Factory Licence Registration Process in India – Complete Guide

Obtaining a Factory Licence in India is mandatory under the Factories Act, 1948 for any manufacturing establishment employing 10 or more workers (with power) or 20 or more workers (without power).

Eligibility

A Factory Licence is required if:

- Manufacturing processes are carried out.

- The premises employ 10+ workers (with power) or 20+ workers (without power).

Documents Required for Factory Licence

- Application Form (Form No. 2 under Factories Act)

- Proof of Business Ownership (Rental Agreement/Property Papers)

- Site Plan & Layout Plan (Approved by local authorities)

- List of Directors/Partners (if applicable)

- Machinery Details & Manufacturing Process Description

- NOC from Fire & Pollution Control Board (if applicable)

- Employee Health & Safety Measures (First Aid, Fire Safety, etc.)

- Consent to Establish (CTE) from State Pollution Control Board (SPCB) (if required)

- Stability Certificate from a Structural Engineer (for building safety)

- Proof of Incorporation (for companies – MOA, AOA, Partnership Deed, etc.)

Step-by-Step Registration Process

Step 1: Obtain Necessary Approvals

- Get NOC from the local municipal corporation for building safety.

- Apply for Consent to Establish (CTE) from the Pollution Control Board (if applicable).

- Ensure compliance with fire safety regulations.

Step 2: Submit Application to the Chief Inspector of Factories

- Fill Form No. 2 (Application for Factory Licence).

- Submit along with required documents to the State Labour Department / Directorate of Factories & Boilers.

Step 3: Inspection by Authorities

- A factory inspector will visit the premises to verify:

- Safety measures

- Machinery & working conditions

- Compliance with labour laws

Step 4: Grant of Factory Licence

- If the inspection is successful, the Factory Licence is issued (usually within 30-45 days).

- The licence must be renewed periodically (typically every year).

Fees for Factory Licence

- Varies by state (based on number of workers & power usage).

- Generally ranges from ₹1,000 to ₹10,000 depending on the state.

Renewal of Factory Licence

- Must be renewed annually before expiry.

- Submit renewal application along with inspection reports (if required).

Penalty for Non-Compliance

- Operating without a valid Factory Licence can lead to:

- Fines up to ₹1 lakh

- Imprisonment of the owner

- Closure of the factory

State-wise Variations

Each state may have additional requirements under state-specific factory rules. Check with your State Labour Department for exact procedures.