Overview
A Factory License is a mandatory approval required to operate a manufacturing unit in India. It is issued under the Factories Act, 1948 by the respective State Labour Department. The license ensures that factories comply with legal standards related to worker safety, health, welfare, and working conditions.
Whether you are setting up a small manufacturing unit or a large industrial facility, obtaining a factory license is essential before commencing operations. At Adviso Compliance, we provide complete factory license registration services with expert guidance, accurate documentation, and timely approvals.
What is a Factory License?
A Factory License is a legal authorization granted by the government that allows a business to operate a manufacturing facility. It confirms that the factory meets all statutory requirements related to safety measures, infrastructure, machinery, and employee welfare.
A factory license is location-specific and must be obtained before starting manufacturing activities.
Who Needs a Factory License?
A factory license is required for businesses that meet the following criteria:
Manufacturing units using power and employing 10 or more workers, or
Manufacturing units without power employing 20 or more workers
The license is mandatory regardless of the type of manufacturing activity.
Why is Factory License Important?
Obtaining a factory license is crucial for several reasons:
Legal permission to operate a manufacturing unit
Ensures worker safety and welfare
Compliance with labour and industrial laws
Avoids penalties, fines, or closure
Required for obtaining other approvals and registrations
Builds credibility with authorities and stakeholders
Operating without a factory license is a serious legal violation.
Types of Factory Licenses
Factory licenses may vary based on the stage of the factory and operations:
New Factory License
Issued for newly established manufacturing units before commencement of production.
Renewal of Factory License
Required periodically to continue factory operations without interruption.
Amendment of Factory License
Needed when there is a change in layout, machinery, workforce strength, or ownership.
Documents Required for Factory License Registration
The following documents are generally required:
Identity and address proof of occupier and manager
Factory layout plan approved by authorities
Details of machinery and manufacturing process
Proof of ownership or lease of premises
Partnership deed or incorporation certificate
List of workers and safety measures
NOC from local authorities (if applicable)
Our experts at Adviso Compliance ensure all documents are prepared and verified accurately.
Factory License Registration Process
We follow a systematic and transparent process:
Step 1: Factory Assessment
We assess the nature of manufacturing, workforce size, and compliance requirements.
Step 2: Document Preparation
All required documents, drawings, and details are prepared as per legal standards.
Step 3: Application Submission
The factory license application is filed with the State Labour Department.
Step 4: Inspection
Authorities may conduct a physical inspection of the factory premises.
Step 5: License Issuance
Upon successful verification, the factory license is granted.
Factory Layout Approval
Before obtaining a factory license, approval of the factory layout is mandatory. The layout plan must include details such as machinery placement, ventilation, emergency exits, fire safety provisions, and worker facilities.
Proper layout approval helps ensure compliance with safety and operational norms.
Validity & Renewal of Factory License
Factory licenses are usually valid for one year or more, depending on state regulations
Renewal must be done before expiry
Delayed renewal may attract penalties or suspension
We assist with timely renewal to ensure uninterrupted operations.
Common Mistakes in Factory License Registration
Delays or rejection may occur due to:
Incorrect layout plans
Incomplete documentation
Non-compliance with safety norms
Mismatch in workforce details
With Adviso Compliance, these risks are minimized through expert handling.
Penalties for Operating Without Factory License
Operating a factory without a valid license may result in:
Heavy fines
Legal prosecution
Factory closure
Cancellation of other approvals
Obtaining a factory license on time helps avoid these serious consequences.
Why Choose Adviso Compliance for Factory License?
Experienced industrial compliance professionals
End-to-end documentation and filing support
Coordination with labour authorities
Fast processing and follow-ups
Transparent pricing
PAN-India service support
We also assist with factory license amendment and renewal services.
Post-Factory License Compliance
After obtaining a factory license, businesses must:
Maintain safety and welfare standards
Conduct regular inspections and audits
Maintain statutory registers and records
Comply with labour laws and factory rules
Our team provides ongoing compliance support to keep your factory legally compliant.
FAQs – Factory License
Yes, if the unit meets the minimum worker criteria under the Factories Act.
Factory license approval usually takes 30–60 working days, depending on state regulations.
Yes, inspection is generally required before license approval.
No, factory licenses are non-transferable and location-specific.
Yes, factory licenses must be renewed before expiry.