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Bihar Factory License

In Bihar, factory registration is mandatory as per the provisions of the Factory Act, 1948. Factory owners must register their premises with the district governing authority before the commencement of business. Before issuing a factory license, the approval of the building plan is compulsory for the factory. The Chief Inspector of Labour Commissioner Organisation will grant the factory license after registration. In this article, we have a look at the procedure for obtaining Bihar factory registration in detail.

The Factories Act, 1948

According to the provisions under the Factories Act, 1948 an application form has to be requested for site plan approval before the commencement of the construction to obtain a factory license. The Divisional Inspector of factories after examining the site may issue or reject the factory license within sixty days from the day of receiving the application.

Applicability of the Act

The below-mentioned factories are supposed to request for factory license under the following conditions.

  • The factory or establishment holds ten or more workers employed with the use of power for manufacturing activities.
  • The factory or establishment carries twenty or more workers employed without the use of electricity for manufacturing activities.

Sanctioning Authority

The powers for the approval of plans and factory licence renewal, under Factories Act 1948, are designated as given below:

S.No No of Workers Concerned Authority 
1. Factories were employing less than 300 workers. Assistant Director of Factories and Boilers.
2. Factories were employing less than 300 or more workers.

 Director of Factories and Boilers.

 

3. Major Accident Hazard Factories Chief Inspector of Factory

Validity of License

The validity of permit approval is for one year. If the construction is not completed within one year, then the applicant has to apply for revalidating the permit to the same sanctioning authority.

Applicable Fee for Factory License

The schedule fee for obtaining a factory license in the state of Bihar is given below for your reference.

The quantity of H.P placed

(Maximum H.P.)

 

The maximum number of persons to be worked on any day during the year for the license is to be taken.
  Up to 20 From 21 to 50 From 51 to 100 From 101 to 250 From 251 to 500 From 501 to 750 From 751 to 1000 From 1001 to 5000 From 5001 to 10000 From 10001 to 25000 Above 25000 From 501 to 750
Nil Rs.500 Rs.1950 Rs.2250 Rs.2750 Rs.3750 Rs.5000 Rs.7500 Rs.8750 Rs.10000 Rs.11250 Rs.12250 Rs.15000
Up to 10 Rs.1125 Rs.2000 Rs.2750 Rs.3750 Rs.5750 Rs.10000 Rs.12500 Rs.15000 Rs.22500 Rs.47500 Rs.50000 Rs.125000
Up to 50 Rs. 2250 Rs. 3250 Rs. 3750 Rs. 5250 Rs. 8250 Rs. 10750 Rs. 15500 Rs. 17500 Rs. 25000 Rs. 50000 Rs. 62500 Rs. 150000
Up to100 Rs. 3250 Rs. 5000 Rs. 7500 Rs. 10750 Rs. 12500 Rs. 20000 Rs. 22500 Rs. 27500 Rs. 32500 Rs. 62500 Rs. 76250 Rs. 155000
Up to 250 Rs. 5000 Rs. 7500 Rs. 10750 Rs. 12500 Rs. 20000 Rs. 22500 Rs. 27500 Rs. 32500 Rs. 40000 Rs. 78750 Rs. 126250 Rs. 187500
Up to 500 Rs. 15000 Rs. 22500 Rs. 23750 Rs. 25000 Rs. 27500 Rs. 35150 Rs. 41450 Rs. 46875 Rs. 84375 Rs. 105525 Rs. 164450 Rs. 243750
Up to 1000 Rs. 22500 Rs. 23750 Rs. 25000 Rs. 30750 Rs. 35625 Rs. 41700 Rs. 46875 Rs. 58575 Rs. 91700 Rs. 112500 Rs. 180450 Rs. 253500
Up to 2000 Rs. 23750 Rs. 25000 Rs. 30750 Rs. 41750 Rs. 46875 Rs. 59375 Rs. 62750 Rs. 67750 Rs. 98450 Rs. 119825 Rs. 189000 Rs. 262500
Up to 5000 Rs. 30750 Rs. 41750 Rs. 45000 Rs. 47750 Rs. 50000 Rs. 62750 Rs. 67750 Rs. 70375 Rs. 112500 Rs. 128875 Rs. 205000 Rs. 276750
Up t0 10000 Rs. 45000 4 Rs. 47500 Rs. 50000 Rs. 62750 Rs. 66750 Rs. 70375 Rs. 112500 Rs. 128875 Rs. 152500 Rs. 205000 Rs. 228250 Rs. 302500
Up to 25000 Rs.67750 Rs. 70375 Rs. 112500 Rs. 128875 Rs. 152500 Rs. 205000 Rs. 228250 Rs. 252750 Rs. 275000 Rs. 302500 Rs. 400000 Rs. 425000
Above 25000 Rs. 70375 Rs. 128875 Rs. 152500 Rs. 205000 Rs. 228250 Rs. 252750 Rs. 275000 Rs. 327500 Rs. 400000 Rs. 422500 Rs. 425000 Rs. 450000

Documents Required for Building Plan Approval

The required documents are to be produced for the approval of your building plan.

