Under factories act 1948 , the procedure for licensing and registration is given under various sections. Its procedure is as following :-

Section 6 empowers the State Government to make rules with regard to licensing and registration of factories under the Act on following matters:

1. submission of plans of any class or description of factories to the Chief Inspector or the State Government;
2. obtaining previous permission of the State Government or the Chief Inspector, for the site on which factory is to be situated and for construction or extension of any factory or class or description of factories. However, replacement or addition of any plant or machinery within prescribed limits, shall not amount to extension of the factory, if it does not reduce the minimum safe working space or adversely affect the environmental conditions which is injurious to health;
3. considering applications for permission for the submission of plans and specifications;
4. nature of plans and specifications and the authority certifying them;
5. registration and licensing of factories;
6. fees payable for registration and licensing and for the renewal of licences;
7. licence not to be granted or renewed unless notice specified under Section 7 has been given.

If an application is made for the approval of site for construction or extension of the factory and required plans and specifications have been submitted by registered post to the State Government or the Chief Inspector and if no reply is received within three months from the date on which it is sent the application stands automatically approved [Section 6(2)]. Where the rules require the licensing authority to issue a licence on satisfaction of all legal requirements/record reasons for refusal. Licence could not be refused only on a direction from Government. (S. Kunju v. Kerala, (1985) 2 LLJ 106).

If the State Government or Chief Inspector do not grant permission to the site, construction or extension of a factory, or to the registration and licensing of a factory, the applicant may within 30 days of the date of such refusal appeal to:

1. the Central Government against the order of the State Government;
2. the State Government against the order of any other authority.

Section 7 imposes an obligation on the occupier of a factory to send a written notice, containing prescribed particulars, to the Chief Inspector at least 15 days before an occupier begins to occupy or use a premises as a factory and at least 30 days before the date of resumption of work in case of seasonal factories, i.e. factories working for less than 180 days in a year.

A notice must contain following particulars:

• The name and situation of the factory.
• The name and address of the occupier.
• The name and address of the owner of the premises or building (including the precincts, etc., thereof referred to in Section 93).
• The address at which communication relating to the factory should be sent.
• The nature of manufacturing process to be carried on in the factory during next 12 months.
• The total rated horse power installed or to be installed in the factory which shall not include the rated horse power of any separate standby plant.
• The name of the Manager of the factory for the purpose of this Act.
• the number of workers likely to be employed in the factory.
• Such other particulars as may be prescribed.

Notice where new manager is appointed Whenever a new manager is appointed, the occupier shall send to the Inspector a written notice and to the Chief Inspector a copy thereof, within seven days from the date on which such person takes over charge.

During a period for which no person has been designated as Manager of a factory or during which the person designated does not manage the factory any person found acting as manager, will be the manager for the purposes of the Act. Where no such person is found the occupier should be deemed to be the manager of the factory.