Factory License – Procedure, Renewal, Online Registration

May 04, 2023

8 min read

Over time, the manufacturing industry has seen a steady boom in its growth throughout the country. Several schemes such as ‘Make in India’ have given an added spurt to this industry, which is now expected to be the 5^th largest manufacturing country world over by the end of this year. To be able to safeguard the workers, and to affirm that factory owners are giving them a healthy and sound work environment, the Indian government has introduced the Factory Act 1948 which mandates that all factory owners should have their properties registered with the concerned authorities. The Factories and Boilers department is the designated body that ensures that workers are well taken care of.

What are some of the guidelines that need to be followed by factory owners under the Factory Act 1948?

The government of India requires the following mentioned types of factories to adhere to the Factory Act 1948.

Factories with a minimum of 10 workers and consumer power
Hazardous products
Non-Hazardous products
Factories with a minimum of 20 workers with no power consumption

Advantages of Getting a Factory License

Obtaining a factory license is beneficial to all the employees working at such establishments as it ensures the safety and well-being of these workers. Some of these advantages include;

1. Legal Benefits

The factory owner would be eligible to avail of legal benefits provided by the government, depending on the scheme chosen

2. Specified Provisions for Employees

Female and young workers are looked after under this in regard to salaries, health and safety, work conditions, and the number of hours they put in

3. Additional Matters

Holidays, leaves, number of hours, wages, enlisting of women, enlisting children, hiring, firing and many other factors are taken care of when one gets the factory license.

4. Productivity Enhancement

Complying under the guidelines set by the Factories Act 1948 further enhances the productivity of all the workers

5. Equality

The license ensures that every employee under the establishment gets equal rights and treatment.

Procedure for Registering a Factory in India

Since it is obligatory to obtain a factory license, you need to register first and the following mentioned steps are needed to do so;

Applicants need to completely fill out the designated form No. 2, along with the required documents and applicable fees, and submit it to the Director of Factories and Boilers
Once the application is received, it is scrutinized by the concerned party
The documents are also scrutinized and if all is in place, the process is sent for approval to the concerned authority
If the documents demonstrate any discrepancy, you will need to rectify the errors and re-submit in the stipulated time-frame
Once the approval is given, a license along with a registration certificate is provided and a cover letter shall be needed for the same

Documents Needed for the Factory License

Mentioned below is the list of the documents you will need;

Form No. 2 fully filled and duly signed
Fees as per the fee structure provided
Director or partner resolution nominating one of them to act as the occupier
Health and safety policy for all factories which employ minimum 50 workers
Attested copy of the stability certificate issued by a recognized authority

Safety and Welfare Measures Under the Factory Act

The following safety and welfare measures will be observed when a factory license is obtained;

Safety Measures under the Factory Act	Welfare Measures under the Factory Act
Machinery fencing	Washing and drying facilities
Working near machinery that is in motion	First aid services during emergencies
Prohibition of women and young adults near hazardous machinery	Rest areas for providing sitting facilities
Protection of eyes, ears and other sensitive body parts during work hours	Crèches, canteens and lunchrooms for all the employees

A Checklist of all the Requirements for Obtaining the Factory Licence

The factory owner/s will be required to take permission well in advance from the State government as to where the factory will be located. To be able to occupy the premises, the owner will also need to send a legal notice to the chief inspector under the Section 7 Act a minimum of 15 days before any activity or occupancy can be achieved there. The following details would be needed at this time;

Name of the occupier
Address of the occupier
Name of the manager that will run the show
Number of employees that will be hired
Type of manufacturing process which shall be carried out at the said factory
Any other details which require close monitoring

Renewal Process

If the license has expired, a renewal of the same will be needed. The following mentioned procedure will need to be followed;

A fully filled form No. 2 shall need to be submitted at renewal time
The designated authority shall scrutinize this application
Post-inspection, the process for approval shall begin, in case all the documents and information is in place
Corrections, if needed, shall be done at this stage
The application will then be sent with all corrections and the right documents for approval
The renewed license copy attested by the government authority in question shall then be sent to the owner
A copy of the original factory license should be submitted for the renewal process along with the fees and form no.2

India’s factory registration is run by the provisions of the Factories Act 1984. This is operated by the Ministry of labour and Employment. Obtaining a license is mandatory for all and is essentially made so to ensure that the owners as well as the employees are well taken care of should there be any issues during operations. Factory work can be tedious and hazardous and workers are often overworked and underpaid. This factory license makes sure that no one is being exploited as well as people associated with the establishment are scrutinized by the government.

