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Are you aware of all the legal formalities you will have to get done to set up a new factory in India? Did you know you have to get a Factory licence registration to establish a factory anywhere in India? If all these questions are stressing you, Legal Infinix is here to help you get relief from this stress. Here, you will get all the information you require for the Factory license registration, Factory license renewal, Factory License fees, and Factory licence renewal fees. Contact our Factory License Consultant to clear any doubts about the online Factory Registration in India.
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What Is Factory Licence Registration?
A factory license is a legal permit issued by the government that is required to set up and operate a manufacturing facility to avoid any legal cases, penalties, and fines. Having a factory licence signifies that the factory is equipped with all the required safety regulations, statutory requirements, and obeys all the labour laws.According to the Factory Act Licence, 1948, any premises that carry out the manufacturing processes employing 10 or more workers with the aid of power, or employing 20 or more workers without power, will need to obtain a Factory Act licence.
Connect with us to get your Factory registration certificate fast.
Why Is Factory Registration Online Important?
As mentioned in the Factories Act, 1948, anyone operating a manufacturing facility will face legal action. This simply makes the Factory licence registration a compulsory document to have. Factories running without registration can face legal issues like imposing heavy fines, penalties, and even lead to imprisonment.The government is pressuring Factories to obtain a legal licence because having a factory licence registration ensures that the factory is running with all the appropriate safety standards. So that the employees' health and well-being will not be compromised. Not only this, but the licence also validates the operational authenticity of the business, which makes other approvals, participation in government tenders, and licences easy to secure.
All these things make an MCD Factory licence registration a crucial aspect for the factory owners to set up or operate a manufacturing plant in India.
Connect with us now to get an MCD license for factory!
Advantages Of A Factory Licence Registration
Legal Recognition & Protection - A legal licence for a factory is the symbol that your factory has been recognised by the law, and this symbol will give your factory protection from legal complications and shutdowns due to non-compliance.
Ensure Safety & Welfare at Workplace - The licence minimises accidents by mandating the follow-up of all the safety standards and employee welfare regulations, which improves the satisfaction of employees.
Helps in Expansion & Investment - The investors prefer factories with a legal validation, thus a license will help factories in raising funds, expand their operational hassle-free, or enter into contracts.
Access to Government Schemes - Government schemes, subsidies, and certification will only be used by the factories that are recognised by the government authorities.
Improves Reputation & Builds Trust - Your factory's credibility gets enhanced among the stakeholders and investors, such as customers, vendors, government bodies, and suppliers.
Avoidance of Penalties - It safeguards from falling into any kind of legal actions, fines and potential shutdowns due to non-compliance.
We can help you with the Factory licence apply online, and make your factory registration process easy and simple. Call now!
Eligibility Criteria For A Factory Licence Online
If a factory meets these points, then it is eligible for the factory licence registration:- Factories with 10 or more workers, with the aid of power.
- Manufacturing unit with 20 or more workers operating without using power.
- Factories engaged in hazardous processes or dangerous operations as defined under the law.
- Startups and MSMEs involved in the production, processing, or assembling of goods
- Importers are establishing a local manufacturing facility in India.
- Premises using machinery or power-driven tools for producing or modifying goods.
- Public or private sector enterprises that fall under the definition of a "factory" in the Factories Act, 1948.
- Industrial warehouses use machinery for processing, altering, repackaging, or handling goods.
- Export-Oriented Units (EOUs) are involved in any manufacturing activity.
- Entities that require pollution control or fire safety clearance due to operational risks are also subject to stricter regulatory oversight.
We can assist you with online factory licence renewal. And also provide help in getting factory license for construction site.
Documents Required For Online Registration Of Factory Licence
Documentation is the most crucial part of the factory license application process. If you miss or submit any wrong documents, then your factory license application process will take more than usual because of the delay due to the wrong or missing documents.So it is good to double-check all the documents before submitting. We have mentioned the list required for the online factory license registration process. Documents required are:
- Building Plan Approval
- Layout Plan as per the Factories Act
- KYC Documents of Owners/Directors (Email id, Mobile No., PAN, Aadhaar, Voter id, Bank Statement, etc.)
- Incorporation documents (COI, Partnership Deed, LLP Agreement, etc.)
- Sale Deed/ Rent Agreement of premises.
- Sanctioned load from the authority / Latest Electricity Bill
- DPCC NOC
- Structural Stability certificate from an approved architect
- Fire NOC (for premises above 250 sq metres)
- Property Tax Receipt
- Manufacturing process flow chart
We have a team of professional Factory license consultant who can help you with the factory licence apply online. Go ahead and make a call now!
How to Apply for Factory Licence Registration?
Registration for a Factory license has become easy nowadays. You can simply apply for Factory license through the state’s single Window clearance system or the Labour Department’s portal. Follow these steps carefully to apply factory license online:Step 1: Obtain Factory Plan Approval
First, you have to submit the building plan of your factory with the architectural drawings to the state labour department for approval to ensure the structure meets all the safety and health standards.Step 2: Submit Notice of occupation (Form 1)
At least 15 days before occupying the premises, you must submit a formal Notice of Occupation (typically Form 1) to the Chief Inspector of Factories. This informs them about your intention to commence factory operations.Step 3: Online Application for License (Form 2)
Visit the official online portal of your state's Labour Department or Directorate of Factories and Boilers. For instance, for an MCD factory license, you would typically visit the Municipal Corporation of Delhi's portal. Similarly, for areas falling under the SDMC factory license or the EDMC factory license, you would use their respective online platforms.- Register and log in to the portal.
