Odisha Factory License

In India, the provisions for starting and operating a factory are regulated by the Factories Act of 1948. This article outlines the procedures for obtaining an Odisha factory license, ensuring compliance with the regulations stipulated by the state's governing bodies to ensure operational legality and worker safety.

Conditions for Issue of License

The Odisha state regulations mandate that no premises should be utilized as a factory without a license granted by the Chief Inspector (Director of Factories and Boilers, Odisha). Here are some key conditions for the establishment of a factory:

Applicants must submit an application for the registration of a factory and the grant of a license in Form 2, including necessary enclosures such as a stability certificate and other specified documents.
Registration fees are outlined in the schedule appended to Rule 5 of the Odisha Factories Rules, 1950.
License applications undergo a review process after the notice of occupation is received by the Chief Inspector.
Licenses are valid for a specified period and must be renewed before expiration.
All licenses, upon granting or renewal, are effective until December 31st each year.
To streamline the process, occupiers may apply for a five-year license renewal by paying a fee five times the current license fee.
Factories employing more than 100 workers should submit applications at the office of the Deputy Director of Factories and Boilers.
Applications for licenses, amendments, transfers, and renewals must be submitted to the Chief Inspector with the appropriate fees.
Units registered under the Factories Act are exempt from obtaining additional licenses under the Shop and Establishment Act.

The Factories Act

The Factories Act, established post-independence, formulates India's national policies on occupational safety and health in factories. It emphasizes worker safety, health standards, operational efficiency, and employee welfare. The Ministry of Labor and Employment administers the Act through the Directorate General Factory Advice and Labour Institutes (DGFASLI) in coordination with various state governments.

How is it Granted?

The issuance of factory licenses involves the approval of the site/building plan, which requires an architect-prepared blueprint adhering to authority guidelines. Upon comprehensive verification of the submitted documents and application, the concerned authority will grant the license.

Registration Procedure

To secure a factory license in Odisha under the Factories Act, 1948, follow these steps:

Step 1: File an Application

Begin by filing Form 2 with requisite documents and fee at the Director of Factories and Boilers, Odisha.

Step 2: Time for Scrutiny

A designated clerk will process the file for scrutiny and forward it for further review.

Step 3: Approval

After scrutiny, the documents are submitted for approval. Applicants must resolve any discrepancies promptly to prevent processing delays.

Step 4: Issue of License

Upon approval, a registration certificate and license, accompanied by a covering letter, are dispatched via post.

Renewal Procedure

The renewal of a factory license under this Act mirrors the original application procedure, with a few distinctions to simplify the process.

Documents Required

The following documents are essential for factory registration and licensing under the Factories Act:

Form 2 application or a combined application form (Form 1AA) for industry establishment.
Construction completion report.
The requisite fee as a Treasury Challan as per the Odisha Gazette fee structure.
Director/partner resolution nominating an occupier under Section 2(n) of the Act.
Original copy of a recognized personnel-issued Stability Certificate.
Safety and Health Policy for MAH category factories or those employing at least 50 workers.

For Renewal of License

The following are needed for license renewal:

Form 2 application or combined application form (Form 1AA).
Fee via Treasury Challan as per the Odisha Gazette.
Copy of the original factory license.

For Renewal of License (Five-year Term)

Essential documents include:

Form 2 application or combined application form (Form 1AA).
A fee five times the standard licensing fee.
Original factory license.

Timeline for Issue of Certificate

In the absence of discrepancies, licenses will be issued within thirty days of filing the application. For more information on business compliance, consider exploring services like ISO registration or expert consultations with Abhishek R to facilitate your procedural journey.

Back to Learn

Frequently Asked Questions

Common questions about Odisha Factory License Acquisition.

The Factories Act, 1948 is an Indian legislation that formulates national policies concerning occupational safety, health, efficiency, and welfare of workers in factories and docks. It aims to ensure safe and healthy working conditions for factory employees.

Yes, no premises can be utilized as a factory in Odisha without obtaining a license from the Chief Inspector (Director of Factories and Boilers, Odisha). The license is mandatory for establishing and operating a factory in the state.

Interested parties must file an application in Form 2, along with necessary enclosures like a stability certificate and other specified documents. The application should be submitted to the office of the Director of Factories and Boilers, Odisha, along with the required fee.

Licenses granted or renewed under the Factories Act are valid until the 31st of December of the year in which they are issued. However, occupiers can apply for a five-year term license by paying a fee five times the regular license fee.

No, any unit that is registered under the Factories Act and has been issued a license does not need to obtain a separate license under the Shop and Establishment Act.

The process involves filing an application with the required documents and fee, followed by scrutiny and approval by the competent authority. If approved, a registration certificate and license are issued to the applicant.

The necessary documents include an application in Form 2 or Form 1AA, a construction completion report, the requisite fee, a resolution nominating an occupier, a stability certificate, and a safety and health policy (for factories with 50 or more workers).

In the absence of any discrepancies, all licenses covered under the Factories Act are typically issued within thirty days of filing the application.

Yes, factory licenses can be renewed in Odisha. The renewal procedure is similar to the application process, but the applicant needs to submit the original factory license along with the required documents and fee.

The Director of Factories and Boilers, Odisha, serves as the Chief Inspector and is responsible for considering and approving applications for factory licenses, as well as overseeing the implementation of the Factories Act in the state.