Similar to any other establishment, factories carry a set of compliances to ensure and manage their activities. The Factories Act 1948 envisages the safety and health measures of the workers and reduces the instances of abuses inflicted on factory workers, such as:
- Additional working hours
- Non-availability of holidays
- Occupational dangers
- Non-availability of safety gear
- Overcrowding
- Night shifts
- Below the minimum wage
- Absence of amenities in the work area
- Hazardous equipment
- Women employees and their security
- Child labour
To prevent such abuse of workers, the Factories Act mandates that the factory register with the concerned authorities.
In Tamil Nadu, to establish a factory, you require government registration, followed by the acquisition of a factory license.
The certified body that grants factory permits is the Director of Industrial Safety and Health. The joint chief inspector of factories, the deputy chief inspector of factories, or the chief inspector of factories grants the license based on the number of workers.
The factory license adopts a straightforward procedure:
- Plan acceptance – for the creation of the Factory
- Registration
- Permit
Eligibility Criteria to Apply for a Factory License
Factories that employ ten or more workers with power utilization in the production process and factories employing 20 or more workers without using power in the production process are required to be registered under the Factories Act, 1948, and Tamil Nadu Factory Rules, 1950. Any individual (Owner or Occupier of the factory) who wishes to build, extend, or bring into use any structure as a factory in Tamil Nadu is required to obtain a plan and permission to create, expand, or utilize any building as a factory. Following construction, the factory holder or the manager needs to register the factory under the Tamil Nadu Factories Act of 1948.
When to Apply for a Factory License?
Before beginning the building of a factory or, in the event of its expansion, the factory occupant is required to apply for acceptance of the plan and permission.
Suppose the application for acceptance of the factory plan and permit to build a factory structure gets approved before commencing the construction of a factory or its expansion. In that case, you can register the Factory in Tamil Nadu and apply for a factory permit.
Licensing Authority
The Directorate of Industrial Safety and Health, Tamil Nadu Government, upholds the process of Tamil Nadu Factory Registration.
- Factories employ 200 workers or fewer, other than those engaged in hazardous operations, according to the Deputy Chief Inspector of Factories.
- Factories are engaging more than 200 workers and up to 1000 workers, other than those involved in hazardous operations, by the Joint Chief Inspector of Factories.
- Factories employ over 1000 workers, and all factories are involved in hazardous operations by the Chief Inspector of Factories.
Joint Director ISH – the grant of license. This factory permit is a certificate that grants permission to operate a specific manufacturing business, as its issuance is limited to that purpose. It does not bestow the ownership of land or property or permission for any other activities other than those concerning its issuance.
Additional Director, Industrial Safety and Health – for the assignment of the Registration number to the New Factory.
Processing duration
The total time for deciding the application from the date of application for Registration of Tamil Nadu Factory will be thirty days from the date of effective presentation of the application.
Details of Validity
The factory scheme acceptance license issued under the Factories Act to build, extend, or utilize any structure as a factory is valid for its entire life from the issuing date. The factory permit issued to conduct business is valid for 10 years from the issuing date. You can renew the license after its expiry.
Documents Needed to Apply for Factory License
Documents needed for Tamil Nadu Factory Registration are enumerated as follows:
- Document for Factory Plan Acceptance
- The Topo Plan, Detailed Plan (1:100 Scale), and Site Plan (1:400 Scale) of the buildings are provided in triplicate, together with the machinery installation particulars.
- Supporting documents for the possession of premises (Sale deed, Rental deed/Lease deed)
- Proof of Address of Occupier
- Process Flowchart
- Proof of Identity of Occupier
Document for Factory Registration and License
- Supporting documents for the tenancy of premises (Sale deed, Lease deed/Rental deed)
- Proof of Manager Identity
- Proof of Occupier’s Address
- Proof of Occupier Identity
- Proof of Manager’s Address
- Memorandum of Articles of Association under Partnership Deed or Companies Act
- Record of Machinery with details of Horse Power
Document for Renewal of Factory License
- Proof of Occupant Identity (In case of amendment)
- Proof of Manager Address (In case of amendment)
- Proof of Manager Identity (In case of amendment)
- Proof of Occupier Address (In case of amendment)
- Memorandum of Articles of Association under Partnership Deed/Companies Act (In case of amendment)
- Record of Machinery with details of Horse Power (In case of amendment)
Procedure for Tamil Nadu Factory License Registration
The application process to conclude Tamil Nadu Factory Registration and obtain a license is elucidated in step by step process here.
