Last updated: December 17th, 2019 6:00 PM

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. [caption id="attachment_71080" align="aligncenter" width="659"] 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. [caption id="attachment_71081" align="aligncenter" width="639"] Bihar Factory License - Image 2 Step 6: The page will be redirected to the login page, provide your login details to proceed further. [caption id="attachment_71082" align="aligncenter" width="681"] 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. [caption id="attachment_71085" align="aligncenter" width="634"] 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. [caption id="attachment_71087" align="aligncenter" width="623"] 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. Know more about Bihar Trade license Click Here