Factory License Applicability by Worker Count, Power Use & Industry Type

1. Factory License Applicability by Worker Count, Power Use & Industry Type Factory License Introduction A factory license is a legal document that all manufacturing facilities in India must have. The Factories Act, 1948, which regulates the welfare, safety precautions, and health requirements of factory workers, is the legal basis for its issuance. When Is a Factory License Required? A factory license is required under the Factories Act of 1948, Section 2(m), in the following situations: 1.10 or more workers are employed with the aid of power, or 2.20 or more workers are employed without the aid of power. This implies that, depending on activities and staffing, even small-scale companies may be subject to factory licensing. Role of Power in Factory License Applicability One important factor is the amount of power used. The license application requirement is reduced to 10 employees if your company uses mechanical or electrical power to run machinery or industrial operations. Examples:    Welding units Textile dyeing plants Plastic molding workshops Even if you're starting with fewer employees, but planning to scale, it's advisable to get the license early to stay compliant. Industry Types That Need a Factory License A factory license is necessary for a variety of industrial businesses, including:       Food & Beverage Processing Pharmaceutical & Chemical Plants Garment & Textile Units Electronics Assembly Plants Auto Parts & Metal Fabrication Workshops Paper, Plastics, and Packaging Industries

2. Factory License Documents Needed To apply for a factory license, you must submit several essential documents. Here’s a standard list:          ID & Address proof of the applicant Site plan and building layout Proof of ownership or lease deed of the premises List of machinery with HP/kW details Worker count declaration Pollution NOC (if applicable) Fire safety certificate Consent to establish (CTE) & consent to operate (CTO) Local municipal approval (in some states) These documents are typically submitted to the Labour Department or Directorate of Factories in your respective state. State Focus: Factory License in Haryana If your factory is in Haryana, the Government of Haryana's Labour Department is in charge of the licensing procedure. To ensure openness and convenience, Haryana has put in place an online system for factory registration, inspection, and license renewal. Steps in Haryana include: 1.Register on the HryLabour portal 2.Upload documents and factory layout 3.Pay applicable fees 4.Schedule inspection (if required) 5.Receive factory license digitally Timely factory license renewal is also critical to avoid penalties or cancellation of business operations. Factory License Renewal –Don’t Miss the Deadline! Most factory licenses are issued for a period of 1 to 10 years, depending on state policies. Renewal must be done before the expiry date, failing which penalties, inspections, or even closures may follow. Documents for renewal are similar to the original application, with an added requirement of past compliance reports and updated worker/machinery data. Final Thought Understanding factory license applicability isn't just about legal compliance—it's about protecting your workforce, ensuring safe operations, and building a credible manufacturing brand. Whether you operate a large facility or a small workshop, checking

3. your worker strength, power usage, and industry type is key to determining if you need a factory license.