State Wise Websites List:

1. Andhra Pradesh – https://www.apindustries.gov.in/
2. Arunachal Pradesh – http://indarun.gov.in/ or http://indarun.gov.in/htm/doingbusiness.htm
3. Assam – https://ciflabour.assam.gov.in/how-to/apply-for-registrationlicencing
4. Bihar – http://udyog.bihar.gov.in/Single-Window-Clearance.aspx or https://serviceonline.bihar.gov.in/
5. Chhattisgarh – http://cglabour.nic.in/
6. Goa – https://goaonline.gov.in/Appln/Uil/DeptServices?__DocId=FAB&__ServiceId=FAB70 or https://ifbgoa.goa.gov.in/goa-factories
Gujarat – https://dish.gujarat.gov.in/e-services.htm
7. Haryana – https://hrylabour.gov.in/factory/factory/factory_terms
8. Himachal Pradesh – http://admis.hp.nic.in/ofris/
9. Jharkhand – https://shramadhan.jharkhand.gov.in/home
10. Karnataka – https://esuraksha.karnataka.gov.in/english
11. Kerala – http://www.fabkerala.gov.in/
12. Madhya Pradesh – https://mponline.gov.in/PORTAL/SERVICES/FACTORYREG/LOGIN/FRMLOGIN.ASPX
13. Maharashtra – https://mahakamgar.maharashtra.gov.in/dish-registration-and-grant-of-license.htm
14. Manipur – https://dcimanipur.gov.in/
15. Meghalaya – http://meglabour.gov.in/forms_cibf.html
16. Mizoram – https://eodbmizoram.gov.in/labour-skill-development-and-entreprenuership/online-services
17. Nagaland – https://labour.nagaland.gov.in/the-factories-act-1948/
18. Odisha – http://dfbodisha.gov.in/registration-license
19. Punjab – https://pblabour.gov.in/
20. Rajasthan – http://rajfab.nic.in/
21. Sikkim – https://sikkim.gov.in/departments/labour-department
22. Tamil Nadu – https://dish.tn.gov.in/onlineservices.html
23. Telangana – https://tsfactories.cgg.gov.in/
24. Tripura – https://factory.tripura.gov.in/
25. Uttarakhand – https://labour.uk.gov.in/pages/show/107-factory-boiler-wing
26. Uttar Pradesh – http://uplabour.gov.in/StaticPages/Registration2.aspx
27. West Bengal – https://wbfactories.gov.in/

Factory License FAQs:

1. How can I apply for a renewal of my Factory License?

An application for renewal is required to be made to the Directorate of Industrial Safety and Health, Labour Department, Government of NCT of Delhi.

2. Can the license be renewed for more than one year at a go?

The factory owner can get the license renewed for one, five, or ten years at a time.

3. In case the application for renewal is not submitted on time, will there be a late fee?

A late fee at 25% is payable, which is charged after the application for renewal is submitted. The date of submission of the application will be noted to calculate the late fee.

4. Who is eligible to apply for a Factory License?

Every manufacturing unit is eligible to obtain a Factory License.

5. Can a Factory License be obtained in a residential area?

No, Factory Licenses will not be granted in residential areas.

6. What is the validity of a Factory License?

A Factory License is valid for one year.

7. What is the minimum period before a factory must compulsorily apply for a license from the authority?

The government has clarified that a license must be obtained at least 15 days prior to functional start-up of the factory.

8. What are the two types of Factories broadly classified as?

Factories are broadly divided into two categories: Hazardous and Non-Hazardous.

9. How is the Factory License fee calculated?

The factory license fee is calculated on the basis of no. of workers employed and installed power in HP/KW of the machinery.

10. Which Factories are considered to be hazardous?

Factories are considered to be hazardous as per the First Schedule of the Factories Act, 1948.