- Fill out the factory licence registration application form (usually Form 2) with accurate details about your factory, occupier, manager, workers, machinery, and manufacturing process.
Step 4: Upload Documents
Attach all the required documents as per the checklist, ensuring they are in the prescribed format and size.Step 5: Pay Factory License Fees
Pay the applicable factory license fees online through the portal's payment gateway. The fee structure depends on factors like the number of workers and the total horsepower of installed machinery.Step 6: Scrutiny and Inspection
The submitted application and documents undergo scrutiny by the authorities. An Inspector of Factories may conduct a physical inspection of your factory premises to verify compliance with safety, health, and welfare provisions.Step 7: Grant of Factory License Certificate
If your application, documents, and inspection results are satisfactory, the Chief Inspector of Factories will approve your application and issue the factory licence certificate.Are you also looking for the Fire NOC Delhi, Fire NOC in Haryana, Fire NOC Uttar Pradesh? If yes, then register your query now!
Factory Licence Fees, Penalties, and Timeline
The fee structure for the factory license online registration varies depending on the state you are setting up your factory. Here is the average fee structure:| Category | Details | Amount |
|---|---|---|
| Application Fee (New License) | Payable at the time of filing the initial factory license application. | Rs. 300 to Rs. 10,000 (varies by state and workforce size) |
| License Renewal Fee | Paid annually or as per state norms for renewal of factory license. | Rs. 1,000 to Rs. 15,000 |
| Amendment Fee | When changes are made to the license, such as a change in the number of workers, machinery, etc. | Rs. 100 to Rs. 1,000 |
| Late Fee for Renewal | If a renewal application is filed after the due date but before expiry. | 25%–50% of the renewal fee is extra |
| Penalty for Operating Without a License | Penalty for running a factory without a valid license under Section 85 of the Factories Act. | Up to Rs. 1,00,000 or imprisonment up to 2 years |
| Penalty for Breach of Safety Rules | Failure to comply with safety standards and protocols. | Rs. 1,00,000 or imprisonment or both |
| Penalty for Non-Maintenance of Records | For not maintaining health, safety, and employment records as per the law. | Rs. 10,000 to Rs. 50,000 |
| Inspection Non-Compliance Fine | Penalty for obstructing or failing to cooperate during factory inspections. | Rs. 25,000 to Rs. 75,000 |
| Environmental Clearance Violation | In case of a lack of proper consent/NOC from the Pollution Control Board. | Rs. 50,000 to Rs. 2,00,000 or closure |
Penalties
Operating a factory without a valid licence can lead to fines up to ₹1,00,000 or imprisonment up to 2 years. Delayed renewal attracts a late fee of 25% of the fee payable for a calendar year, which is charged when the renewal application has been submitted in the office after expiry of the time limit; i.e., after 30 days before the due date of expiry of the Licence. The system will auto-calculate the total fee, including the late fee, which has to be deposited online.Timeline
Standard Processing Time -Typically, the registration of a Factory Licence may take around 15 to 18 working days, depending on document readiness, application filing and government processing time.Factory Licence Renewal Online
A factory act license registration is not a one-time process; you have to renew it after every specific duration to work freely without any legal objection.Renewal Fee
- Within April (grace period):
- License Fee = HP-rate × Total HP
- Permission Fee = Unit Charge (₹1000) + License Fee
- Processing Fee = 50% of License Fee
- Transaction Fee = ₹10
- Convenience Fee = 2.5937% of Total Amount
- After April (up to year-end):
- Same as above plus: Late fee = ₹150 (for first 3 months) + 5% of license fee per additional month
- Beyond one year:
- Above charges + Arrear = ₹2,000 flat
Amendment Fee
- Processing Fee = ₹550 + 2.5937% Convenience Fee
- Registration Charges = Nil
- Amendment fee proper: Assessed by MCD officials at approval
| Aspect | Details |
|---|---|
| Initial Validity | Typically valid for 1 year; some states may allow licenses for up to 5 years. |
| Renewal Period | Must be renewed annually or before the expiry date, depending on state rules. |
| Renewal Window | Usually begins 30 to 90 days before the license expiry date. |
| Late Renewal | May attract penalties or require additional approvals. |
| Renewal Process | Submit renewal application online/offline with updated documents and fees. |
Factory Licence Certificate
The Factory License Certificate is an official document issued under the Factories Act, 1948, authorising an industrial unit to begin manufacturing operations. It confirms that your factory complies with labour, safety, and health regulations set by the state’s Chief Inspector of Factories.
The certificate typically includes:
It is a legal prerequisite before any production can commence.
- Your factory name
- License number
- Location
- Number of workers allowed
- Type of manufacturing
- Validity period.
Why choose us?
The factory licence registration process may seem easy, but a single mistake can cause a delay in the process. which will be a waste of time to save any possible rejection, you will need a professional factory license consultant who will guide you throughout the process.Legal Infinix have a team of expert legal advisors who will provide you with comprehensive support from the beginning of the factory licence online application to the renewal of factory license online, to ensure your error-free applications.
So don't waste more time, call us now and get your factory registered as soon as possible!
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