Application for Transfer of License of Factory in Bihar
Statutory Conveyance Procedure, Form-XXVI Portal Submission, Legal Succession & Regulatory Compliance Under Bihar OSH Rules, 2026
When a manufacturing plant undergoes a corporate acquisition, lease assignment, change in partnership constitution, or legal succession, the operational factory license does not automatically follow the underlying transaction. Under the Occupational Safety, Health and Working Conditions Code, 2020 read with the Occupational Safety, Health and Working Conditions (Bihar) Rules, 2026 (notified vide Bihar Gazette No. 699, dated 1 July 2026), any change in legal personhood, proprietary interest, or lawful possession of an industrial establishment requires a formal transfer endorsed by the Directorate of Factories, Labour Resource Department, Government of Bihar.
Statutory Triggers: When Is a Factory License Transfer Required?
A formal transfer application is mandatory whenever lawful possession and ultimate control over the affairs of the factory transition from one legal entity to another:
Outright Sale & Asset Takeovers
Slump sales, asset-purchase agreements, or business acquisitions where manufacturing machinery, shed infrastructure, and premises are legally conveyed to a new proprietor, partnership, or company.
Mergers, Demergers & NCLT Schemes
Structural corporate reorganizations sanctioned under the Companies Act, 2013, where an operational factory unit transitions from a transferor corporation to a resulting or amalgamated enterprise.
Lease Assignments & BIADA Rights
Conveyance of plant tenancy through long-term registered lease covenants or formal assignment of BIADA plot allotment and possession rights to an incoming manufacturing entrepreneur.
Reconstitution of Partnership / LLP
Substantial alteration in governing partner rosters, total partner retirement with incoming replacements, or conversion of a traditional partnership firm into an LLP or Private Limited corporate body.
Testamentary or Legal Succession
Transmission of factory ownership, operating assets, and management credentials to designated legal heirs or court-appointed administrators following the demise of an individual occupier or sole proprietor.
Auction & Involuntary Conveyance
Acquisition of stressed manufacturing premises through Bank Auctions, Debt Recovery Tribunal (DRT) proceedings, SARFAESI asset liquidations, or Court-decreed executions where predecessor NOC is unavailable.
Statutory Distinction: Transfer vs. Amendment
Filing under the incorrect statutory gateway leads to procedural invalidation and inspection delays. Distinguish between operational alterations and title conveyances:
Form-XXV: License Amendment
Same Legal Entity • Internal Changes
Applies when the same corporate or proprietorship entity retains operational control, but modifies internal parameters such as installing additional machinery power (HP/KW), expanding workforce ceiling bands, re-titling a trade name, or replacing an internal factory manager.
Form-XXVI: License Transfer
New Legal Entity • Title Conveyance
Applies when the underlying legal ownership, tenancy, or occupancy rights transfer from the current holder (transferor) to an entirely different legal entity or individual (transferee) through commercial sale, assignment, merger, inheritance, or auction conveyance.
Step-by-Step License Transfer Protocol
Due Diligence & Arrears Audit
Verify the transferor establishment has no pending statutory fines, inspection show-cause orders, or worker compensation arrears. Confirm civil layouts match endorsed Form-XXII architectural plans.
Fresh Stability Certification
Under Rule 64(3), the incoming occupier must obtain a fresh Structural Stability Certificate executed by a Competent Person chartered under Bihar Rule 2, validating load safety under intended operations.
Portal E-Filing of Form-XXVI
Log in to the Bihar Single Window Clearance System (SWCS). Access the transfer portal, link the active license number, populate Form-XXVI, and upload conveyance deeds, mutual NOC, and board authorizations.
Treasury Transfer Fee Payment
Pay the prescribed statutory license transfer fee electronically through the state cyber treasury portal (OGRAS). An instant e-challan receipt is linked to the application dossier.
Re-Issued Form-XXIV Grant
Following verification by the Inspector-cum-Facilitator, the Directorate re-issues the Form-XXIV certificate bearing the transferee’s legal name, carrying forward the unexpired 10-year validity term.
