Factory Operations: Is a Panchayat Running License Really Necessary?

Dear Seniors,

Is a Panchayat Running license mandatory to operate the factory?

Rajesh S.

Dear Rajesh,

Yes, it is required to have a license. Usually, it is called a General License. There will be a government fee for the same. As per the Tamil Nadu Panchayats Act, 1994 [Tamil Nadu Act 21 of 1994], Chapter XI - General and Miscellaneous Licences and Permissions, Section 220, General provisions regarding licences and permissions, you need to obtain a license. There are many case laws available on the same as well.

Apart from that, there will be a Property Tax based on your area of construction and type of construction, and accordingly, you need to pay the property tax.

Hope you have understood.

With regards,

Chidananda L R

[Phone Number Removed For Privacy-Reasons]

The registration, license, and approval of local authorities are necessary under relevant acts. These include Professional Tax, pollution control, labor license, construction license, water and sanitation, electricity, and disposal of waste/construction waste, etc.

Yes, it is required.

In addition to the license under the Factories Act, for which you need to submit the application for renewal on or before the 31st of October every year, you also need to submit your application for the renewal of the Panchayat license on or before the last working day of February every year.

Regards,

MVK