Factory License Registration in India
Ensure your manufacturing unit operates legally and safely with a Factory License from Tax Pal Solutions, compliant with the Factories Act, 1948.
What is a Factory License?
A Factory License is an official permit allowing a business to operate a manufacturing facility while ensuring compliance with:
- Labor Laws – State & central regulations under the Factories Act, 1948
- Safety Norms – Fire safety, machinery, and occupational health standards
- Environmental Compliance – Pollution control and waste management
- Operational Legality – Prevents penalties, shutdowns, or legal action
This license is essential for factories using power or machinery, handling hazardous processes, or employing a defined workforce.
Benefits of Factory License
- Legal Compliance – Avoid fines and government enforcement actions
- Worker Safety – Safer workplace, reduced accidents, enhanced productivity
- Enhanced Credibility – Builds trust with clients, investors, and authorities
- Business Opportunities – Eligibility for government contracts & tenders
- Environmental Responsibility – Compliance with pollution & waste management norms
- Worker Welfare – Promotes safe conditions, fair hours, and essential amenities
Who Needs a Factory License?
- Manufacturing units with ≥10 workers using power
- Units with ≥20 workers without power
- Units engaged in hazardous processes (as per Schedule I of Factories Act)
- Startups & MSMEs in production, processing, or assembly
- Public or private sector factories, warehouses, EOUs
- Units requiring pollution control or fire safety clearance
Required Documents for Factory License
| Document | Description |
|---|---|
| Factory Layout Plan | Approved building plan with machinery & workflow |
| Site Plan | Map showing factory location, roads, and nearby structures |
| List of Machinery | Details of machines, HP, and installation |
| Identity Proof | Aadhaar/PAN/Passport of occupier & manager |
| Address Proof | Electricity bill, rent agreement, or property tax receipt |
| NOC from Local Authorities | Municipal or Panchayat clearance |
| Pollution Consent | Environmental clearance from Pollution Control Board |
| Proof of Ownership/Lease | Registered property papers or lease agreement |
| Electricity Proof | Valid electricity connection document |
| Safety & Health Policy | Especially for hazardous processes |
| Fire Safety Certificate | Approval from local Fire Department |
| Worker List & Working Hours | Number of employees & shift schedules |
| Company Documents | Partnership Deed / MoA & COI for corporate entities |
| Hazardous Material Details | SDS & handling protocols if applicable |
| ESIC & EPF Registration | For applicable units |
Step-by-Step Factory License Registration
- Factory Plan Approval – Submit architectural drawings to State Labour Dept.
- Notice of Occupation (Form 1) – Submit 15 days prior to starting operations
- Online Application (Form 2) – Fill accurate factory details on state Labour portal
- Upload Documents – Attach required documents in prescribed format
- Pay Fees – Fees vary based on workforce size & machinery
- Inspection – Authorities verify safety, health, and welfare provisions
- Grant of License – Certificate issued by Chief Inspector of Factories
🔹 Factory License Fees & Penalties
| Category | Details | Amount |
|---|---|---|
| Application Fee | Initial license filing | Rs. 300 – 10,000 |
| Renewal Fee | Annual or as per state norms | Rs. 1,000 – 15,000 |
| Amendment Fee | Changes in workers, machinery | Rs. 100 – 1,000 |
| Late Renewal | Filed after due date | 25%–50% extra |
| Operating Without License | Violation under Section 85 | Up to Rs. 1,00,000 or 2 years imprisonment |
| Safety Rule Violation | Non-compliance with safety standards | Rs. 1,00,000 or imprisonment |
| Record Maintenance Violation | Non-maintenance of health & safety records | Rs. 10,000 – 50,000 |
| Inspection Non-Compliance | Obstructing inspections | Rs. 25,000 – 75,000 |
| Environmental Violation | Missing NOC/consent | Rs. 50,000 – 2,00,000 or closure |
Validity & Renewal
| Aspect | Details |
|---|---|
| Initial Validity | 1 year (up to 5 years in some states) |
| Renewal Period | Annually or as per state rules |
| Renewal Window | 30–90 days before expiry |
| Late Renewal | May attract penalties/additional approvals |
| Renewal Process | Submit online/offline with updated documents & fees |
Post-Registration Compliance
- Maintain Records – Attendance, wages, leaves, medical exams
- Adhere to Working Hours – Especially for women & young workers
- Health & Safety Measures – Ventilation, lighting, drinking water, first aid, fire safety, machinery guarding
- Annual Returns – File as required by state authorities
- Display Notices – Show abstracts of the Act, periods of work, safety info
- Report Accidents – Immediate reporting to authorities
- Periodic Inspections – Be ready for scheduled or surprise inspections
- Appoint Safety Officer – Mandatory for >1000 workers or hazardous processes
Factory License Certificate
The certificate includes:
- Factory Name
- License Number
- Location
- Number of Workers Allowed
- Type of Manufacturing
- Validity Period
Download Online:
- Log in to your state Labour Department or Single Window Portal
- Go to Download Certificate or View Licenses
- Select your approved application → Download PDF
Check Status:
- Visit the official portal → Application Status
- Enter reference number, factory name, or registration number
- View pending, approved, or rejected status
Certification
