It is obligatory for every factory in India to abide by the rules and guidelines stated in the Factories Act, 1948. The first step towards establishing a factory in India is the registration of the factory, and once the registration is done, the licenses can be availed from the government. Following is the procedure to be followed for factory registration in India:
Following is the list of documents needed for Factory Registration:
Licensing of Factory
The owner of the factory has to take prior permission from the State Government or the Chief Inspector in writing for the site on which factory is to be situated.
Further to get a license, the occupier must send the notice under section 7 of the Act to the Chief Inspector, at least 15 days before he begins to use the premise as a factory containing the following details:
According to the Factories Act, 1948, the employees working in the factories would gain the benefit of the following regulations:
Labour welfare fund is a statutory contribution managed by individual state authorities. It is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living.
To justify the above statement, various state legislatures have enacted an Act exclusively focusing on welfare of the workers, known as the Labour Welfare Fund Act. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. However, the rate of contribution may differ from one state to another.