Factory License
Mandatory license for all manufacturing units under the Factories Act, 1948. Required when 10+ workers are employed with power, or 20+ workers without power.
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What is a Factory License?
Under the Factories Act, 1948, any manufacturing premises employing 10 or more workers with the use of power (or 20+ workers without power) must obtain a Factory License from the Chief Inspector of Factories (State Labour Department). The Act aims to ensure worker safety, health, and welfare. The license must be obtained before commencing manufacturing operations and must be renewed annually. The occupier of the factory is personally responsible for compliance with all provisions of the Act.
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Key Requirements Under Factories Act
Mandatory Safety Compliance
Factories must comply with safety provisions — machinery guards, fire prevention, ventilation, and emergency exits.
Worker Welfare
Provide drinking water, latrines, canteen (100+ workers), crèche (30+ female workers), and rest rooms.
Hazardous Processes
Special provisions for hazardous manufacturing — health surveys, protective equipment, and medical facilities.
Working Hours Compliance
Workers cannot work more than 48 hours/week, 9 hours/day. Overtime at double rate mandatory.
Eligibility & Requirements
How to Obtain a Factory License
Factory license application is filed with the Chief Inspector of Factories in the respective state.
1Step 1: Prepare Factory Plan
Get factory site plan and layout prepared by a licensed architect/engineer showing all departments, machinery, and safety provisions.
2Step 2: Submit Plan for Approval
Submit factory plan to Chief Inspector for approval under Section 6 of the Factories Act before construction/modification.
3Step 3: Apply for License (Form 2)
File Form 2 application for factory license with all required documents after plan approval.
4Step 4: Factory Inspection
Inspector of Factories visits for structural, machinery, fire safety, and welfare facility inspection.
5Step 5: Factory License Issued
Chief Inspector issues the Factory License (Form 4) specifying category and maximum workers allowed.
Factory license takes 15–30 days from plan approval. Larger or hazardous factories take longer due to additional inspections.
Documents Required
Occupier Documents
- PAN Card
- Aadhaar Card
- Address proof
- Identity proof
Factory Documents
- Site plan and factory layout
- Structural stability certificate
- List of machinery with HP rating
- Fire NOC
Workers & Processes
- Number of workers per shift
- Nature of manufacturing process
- Hazardous materials list (if applicable)
Post-Registration Compliance
Annual License Renewal
Factory license must be renewed annually by 31st December. Late renewal attracts penalties.
Safety Inspections
Factory Inspector may conduct surprise inspections. Non-compliance attracts fines and factory closure.
Statutory Registers
Maintain registers of workers, attendance, wages, overtime, accidents, and dangerous occurrences.
Accident Reporting
Any accident causing death or serious injury must be reported to the Inspector within 12 hours.
Common Questions
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