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FACTORY
Formation / Continuation / Dissolution / Restructuring.

➤➤ FACTORY / INDUSTRY / MANUFACTURING UNIT :

  • Factory Registration is mandated by the Factories Act, 1948 to ensure that a factory complies with the stipulated rules and safety guidelines. Upon registering a factory, the Government of Karnataka issues a factory license. This license is a document of authorisation for granting permission to regulate and carry out manufacturing pursuits from a particular locality.
  • According to the Factories Act 1948, any person who wants to construct, extend or take into use any building as a factory in Karnataka has to get prior permission from the respective authority in advance before the commencement of the manufacturing business.
  • 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 the factories. Also, it strives to curtail the hazardous growth of factories. To complete the Karnataka Factory Registration and to obtain a factory license you need to follow three steps:
  • Obtain Consent for Establishment – Approval of Plan and Permission to Construct/ Extend/ or Take into Use Any Building as a Factory
  • Obtain Consent for Operation – Registration of Factory & Get license under the Factories Act, 1948

Eligibility Criteria

  • Factories in which ten or more workers are employed with power being used in the manufacturing process and factories which are engaging twenty or more workers without using power in manufacturing process need to be registered in Karnataka under the Factories Act, 1948.
  • Any entrepreneur who wishes to construct, extend or take into use any building as a factory in Karnataka need to get plan approval and permission to build, extend or to use any structure as a factory. After construction, the factory owner has to register the factory under the Karnataka Factories Act, 1948.
  • The applicant has to pay a prescribed fee as per the proposed schedule.  The fee for factory registration is based on the Maximum number of persons to be employed on any day during the year, and the Quantity of Maximum horsepower/kilowatt machines (H.P/K.W) installed. You can get the fee online through the official website of Department of Factories, Boilers, Industrial Safety & Health, and Government of Karnataka.

Documents for Plan Approval

  • Factory Plans
  • Challan (fee for approval of plans)
  • Brief Write up of the manufacturing process
  • Flowchart of the manufacturing process
  • Possession Certificate (Lease deed or Sale deed or Rental agreement) (for initial approval)
  • Questionnaire
  • Stability Certificate (In case of building already in existence)
  • KSPCB Clearance (As applicable)
  • NOC from Fire & Emergency Services (As applicable)
  • Licenses and Approvals issued by Municipal Corporation / Taluk Panchayat / Village Panchayat / KIADB
  • PESO (Petroleum and Explosive Safety Organization) approval in respect of SMPV (Static & Mobile Pressure Vessels)
  • Any other documents as specified by the prescribed authority.

Documents for Factory Registration

  • Challan (registration fee) (depending on the Maximum number of workers proposed to be employed, HP and KW (As shown in the plan approved)
  • VAT Certificate
  • DIC Certificate
  • Partnership deed (in case of Partnership firm)
  • MOA and AOA ( in case of Private Limited or Limited Company) and Copy of Form No.32/12 supporting the change in Directors from List of First Directors in AOA
  • Government order nominating person as Occupier ( in case of company owned by State or Central Government)
  • List of Partners, List of Directors with a residential address of all the Partners, Directors
  • List of Directors

Facilitating compliance of a Factory right from Registration / License of Factory to winding up of a Factory.

  • Factory plan / layout approval,
  • Registration,
  • License and compliance  issues,
  • Stability Certificate,
  • Machinery Layout,
  • Manpower Budget,
  • Employee Manual
  • Recruitment,
  • Dispensary,
  • Creche,
  • Fire Safety measure,
  • Hazardous Waste Management system,
  • Health,
  • Safety & Welfare measures for workers,
  • Statutory Factory Compliance Audit
  • Display of Notices

Procedure for closing down an undertaking/Factory

  • An employer who intends to close down an undertaking of an industrial establishment to which this Chapter applies shall, in the prescribed manner, apply, for prior permission at least ninety days before the date on which the intended closure is to become effective, to the appropriate government, stating clearly the reasons for the intended closure of the undertaking and a copy of such application shall also be served simultaneously on the representatives of the workmen in the prescribed manner:
  • PROVIDED that nothing in this sub-section shall apply to an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work.
  • Where an application for permission has been made under sub-section(l),the appropriate government, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen and the persons interested in such closure may, having regards to the, genuineness and adequacy of the reasons stated by the employer, the interests of the general public and all other relevant factors, by order. and for reasons to be recorded in writing, grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen.
  • Where an application has been made under sub-section (1) and the appropriate government does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days.
  • An order of the appropriate government granting or refusing to grant permission shall, subject to the provisions of sub-section (5), be final and binding on all the parties and shall remain in force for one year from the date of such order.
  • The appropriate government may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (2) or refer the matter to a Tribunal for adjudication:
  • PROVIDED that where a reference has been made to a Tribunal under this sub-section , it shall pass an award within a period of thirty days from the date of such reference.
  • Where no application for permission under sub-section (l) is made within the period specified therein, or where the permission for closure has been refused, the closure of the undertaking shall be deemed to be illegal from the date of closure and the workmen shall be entitled to all the benefits under any law for the time being in force as if the undertaking had not been closed down.
  • Notwithstanding anything contained in the foregoing provisions of this section, the appropriate government may, if it is satisfied that owing to such exceptional circumstances as accident in the undertaking or death of the employer or the like it is necessary so to do, by order, direct that the provisions of sub-section (1) shall not apply in relation to such undertaking for such period as may be specified in the order.
  • Where an undertaking is permitted to be closed down under sub-section (2) or where permission for closure is deemed to be granted under sub-section (3), every workman who is employed in that undertaking immediately before the date of application for permission under this section, shall be entitled to receive compensation which shall be equivalent to fifteen days’ average pay for every completed year of continuous service or any part thereof in excess of six months.

Notices By Factory Inspector

  • Notices By Factory Inspector With Regard To Shortfalls Of Features In The Factory Regarding Minimum Wages, Bonus, Gratuity, Overtime Work, Health,Safety And Working Conditions Etc.. are Effectively Attended.With Regard To Shortfalls Of Features In The Factory Regarding Minimum Wages, Bonus, Gratuity, Overtime Work, Health,Safety And Working Conditions Etc.. are Effectively Attended.

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