  • In case of change of Directors-Form 32 of the Companies Act
  • A brief description of the Manufacturing process and Flow process chart
  • Land papers of the factory
  • Proof of Partnership Deed
  • NOC from State Pollution Control Board
  • NOC from Forest department
  • Permission from the Mining department
  • List of Plant and Machinery
  • List of Raw Materials
  • Map of Factory building including Site plan, Plan elevation and all constant cross-section.

Documents Required for Factory License

The excepted documents are to be submitted along with the application form of factory licensing.

  • Land papers of the factory
  • NOC / Licence of the concerned department (for Saw-mill Explosives arms and ammunition)
  • Company Memorandum of Association and article
  • List of Present Directors if there is a change in director form 12/32 of the Companies Act
  • List of Board of Directors and Relevant paper regarding their appointment
  • Proof of Partnership Deed
  • List of Plant and Machinery
  • List of Raw Materials
  • Letter of appointment of occupier from the concerned ministry (If the government owned)
  • Certificate regarding the appointment of the occupier
  • In case of LLP / Joint venture MOA relevant paper
  • Project Report
  • NOC from State Pollution Control Board

Online Factory Registration Procedure

To factory registration in Bihar, follow the steps specified below.

Before licensing for the factory, the applicant has to request for a building plan approval online.

Application Procedure for Building Plan Approval

To get building plan permit for the factory, follow the steps explained here.

Visit the Labour Resources Department

Step 1: Please visit the official home screen of the Labour Resources department of Bihar.

Provide Login Details

Step 2: Click on “Login” button which is present on the current page.

Bihar Factory License - Image 1

Bihar Factory License – Image 1

Existing User Registration

Step 3: In the case of the existing user, the applicant has to provide login details such as username and password and click on the “Login” button.

New User Registration

Step 4: If in case of a new user, then the applicant has to click on “Register Yourself” button the application form for new user registration will appear on the next screen.

Provide Applicant Details

Step 5: The user registration form has to be filled with details such as

  • Applicant name
  • Mobile number
  • State of the applicant
  • Email id
  • Password

After entering the above details then you need to click on the “Validate” button.

Bihar Factory License - Image 2

Bihar Factory License – Image 2

Step 6: The page will be redirected to the login page, provide your login details to proceed further.

Bihar Factory License - Image 3

Bihar Factory License – Image 3

Select List of Services

Step 7: The applicant has to click on List of Services offered across the country from that select the appropriate service (application for permission to construct, extend or take into use any building as a factory(Form 1)).

Application Form 1

Step 8: Now, click on Application form option to apply for building permits for the factory.

Step 9:  On clicking the application form the following page will appear. Here the information regarding the factory need to be filled up, such as Name, Email, Mobile no, Factory name, Region, Division, District, Village, Factory type, etc. After filling the factory, details click on the agree button.

Bihar Factory License - Image 4

Bihar Factory License – Image 4

Upload Documents

Step 10: You need to attach the Documents in the given drop-down list Documents to be Attached. The documents can be browsed and attached by clicking the Upload button. After attaching the documents click on Continue to proceed.

Make Payments

 Step 11: In the Payment Details page enter the appropriate details and now the fee to be paid will be automatically calculated and displayed. Click on make payment button to go forward with payment.

Step 12: After making a payment click on the “Submit” button to complete the application procedure and then the applicant will be received with the receipt number for further reference.

Note: After registering for site approval, the application will be forwarded to the Site Appraisal committee. The site committee after verification will process to the state government. The Government will consider the recommendation of the Site Appraisal Committee and grant permission within ninety days from the date of application received. The Government may ask for the additional report from the Site Appraisal Committee for its satisfaction.

Application Procedure for Factory License

Step 1: The applicant has to follow the same process to login into the portal and click the respective service (Application for Registration and grant of license of the factory (Form-2)).

Step 2: Click on Application form option to apply for the license for the factory.

Provide Factory Details

Step 3: On clicking the license request the following page will be displayed. In Factory Details form – Fill up all the details of the factory in the below form. After completing the details click on the agree button to proceed.

Bihar Factory License - Image 5

Bihar Factory License – Image 5

Upload Documents

Step 4: You need to attach the Documents in the given drop-down list documents to be attached. The documents can be browsed and attached by clicking the Upload New Document button. The attached documents can be viewed in the below Document View list. After attaching the documents click on Continue to proceed.

View Payment Details

Step 5: In the Payment Details page enter the appropriate details and now the fee to be paid will be automatically calculated and displayed. Click on make payment button to go forward with payment.

Make Payment Online

Step 6: After making a payment click on the “Submit” button to complete the application procedure and then the applicant will be received with the receipt number for further reference.

Note: After applying online the concerned authority will check and verifies the information given in the form. Upon verification process, the application will forward to the next level for processing for inspection. If satisfied in the inspection, the Chief inspector will grant the factory license within sixty days from the date of application.

Renewal of License

The expired license has to renewed by applying for renewal (application form no-2) in the same registration process as mentioned above.

Transfer of License

The holder of a license may apply at any time before the expiry of the grant, request for permission to transfer his permit to another person.

Such application should be made to the Chief Inspector, who will approve of the transfer, enter upon the grant, under his signature, an endorsement to the effect that the license has been transferred to the person named. The prescribed fee of one hundred rupees will be charged on each such application.

The person to whom the license is so transferred can avail the same powers, and be subject to the same obligations under the license as the original holder.

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