Mandatory Document Checklist for Form-XXVI
Keep the following corporate, civil, title, and environmental records verified before initiating portal submission:
Conveyance & Title Instruments
- Registered Sale Deed, Deed of Assignment, Registered Lease Agreement, or BIADA Possession Transfer Certificate.
- Certified copy of NCLT Sanction Order (in cases of corporate mergers, demergers, or amalgamations).
- Formal Succession Certificate or Legal Heirship Affidavit (in cases of inheritance or demise of an individual occupier).
Transferee Corporate Records
- Certificate of Incorporation, LLP Agreement, or Partnership Deed and Corporate PAN Card of the incoming entity.
- Board Resolution or Partner Letter of Authority appointing the incoming designated Occupier and Factory Manager.
- Identity proof (PAN Card/Voter ID) and address verification of the incoming Occupier and Factory Manager.
Existing License & Civil Proofs
- Original or latest renewed Form-XXIV Factory License certificate held by the transferor entity.
- Sanctioned Form-XXII Building Plans showing the legally recognized manufacturing floor boundaries.
- Fresh Structural Stability Certificate issued by an empaneled Competent Person under Rule 64(3) in the transferee’s name.
Environmental, Utilities & Mutual NOC
- Transferred or fresh Consent to Operate (CTO) from Bihar State Pollution Control Board (BSPCB) in the transferee’s name.
- Updated Fire Safety Recommendation / Fire NOC issued by Bihar Fire Services.
- Electricity meter transfer endorsement or revised load agreement from NBPDCL or SBPDCL.
- Joint No-Objection Certificate (NOC) and statutory undertaking affirming full compliance with Bihar OSH Rules, 2026.
Interconnected Industrial Compliance Services
A factory license transfer connects directly with multiple compliance workflows across the operational lifecycle:
Baseline Factory Registration
If the predecessor plant was never formally licensed or has lapsed beyond 2 years, apply via our Registration & Grant of License protocol under Form-XXIII.
Upcoming Expiry Realignment
If the transferred license is nearing expiry, synchronize conveyance with our License Renewal workflow under Rule 64(6) to secure the subsequent 10-year tenure.
Legacy Entity Regularization
Pre-2026 licenses issued under the repealed 1950 rules must first complete digital profile updates via our Digitization of Existing Factories pathway under Rule 3(3).
Permanent Plant Cessation
If a transaction involves stripping machinery and permanently stopping manufacturing at the location, formal legal surrender must be executed via our Notice of Closure under Form-IV.
Common Rejection Pitfalls & Remediation
Avoid administrative delays and show-cause inspection notices by maintaining strict alignment:
Unsynchronized Pollution Consents
Submitting Form-XXVI without obtaining an updated CTO from the BSPCB in the new entity’s name results in departmental scrutiny holds.
Pending Predecessor Dues
Outstanding inspection compounding fines or unsubmitted annual returns from the transferor will stall approval until cleared.
Unregistered Lease Documents
Submitting notarized agreements rather than registered lease deeds or formal BIADA transfer authorizations leads to immediate portal rejection.
Omission of Stability Certification
Omitting a fresh structural stability certificate under the pretext that the civil shed was unchanged; Rule 64(3) mandates an active certificate under the transferee’s filing.
Frequently Asked Questions
Statutory clarifications on Bihar factory licence transfers & Form-XXVI procedures
No. A transfer under Form-XXVI endorses the incoming occupier into the active Form-XXIV license for the unexpired duration of the existing 10-year term. Once that block concludes, the transferee files for a standard multi-year renewal under Rule 64(6).
Yes, provided the plant’s approved layout, power rating, and workforce ceilings remain strictly within sanctioned limits, and the transfer application with mutual NOC was lodged prior to the formal operational handover date.
If a handover occurs via bank auction, Debt Recovery Tribunal (DRT) proceedings, SARFAESI action, or court decree, certified copies of the official sale certificate and possession handover order can be submitted in lieu of the outgoing occupier’s voluntary signature.
No. If the corporate entity owning the plant remains identical and only an individual director or factory manager steps down or is appointed, file an Application for Amendment of License under Form-XXV, not a full license transfer.
Execute Your Factory License Transfer with Zero Regulatory Interruption
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