Factory Licence in Madhya Pradesh
If you are planning to set up a manufacturing unit in Madhya Pradesh, then you need to obtain Factory Licence. It is mandatory to obtain Factory Licence. It is not an option but it is a mandatory requirement as per Factories Act, 1948 along with Madhya Pradesh Factories Rules, 1962. Without Factory Licence, running of factory is an offence. This guide explains Factory Licence, need of Factory Licence and procedure of Factory Licence in simple words.
What is Factory Licence?
Factory Licence is official permission granted by Chief Inspector of Factories in Madhya Pradesh. Office of Chief Inspector of Factories is under Directorate of Industrial Health and Safety. Factory Licence is a permission granted by Chief Inspector of Factories to run a "factory" as defined in Section 2(m) of Factories Act, 1948. Without Factory Licence, a manufacturing premises cannot lawfully begin or continue operation.
Who needs Factory Licence?
As per Section 2(m) of Factories Act, 1948, premises qualify as "factory" if conditions are satisfied. Either 10 or more workers are employed while a manufacturing process is using power or 20 or more workers are employed while a manufacturing process is running without power. If premises satisfies either of these conditions, then you are legally required to obtain Factory Licence before starting the operation. Factory Licence is applicable to private enterprises and factories run by Government also.
Who can apply? - The "Occupier"
Only the "Occupier" of factory can apply Factory Licence. As per Section 2(n) of Factories Act, 1948, Occupier is the person having ultimate control over factory affairs. Occupier is generally proprietor, partner, director or a nominated government officer in case of government undertaking. Occupier and applicant must be the same person. In other words, if an application for Factory Licence is filed by any other person, then application is liable to rejection.
Legal Structure
Factories
Act, 1948 (Central Act) – defines ‘factory’, provides for registration and
requires the occupier to ensure the safety of workers.
· Madhya
Pradesh Factories Rules, 1962 (State Rules): These are the rules at the state
level that govern the process of plan approval, licensing, renewal and
compliance.
· Section 6
of the Act empowers the State Government to prescribe rules relating to
licensing and registration.
· Section
92 prescribes punishment for running a factory without a valid licence — fine
up to one lakh rupees, imprisonment up to two years or both.
Step 1.
Approval of the Factory Building Plan
Before
applying for the license, the Occupier must first obtain approval of the
factory's building plan from the Directorate of Industrial Health and Safety,
Madhya Pradesh. This is an important precondition that should not be forgotten.
The
following documents are required for plan approval in principle:
1
Application submitted in the prescribed format
2 Site
plan and layout plan of the building
3
Stability Certificate duly signed by a Chartered Engineer
4 Board
Resolution (if a company)
5 Approval of Madhya Pradesh Investment Promotion and Facilitation Board, if applicable
6 No
Objection Certificate from the local municipal or panchayat authority;
7
Evidence of ownership or tenancy of the property
8 E-challan
as a proof of fee payment
Step 2:
License Application
As per
Madhya Pradesh Factories Rules, 1962, the Occupier has to submit Form No. 4 for
applying the Factory Licence, after the approval of the building plan. The
application must be made at least 15 days prior to the use of the premises as a
factory as required by law.
Applications
are to be submitted online through the MP Online portal of the Directorate of
Industrial Health and Safety. The process involves:
1. Set up
a portal access account
2.
filling up Form No. 4 with complete details of Occupier, the premises, the manufacturing process and the
workforce.
3.
Submitting the necessary paperwork
4.
License fee to be paid online as prescribed
5. Submission of the application for departmental scrutiny
Documents Generally
Required
·
Identity
and address proof of the Occupier
·
Ownership
document or rent/lease deed of the factory premises
·
Approved
building plan and stability certificate
·
List
of machinery to be installed
·
Details
of manufacturing process
·
Details
of proposed workforce
·
Fire
safety and pollution control clearances, where applicable
· Board Resolution authorising the Occupier (for companies)
Validity and Renewal
A Factory Licence is generally issued for a period of one year and may be
renewed for a further period of one year or for a period of more than one year
as provided by the Rules. Section 92 provides for penal consequences for the
Occupier if the license expires, so it is advisable to apply for renewal well
before the expiry date.
Fees
The
licence and registration fees are paid on a slab basis depending on the number
of workers employed and the horsepower of the machinery installed. The Labour
Department releases the fee slab online and the payment is to be made online at
the time of application or renewal.
Consequences
of Non-Compliance
According
to Section 92 of the Factories Act, 1948, if a factory is worked either without
licence or beyond the expiry date of licence, the owner of the factory is
liable to pay a fine that may extend to one lakh rupees and to imprisonment for
a term not exceeding two years. In addition, daily fines are levied for
continuous violations till compliance is made.
Why
Legal Assistance Matters
The
process from plan approval to final grant of licence involves multiple
statutory forms, strict timelines, and technical documentation such as
stability certificates and board resolutions. An error or omission at the
plan-approval stage can delay the entire project by months. Engaging a
professional to prepare and vet the application reduces the risk of rejection
and keeps your factory's operations on the right side of the law from day one.
Why
Choose MyOnlineVakeel?
MyOnlineVakeel provides complete assistance for various statutory
registrations and licenses including document preparation, application filing,
department coordination, compliance support, and renewal services. We ensure
smooth, professional, and legally compliant registration services.
Contact
Us
MYONLINEVAKEEL
Bhopal,
Madhya Pradesh
Contact:
9669999037
Email:
MYONLINEVAKEEL555@GMAIL.COM
