RAJESH KUMAR PATRA Business Advisor

Updated on: Jun 27, 2025

Factory License

Setting up and running a factory in India involves several legal and regulatory obligations, one of the most critical being the Factory License. Mandated under the Factories Act, 1948, this license serves as official permission from the State Government to commence manufacturing operations. Whether you're establishing a new factory, expanding an existing one, or relocating operations, obtaining a valid Factory License is essential to ensure compliance with labour laws, worker safety standards, and environmental regulations. In this guide, we’ll walk you through everything you need to know about Factory License registration in India—from eligibility and documentation to online procedures and expert support.

What is a Factory License?

A Factory License is an official document issued by the State Government under the Factories Act, 1948, granting legal permission to operate a factory and carry out manufacturing activities. 

It serves as a compliance requirement to ensure that the factory adheres to regulations related to:

• Worker safety and health
• Working conditions
• Environmental standards
• Labour laws

Any premises engaged in manufacturing with a specified number of workers (10 or more with power, or 20 or more without power) must obtain this license. The license is issued by the State Labour Department or the Department of Factories, and it must be renewed periodically to continue operations legally.

Who Needs to Obtain a Factory License?

Under the Factories Act, 1948, a Factory License is mandatory for:

• Factories using power: If 10 or more workers are employed and a manufacturing process is carried out with the aid of power.
• Factories not using power: If 20 or more workers are employed and the manufacturing process is carried out without the aid of power.

Also Required For:

• New factories are being set up.
• Existing factories are undergoing expansion or a change in operations.
• Factory relocations to new premises.

Factory owners falling under these conditions must register their premises and obtain a license from the respective State Labour Department before commencing operations. Failure to do so can lead to legal penalties, suspension of factory activities, or closure.

Requirements  to obtain the Factory License 

Before applying for a factory license under the Factories Act, 1948, the following requirements must be fulfilled:

Factory Premises and Approvals

 A completed factory building or premises.

• The factory layout plan was drawn as the per prescribed standards.
• Approval of the factory plan by the respective State Labour Department.
•  Permission for factory location from the State Government.

Mandatory NOCs

• No Objection Certificate (NOC) from the:
• Fire Department
• Water Supply Authority
• Pollution Control Board

Notice to Chief Inspector

The factory owner must send a legal notice to the Chief Inspector at least 15 days prior to commencing operations or using the premises. This notice must include:

• Name and address of the occupier
• Name and location of the factory
• Name of the factory manager
• Number of workers to be employed
• Type of manufacturing processTotal rated horsepower installed or to be installed
• Any other required particulars

Documents Required for Factory License

To apply for a factory license under the Factories Act, 1948, the following documents are typically required:

• Owner’s ID and Address Proof (e.g., Aadhaar card, passport, voter ID)
• Factory Premises Address Proof (e.g., rental agreement, property tax receipt, or electricity bill)
• Consent Letter from Pollution Control Department 
• No Objection Certificates (NOCs)  From the Fire Department and Water Department 
• Copy of Business PAN Card
• Factory Layout and Building Plan (approved by the state labour department)
• List of Directors / Partners
• Board Resolution or Partnership Deed (depending on the business structure)
• Details of Machinery and Equipment
• List of Raw Materials Used
• Details of Hazardous and Non-Hazardous Wastes
• Tax Receipts, if applicable

Need help preparing or organising your documents? Our experts are here to guide you through every step of the process. 

Factory License Registration Procedure

Under Section 6 of the Factories Act, 1948, the State Government is empowered to regulate, register, and grant factory licenses. The process for obtaining a factory license is as follows: 

Step 1: Plan Submission

The factory owner must submit the factory layout plan to the State Labour Department. This submission should be made before the construction or expansion of the factory. Only after approval of the plan can the owner proceed to apply for the factory license.

Step 2: Filing the Application

The application for the factory license can be filed online or offline with the State Labour Department or the Department of Factories. The application must be submitted along with all required and duly signed documents.

