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Factory License Registration in India
Setting up a factory in India involves more than installing machinery and hiring workers. One of the most critical legal requirements is obtaining a Factory Licence Registration under the Factories Act, 1948. At LegalInfinix, we simplify the entire process—from application to approval and renewal—so you can focus on running your manufacturing business without compliance stress. Our experts guide you through factory licence registration, renewal, applicable fees, penalties, inspections, and allied approvals such as Fire NOC and Pollution NOC across IndiaWhat is Factory Licence Registration?
A Factory Licence is a mandatory statutory approval issued by the State Labour Department or Directorate of Factories & Boilers. It authorises a manufacturing unit to legally carry out industrial operations and certifies compliance with labour laws, occupational safety norms, health regulations, and environmental standards. As per the Factories Act, 1948, factory registration is compulsory if:- 10 or more workers are employed with the aid of power, or
- 20 or more workers are employed without power.
Why is Factory Licence Registration Required?
Factory licence registration is a legal obligation for all eligible manufacturing units. The government enforces this requirement to ensure:- Safe working conditions for employees
- Compliance with health, welfare, and environmental norms
- Accountability of factory occupiers and managers
Benefits of Factory Licence Registration
Legal Compliance & Protection
A factory licence legally validates your operations and safeguards your business from penalties, shutdowns, and compliance disputes.Workplace Safety & Employee Welfare
Mandatory safety measures reduce industrial accidents and improve workforce productivity and morale.Business Growth & Investment Opportunities
Licensed factories gain easier access to funding, partnerships, and expansion opportunities.Government Benefits & Subsidies
Only licensed factories can avail government schemes, incentives, and industrial subsidies.Enhanced Business Credibility
Builds trust with investors, suppliers, customers, banks, and government authorities. LegalInfinix provides factory licence services across Delhi, Haryana, Uttar Pradesh, and other Indian states.Eligibility Criteria for Factory Licence Registration
You are eligible to apply for a factory licence if your unit falls under any of the following categories:- Manufacturing units employing 10+ workers with power
- Manufacturing units employing 20+ workers without power
- Factories involved in hazardous or dangerous processes
- Startups and MSMEs engaged in production or assembly
- Importers setting up manufacturing facilities in India
- Units using power-driven machinery or tools
- Public or private enterprises classified as factories
- Industrial warehouses involved in processing or repackaging
- Export-Oriented Units (EOUs)
- Units requiring Pollution Control Board or Fire Department clearance
Documents Required for Factory Licence Registration
Accurate documentation is essential to avoid delays or rejection. The key documents include:- Approved Building Plan
- Factory Layout Plan (as per Factories Act)
- KYC of Owners/Directors (PAN, Aadhaar, Email, Mobile, Bank Statement)
- Incorporation Documents (COI, Partnership Deed, LLP Agreement)
- Sale Deed or Rent Agreement
- Electricity Sanction Letter or Latest Bill
- Pollution Control Board (DPCC) NOC
- Structural Stability Certificate
- Fire NOC (mandatory if area exceeds 250 sq. metres)
- Property Tax Receipt
- Manufacturing Process Flow Chart
How to Apply for Factory Licence Registration Online?
Step 1: Factory Plan Approval
Submit architectural and building plans to the Labour Department for safety compliance.Step 2: Notice of Occupation (Form 1)
File Form 1 at least 15 days before commencing operations.Step 3: Online Application (Form 2)
Register on the State Labour Department or Factory Inspectorate portal (MCD/SDMC/EDMC as applicable) and complete Form 2.Step 4: Upload Documents
Attach all prescribed documents in the required format.Step 5: Payment of Fees
Pay factory licence fees online based on workforce size and machinery horsepower.Step 6: Inspection & Scrutiny
Authorities may conduct a physical inspection to verify compliance.Step 7: Issue of Factory Licence
Upon approval, the Factory Licence Certificate is issued digitally.Factory Licence Fees, Penalties & Timeline
Indicative Government Fees
- New Licence: ₹300 – ₹10,000
- Renewal Fee: ₹1,000 – ₹15,000
- Amendment Fee: ₹100 – ₹1,000
- Late Renewal Fee: 25%–50% additional
Penalties
- Operating without licence: Up to ₹1,00,000 or 2 years imprisonment
- Safety violations: ₹1,00,000 or imprisonment or both
- Environmental violations: ₹50,000 – ₹2,00,000 or closure
Processing Timeline
25–30 working days, subject to inspection and documentation.Factory Licence Renewal Online
Factory licences must be renewed periodically to ensure uninterrupted operations.- Validity: Usually 1 year (up to 5 years in some states)
- Renewal Window: 30–90 days before expiry
- Late Renewal: Attracts penalties and additional fees
Factory Licence Certificate
The Factory Licence Certificate is the final approval allowing your unit to start manufacturing. It contains:- Factory Name & Address
- Licence Number
- Approved Workforce Limit
- Type of Manufacturing Activity
- Validity Period
Why Choose LegalInfinix?
Even a small error in factory licence registration can cause major delays or rejection. At LegalInfinix, our experienced legal professionals provide:- End-to-end factory licensing support
- State-wise compliance expertise
- Inspection and renewal assistance
- Transparent pricing and timely updates
Other Services from Legal Infinix
We manage complete business setup and compliance across India.
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