Registration on the DISH Website
Step 1: Enter the home page of the Directorate of Industrial Safety and Health, Government of Tamil Nadu
Step 2: Choose the option of the Occupier from the latest registration drop-down menu on the home page
Step 3: After choosing the Occupier, the user will be rerouted to the registration page. In the relevant fields, provide the specifics of the occupier staff, address, and login credentials.
Step 4: After providing the essential fields, select the “save registration particulars” button. The login credentials and occupier details will be saved, and a “Saved successfully” alert will appear.
Step 5: Your email ID for endorsement with the subject “Mail Verification – DISH’ will be activated.
Step 6: Select the hyperlink to activate your registration. ‘Your email ID has been effectively verified’ alert message will be shown, and you will be redirected to the login page.
Step 7: Enter your authenticated email ID in the username field, and password in the password field, and click the login button. After your username and password are successfully validated, you will be redirected to the Login home page.
Step 8: After logging in to the website, select the circle-shaped aviator icon in the upper right corner of the home page. On the ensuing pop-up, choose the Add New Factory option.
Step 9: If an occupant has multiple factories, include the details of their latest factory redoing the activities outlined in Step 3
Step 10: Furnish the following information about the factory for registration:
- General details
- The location of the Factory
- Address of Communication
Step 11: Input the general details, the location of the factory, and the address of communication in the relevant fields. After entering the mandatory fields, select the Submit button.
Step 12: When you choose the submit button, General Details, Address of Communication, and Location of the Factory will be saved, and a ‘Saved Successfully’ alert will be created.
Application for Factory Plan Acceptance
These are the steps for accepting the factory plan.
Use your login credentials to sign in to the website. Then, select the factory alternative from the drop-down menu and choose the dashboard link.
Select the “plan acceptance” service, which directs you to the “plan acceptance” flow.
After you enter the particulars in the plan, select “details of the Occupant” from the plan.
After you have furnished the manager’s particulars, you are required to select the details of the holder of premises from the “plan acceptance” flow. You need to provide details such as your present address, owner’s details, address, identity proof, and permanent address.
Now, select the plan details from the factory plan acceptance flow. You need to provide details such as the specifics of different workers and their capacities, the particulars of previous acceptances and the current plan, and the specifics of the production process.
You now gain access to the acceptance page for submitting.
Select the Join director from the drop-down menu who oversees the permit and registration form for the proposal, and then select the submit button.
The submit button will redirect you to the services home page after you choose the dashboard link. Now, from the menu, select ‘Services provided under the Factories Act’ to enumerate the facilities under the Factory Act.
You have already entered the factory particulars, so that you will have all the aspects concerning the factory in the factory particulars options.
You will be redirected to the occupant details section, where you must provide particulars like your current address, occupier details, permanent address, identity proof, and address proof.
Now you need to provide the particulars of the director, like the present address, address, identity proof, permanent address, and details of the director’s partner.
After you have completed all the details, you must select the Submit plan from the factory plan acceptance flow.
You need to pick the submit option from the drop-down menu.
After you have suggested it, you can print the application and then download it.
For Factory Enrollment and License
- Occupants should submit Form 2 via the DISH Portal together with the payment of relevant fees.
- Additionally, the establishment documents, a listing of machines with proofs of Occupation, and particulars of Horsepower need to be furnished.
- These documents should be forwarded to the Director of Industrial Safety and Health.
- Typically, the procedures need 30 days.
The entire process is online, providing convenience and transparency in place of tedious paperwork. After the forms are accepted by the authorities online, the factory permit will be mailed to the email address provided during the subscription process.
Renewal of Factory License
The factory permit should be renewed at least two months prior to the license expiration date. It is done online on the same website that was utilized for registration – DISH. The occupant should apply for renewal, and it takes nearly 30 days following submission.
Factory registration and licensing may be perceived as a lengthy and cumbersome process. But they can be expedited quickly and effectively with specialized guidance.
Wrapping Up
A factory license is an authorized document that issues permission to govern and engage in manufacturing operations from a specified locality. A factory license issued by the government of Tamil Nadu ensures that the factory operates in accordance with the norms and security guidelines established by them, thereby enabling its future expansion and smooth operation.
For hassle-free compliance and smooth operation of factories, our licensing services help navigate your business through proper documentation, guidance, and submission procedures within timelines, thereby avoiding unwanted delays.
