Odisha Factory License

Odisha Factory License

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Odisha Factory License

In India, the provisions for starting and operating a factory is regulated by the Factories Act of 1948. In this article, we look at the procedure for obtaining Odisha factory license.

Conditions for Issue of License

The Odisha state regulations convey that no premises should be utilized as a factory without the grant of a license by the Chief Inspector (Director of Factories and Boilers, Odisha). Following are some of the rules underlying the establishment of a factory:

  • Parties interested in availing a license must file an application for the registration of a factory and the grant of license. The application must be made in Form 2, supported with enclosures like stability certificate and other specified documents.
  • Details related to the registration fee are specified in the schedule appended to Rule 5 of the Odisha Factories Rules, 1950.
  • The application for grant of a license will be considered on receipt of the notice of occupation by the Chief Inspector.
  • The license will be valid for a stipulated period, after which it must be renewed.
  • Licenses granted or renewed under the Act will be effective up to the 31st of December.
  • The occupier is within his/her rights to apply for license renewal for a five-year term by remitting a fee that is five times of the existing license fee.
  • Factories operating with more than 100 workers may apply for the document in the office of the respective Deputy Director of Factories and Broilers.
  • The application for grant of a license, amendment of transfer license and five-year term license renewal must be made to the Chief Inspector. The task of chief inspection is assigned to the Director of Factories and Boilers, Odisha. The application must be supported with the requisite fee amount.
  • As per the existing laws, any unit which is registered under the Factories Act and is issued with a license need not obtain the same under the Shop and Establishment Act.

Factories Act

The Factories Act, which was framed and put into effect on the succeeding year of India’s independence, is a model that formulates the country’s national policies concerning occupational safety and health in factories and docks. Its focus areas include safety, health, efficiency, and welfare of people at workplaces.

The administrative responsibilities of the Act are vested with the Ministry of Labor and Employment. The regulatory body executes its functions through its Directorate General Factory Advice and Labour Institutes (DGFASLI) and the various state governments.

How is it Granted?

The issue of factory licenses requires the approval of site/building plan, the likes of which requires a blueprint of the factory, which is to be prepared by an architect in accordance with the format stated by the Factory License issuing authority. After the verification of the same along with the documents and application furnished by the applicant, the concerned authority issues the license.

Registration Procedure

Let us now understand the procedure to obtain registration and license under Factories Act, 1948:

Step 1: File an Application

The applicant may initiate the application procedure by filing an application in Form 2, supported with the required documents and fee to the office of the Director of Factories and Boilers, Odisha.

Step 2: Time for Scrutiny

The clerk designated for the purpose opens a new file for this purpose and allocates it for scrutiny.

Step 3: Approval

After the stage of scrutiny, the documents are processed for approval by the competent authority. In case of any discrepancies, the application has to respond to the same within the specified time, after the receipt of which it is processed in a file for the approval of the authorized personnel.

Step 4: Issue of License

If the application is approved by the concerned authorities, a registration certificate and license is sent via post to the applicant, along with a covering letter.

Renewal Procedure

The procedure for renewal of a license or registration issued under this Act is the same as that of the application procedure, despite the existence of subtle differences.

Documents Required

The documents listed below must be produced for registration and grant of a license under the Factories Act:

  • Application in Form 2 or as an alternative, a combined application form for the establishment of industries in Form 1AA.
  • Construction completion report.
  • The requisite fee, which must be remitted in shape of Treasury Challan in proper Head of Account based on the fee structure specified in the Odisha Gazette. The fee requirement changes on a frequent basis and the applicant is advised to refer the same while making the application.
  • Resolution of director/partners nominating a person to play the role of an occupier under Section 2(n) of the Factories Act.
  • Original copy of the Stability Certificate issued by a recognized but authorized personnel.
  • Safety and Health Policy, meant to be produced by 2(cb), MAH category factories and other factors holding at least 50 workers.

For Renewal of License

The following documents must be possessed while applying for a renewal:

  • Application in Form 2 or as an alternative, a combined application form for the establishment of industries in Form 1AA.
  • The requisite fee, which must be remitted in shape of Treasury Challan in proper Head of Account based on the fee structure specified in the Odisha Gazette. The fee requirement changes on a frequent basis and the applicant is advised to refer the same while making the application.
  • Copy of the original factory license.

For Renewal of License (Five-year Term)

  • Application in Form 2 or as an alternative, a combined application form for the establishment of industries in Form 1AA.
  • A fee, which is five times the actual licensng fee.
  • Original copy of factory license.

Timeline for Issue of Certificate

In the absence of any discrepancies, all the licenses covered under this provision will be issued within thirty days of filing the application.

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