Step 3: Payment of Fees

The applicant must pay the prescribed license fee after submitting the application. The amount varies depending on the state regulations and the scale of the factory.

Step 4:  Grant of Factory License

After verifying the application, documents, and conducting necessary inspections, the competent authority will issue the factory license to the applicant.

Factory License – Online Application Procedure

The online application process may vary by state. It may be available on either the State Labour Department website or the Department of Factories website.

• Step 1: Visit the Official Website: Go to the official website of the State Labour Department or the Department of Factories, depending on your state. 
• Step 2: Access Factory Registration Service: Navigate to the ‘Services’ section. Click on ‘Factory Registration’ or a similar option. 
• Step 3: Create Account / Login: Register an account on the portal, if required. Log in using your credentials.
• Step 4: Fill Application Form: Fill out the factory license application form. Upload all required documents in the prescribed format.
• Step 5: Pay Fees: Pay the prescribed application fee online using the available payment options.
• Step 6: Department Review & License Grant: The respective department will review the application, conduct any necessary inspections, and then issue the factory license if all requirements are met.

Factory License Certificate Validity

The validity of a Factory License Certificate is generally between 1 to 5 years, depending on the rules of the respective state government.

The duration is specified at the time of issuance and can vary based on:

• State-specific labour laws
• Type and size of the factory
• Fee paid for the license term

Renewal must be applied for before the expiry date to ensure uninterrupted operation.

Delayed renewal may attract penalties or lead to the suspension of manufacturing activities.

It's advisable to track the license expiry date and apply for renewal well in advance through the state’s labour or factories department portal.

Benefits of Factory License

Here are the key benefits of obtaining a Factory License registration in India that ensure legal compliance, operational continuity, and access to government incentives.

Benefits of Factory License

Here are the key benefits of obtaining a Factory License registration in India that ensure legal compliance, operational continuity, and access to government incentives:

• Legal Authorization to Operate: A Factory License is a mandatory requirement under the Factories Act, 1948, giving your manufacturing unit legal approval to begin operations.
• Avoidance of Legal Penalties: Operating without a license can lead to fines, closure, or prosecution. A valid license helps avoid these legal complications.
• Worker Safety and Welfare Compliance: Ensures implementation of proper health, safety, and welfare measures for factory workers, as mandated by law.
• Foundation for Other Approvals: Acts as a prerequisite for obtaining other licenses, clearances, and NOCs from departments such as pollution control, fire, or local authorities.
• Enhanced Credibility and Transparency: A licensed factory builds trust with stakeholders, clients, vendors, and government agencies.
• Eligibility for Government Schemes: Licensed factories can apply for subsidies, incentives, and other support provided under various state and central government programs.
• Simplified Regulatory Monitoring: Helps the government ensure that manufacturing activities are conducted in safe, compliant environments, reducing the risk of accidents or violations.
• Ease of Business Expansion: A valid license simplifies approvals and compliance checks when expanding operations or modifying manufacturing processes.

Why Choose IndiaFilings for Your Factory License?

• Expert Guidance: Get support from experienced professionals well-versed in the Factories Act, 1948 and state-specific regulations. Assistance in preparing and submitting accurate applications to avoid delays or rejections.
• End-to-End Support: From drafting documents and plan approvals to filing the application and renewals, IndiaFilings handles the entire process.
• State-Specific Expertise: Compliance processes differ from state to state — IndiaFilings provides tailored services based on your factory’s location.
• Time-Saving & Hassle-Free: Avoid the stress of running between departments. IndiaFilings streamlines the process through a single point of contact. 
• Affordable and Transparent Pricing: Clear, competitive pricing with no hidden charges. Get value-driven services at a budget-friendly cost.
• Fast Turnaround Time: Quick processing and prompt updates to help you start operations without unnecessary delays.
• Renewal & Compliance Reminders: Stay compliant year-round with timely license renewal alerts and compliance updates.

Ready to apply for your Factory License? Contact us today  to get started with expert assistance.