing license.
Step 4: Fill in the Details
Fill in the requisite details in the form.
Step 5: Payment
Necessary payments are to be made through the option provided in the portal.
Step 6: Uploading of Documents
Attach the required documents to the portal.
Step 7: Submission of Application
The application procedure can now be concluded by submitting the application form.
The Need of a Written Notice
The norms of factory establishment mandate the occupier of a factory to send a written notice to the Chief Inspector stating the following particulars:
- The name and situation of the factory.
- The name and address of the occupier.
- The name and address of the owner of the premises or building.
- The address of communication of the factory.
- The nature of the manufacturing premises pursued by the factory during the previous 12 months or during the succeeding 12 months. Details of the former must be stated for factories which are existent right from the date of commencement of this Act, while that of the latter must be stated by other factories.
- The rate of horsepower which is already in place or is yet to be installed in the factory (barring any rated horsepower of any separate standby point).
- The name of the manager of the concerned factory.
- The number of workers to be prospectively employed in the factory.
- Any other details as prescribed by the respective state governments.
It may be noted that these particulars are to be stated to the Chief Inspector prior to at least 15 days before the occupier decides to occupy the property or utilize the premises as a factory.
The appointment of a new manager must be supported by a notification to the Chief Inspector within seven days of handing over the reins to such a person. On the same page, if a person hasn’t been acting as a manager, the occupier of the property will be considered as the manager of the factory.
Time Taken for Grant of Registration/License
Factory licenses are issued to the applicant on different timelines, thanks to the varied form of factory establishments. Here’s a list of the time-frame fixed by the Rajasthan Government for this purpose:
- Non-hazardous and non-power factories – 7 days
- Non-hazardous factories – 15 days
- Hazardous factories -21 days
- Factories in pursuit of dangerous operations – 21 days
- MAH factories – 60 days
