Factory License

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.