Factory Licence
A Factory Licence is a mandatory document required for any manufacturing facility to operate legally in India, including in Vijayawada, Andhra Pradesh. It is issued by the relevant state government authorities, in this case, the Directorate of Factories, under the provisions of the Factories Act, 1948, and the Andhra Pradesh Factories Rules, 1950.
The primary purpose of the Factory Licence is to ensure that factories comply with regulations related to safety, health, welfare, and working conditions of the employees, as well as environmental protection standards.
Applicability: Who Needs a Factory Licence?
As per the Factories Act, 1948, and generally followed by Andhra Pradesh Factories Rules, a factory licence is required for premises that meet either of the following criteria:
- 10 or more workers are employed in manufacturing activity with the aid of power.
- 20 or more workers are employed in manufacturing activity without the aid of power.
Even smaller establishments might need a licence depending on the nature of their manufacturing process (e.g., hazardous processes).
Objectives and Benefits of Obtaining a Factory Licence:
- Legal Compliance: It's a mandatory legal requirement to operate a factory and avoid penalties under the Factories Act.
- Worker Safety and Welfare: Ensures the factory adheres to safety regulations, providing a secure working environment and promoting the health and well-being of workers through mandated facilities (like first aid, canteens, restrooms, etc.).
- Environmental Protection: Helps in regulating and managing waste disposal and other environmental concerns related to manufacturing activities.
- Enhanced Credibility: Having a factory licence enhances the credibility and trustworthiness of the business with stakeholders, including clients and partners.
- Eligibility for Other Approvals: It often serves as a prerequisite for obtaining other necessary licenses and approvals.