Factory License Consultant in India
A Factory License Consultant in India provides professional assistance for obtaining and maintaining a factory license under the Factories Act, 1948. Any manufacturing unit employing the prescribed number of workers and using power must register with the concerned State Labour Department before commencing operations. A consultant helps businesses with the complete process, including document preparation, factory plan approval, application filing, compliance with safety norms, and coordination with government authorities.
Factory License Registration Under Factories Act, 1948
Factory License Registration under the Factories Act, 1948 is a mandatory legal requirement for manufacturing units operating in India. Any premises where manufacturing activities are carried out with the prescribed number of workers—especially when power is used—must obtain approval and registration from the concerned State Labour Department before commencing operations.
The registration process involves submission of detailed documents such as factory layout plan approval, identity and address proof of the occupier/manager, machinery details, worker strength information, and safety compliance declarations. Authorities may conduct inspections to verify compliance with health, safety, and welfare provisions prescribed under the Act.
The primary objective of factory license registration is to ensure safe working conditions, proper ventilation, sanitation, fire safety measures, and worker welfare facilities within the manufacturing premises. Non-registration or non-compliance may result in penalties, fines, or legal action.
By obtaining a factory license, businesses ensure lawful operations, avoid regulatory complications, and maintain compliance with labour and industrial safety regulations in India.
Eligibility Criteria for Factory License
- Minimum 10 workers with power OR 20 workers without power engaged in manufacturing activities.
- The unit must carry out a defined manufacturing process (assembling, processing, packing, repairing, etc.).
- Legal ownership or valid lease agreement of the factory premises is required.
- Approved factory building plan from the competent authority.
- Compliance with safety, health, and welfare standards under the Factories Act.
- Provision of proper ventilation, lighting, sanitation, and drinking water facilities.
- Installation of fire safety equipment and emergency measures.
Who Needs a Factory License in India?
A Factory License in India is required for any premises where a manufacturing process is carried out and the number of workers meets the threshold prescribed under the Factories Act, 1948. If a unit employs 10 or more workers with the use of power, or 20 or more workers without the use of power, it is legally classified as a factory and must obtain registration and license from the concerned State Labour Department before commencing operations.
This requirement applies to various types of manufacturing businesses, including private limited companies, partnership firms, proprietorship concerns, LLPs, and MSMEs engaged in production, processing, assembling, packing, or repairing goods. Industries such as textiles, engineering units, food processing, pharmaceuticals, chemical manufacturing, and fabrication units typically fall under this category.
Any business setting up machinery and employing workers for commercial production must ensure compliance with factory licensing provisions. Operating without a valid factory license can lead to penalties, fines, or legal action. Therefore, obtaining a factory license is essential for lawful operations, worker safety compliance, and smooth functioning of manufacturing units in India.
Factory License Renewal & Compliance
Mandatory Renewal: Factory license must be renewed before expiry to continue manufacturing operations legally.
Applicable Under Factories Act, 1948: Renewal is required as per state labour department regulations under the Act.
Timely Application Submission: Renewal application should be filed before the due date to avoid penalties or late fees.
Payment of Government Fees: Prescribed renewal fees must be paid based on worker strength and installed horsepower/machinery.
Updated Factory Details: Submit updated information regarding workers, machinery, production capacity, and occupier/manager details.
Compliance Verification: Authorities may conduct inspections to ensure compliance with safety, health, and welfare standards.
Maintenance of Statutory Registers: Proper records of attendance, wages, working hours, and accident registers must be maintained.
Safety & Welfare Measures: Ensure fire safety equipment, ventilation, sanitation, drinking water, and first-aid facilities are in place.
Avoid Legal Penalties: Non-renewal or non-compliance may result in fines, prosecution, or suspension of factory operations.
Ensures Smooth Operations: Timely renewal and compliance help maintain lawful business operations without interruptions.
Documents Required for Factory License
Duly filled Factory License Application Form
Approved Factory Layout / Building Plan
Identity & Address Proof of Occupier / Directors / Partners
Proof of Ownership or Registered Lease Agreement of Premises
Certificate of Incorporation / MOA & AOA (Company)
Partnership Deed (if applicable)
List of Directors / Partners with Details
Details of Manufacturing Process
Machinery Details with Installed Horsepower (HP)
Worker Strength Details
Electricity Bill / Power Load Sanction Letter
Fire NOC (if applicable)
Stability Certificate (if required)
NOC from Local Authority (if required)
Factory License Application & Approval Process
MSME & Private Limited Company Factory License
MSMEs and Private Limited Companies engaged in manufacturing must obtain a Factory License if they employ 10 or more workers with power or 20 or more workers without power, as per the Factories Act, 1948. Registration with the State Labour Department is mandatory before starting operations.
MSMEs need the license to ensure legal compliance and eligibility for government benefits, while Private Limited Companies must submit incorporation documents, director details, and appoint an occupier/manager. A valid factory license ensures lawful operations and avoids penalties.