How to Get Factory License & Approval for Your Manufacturing Unit

1. How to Get Factory License & Approval for Your Manufacturing Unit What is a Factory License? A factory license is a formal document that is granted by the state government's Director of Industrial Safety and Health (DISH) or Chief Inspector of Factories. Under the Factories Act of 1948, it provides legal authorization to run a manufacturing facility while guaranteeing adherence to labor, safety, and health laws. Who Needs a Factory License? The Factories Act mandates that factory license registration be done for: Manufacturing units with 10 or more workers using power Units with 20 or more workers without using power This applies to factories in sectors like food processing, textiles, electronics, engineering, chemicals, etc. Process of Factory License Registration Step 1: Factory Plan Approval Before applying for the license, get the site and building plans approved by the state’sDirectorate of Factories or DISH. Documents Required: Site and layout plan Flow diagram of the manufacturing process Details of machinery Consent from local authority Step 2: Submit Factory License Application After plan approval, submit the application for factory license registration. Common Platforms: Labour Department Portal (state-specific) Shram Suvidha Portal (in some states) Details to Fill: Owner and manager details Nature of manufacturing

2. Number of workers Installed machinery HP Step 3: Upload Required Documents Typical Documents Include: Identity proof of applicant Lease deed or property papers Electricity bill or utility document Partnership deed/MOA (if company) Site and building plan approval copy Consent to Establish (from Pollution Board) List of machinery installed Step 4: Payment of Factory License Fees Factory license fees are calculated based on: Number of workers Installed power capacity Factory area Each state has its own fee structure. For example, a unit with 10–50 workers may pay ₹3,000–₹10,000 annually. Step 5: Inspection and Approval A factory inspector may visit the premises to verify compliance with: Safety equipment Ventilation and sanitation Fire exits and lighting Machine guards and fencing Once satisfied, the license is issued. Factory License Renewal – Process & Form 2 Factory licenses are typically valid for 1 year or up to 10 years (depending on the state policy). Before it expires, you must apply for factory license renewal. What is Form 2 in Factory License Renewal? Form 2 is the standard application form used for renewing an existing factory license under the Factories Act.

3. Renewal Process: 1. Download or fill Form 2 on the respective portal 2. Provide details of: oNumber of workers oType of manufacturing process oPrevious license number and validity 3. Attach updated documents 4. Pay the renewal fee online 5. Receive renewed license after inspection/approval Factory License Fees – An Overview Factory licensing costs vary by state and are determined by: Number of employees Installed horse power (HP) License validity duration Here’s a general estimate (may vary): Small factory (up to 20 workers): ₹2,000–₹5,000/year Medium factory (50–100 workers): ₹5,000–₹15,000/year Large factory (200+ workers): ₹20,000–₹50,000/year Final Thought Maintaining legal compliance and guaranteeing worker safety depend on obtaining and renewing your manufacturing license. Every stage, from plan approval to Form 2 filing for license renewal, needs to be done with care. Ignoring these regulatory requirements may lead to fines, closure letters, or legal action.