Factory License Registration with SNB Consultancy
SNB Consultancy ensures manufacturers and industrial businesses operate legally and safely with mandatory Factory Licenses under the Factories Act, 1948.
This license is essential for units employing workers and using power for manufacturing, ensuring safety, hygiene, and labor compliance.
Our Factory License Services Include:
- Eligibility assessment and activity categorization
- Preparation of site layout plans and safety documentation
- Filing of license application with the Chief Inspector of Factories
- Coordination for departmental inspection and approvals
- Renewal tracking, modification filing, and labor law compliance advisory
Overview of Factory License
A Factory License is a mandatory approval issued under the Factories Act, 1948, ensuring worker safety, legal compliance, and operational transparency. Before a factory can commence operations, it must register with the Department of Factories and Boilers, undergo safety inspections, and obtain a valid license. This license serves as official authorization for manufacturing activities, regulating working conditions, power usage, and labor welfare.
Who Needs a Factory License?
- Factories with 10 or more workers using power
- Factories with 20 or more workers without power
- Hazardous manufacturing units, regardless of workforce size
Why is a Factory License Necessary?
- Worker Safety & Welfare: Ensures safe working environment and labor law compliance
- Legal Compliance: Avoids fines, penalties, or shutdowns
- Operational Authorization: Factories cannot operate without approval
- Environmental & Fire Safety: Hazardous factories must meet safety standards
- Employment Regulation: Guarantees fair wages, working hours, and welfare
Classification of Factories
- Hazardous Factories: Dealing with chemicals, explosives, toxic materials (e.g., pharmaceuticals, refineries, fertilizers)
- Non-Hazardous Factories: Industries like textiles, food processing, paper mills
Benefits of a Factory License
- Legal Protection and compliance with laws
- Worker Welfare and safe conditions
- Boosts productivity with fewer disruptions
- Enables government approvals, tenders, and subsidies
Checklist for Application
- Factory premises & building compliance
- No Objection Certificates from Fire, Water & Pollution Control Authorities
- Layout plan approval from State Labour Department
- Notification to Chief Inspector of Factories
- Approval for factory location
Documents Required
- Business Identity: Incorporation Certificate, MoA, AoA, GST, PAN
- Property: Ownership deed, rent/lease agreement, land use certificate
- Technical: Layout plan, machinery list, process flow chart, safety measures
- Regulatory Approvals: Fire NOC, Pollution Consent, Environmental Clearance, Building Stability Certificate
Application Process
- Review eligibility under Factories Act
- Prepare documents and approvals
- Complete Form No. 2 (new) or Form No. 3 (renewal)
- Pay license fee based on workforce and power usage
- Submit application to Chief Inspector of Factories or online portal
- Inspection of premises by factory inspectors
- License issuance upon approval
Factory License Fee Structure
| Factory Category | Annual Fee Range |
|---|---|
| Small Factories (10–50 workers) | ₹1,500 – ₹3,000 |
| Medium Factories (51–250 workers) | ₹3,000 – ₹7,500 |
| Large Factories (251–500 workers) | ₹7,500 – ₹15,000 |
| Very Large Factories (500+ workers) | ₹15,000 – ₹25,000 |
| Hazardous Manufacturing Units | Additional 20–50% surcharge |
Validity & Renewal
Factory Licenses are typically issued for 1–5 years depending on state laws. Renewal applications must be filed 30–60 days before expiry. Late renewals attract penalties from ₹5,000 to ₹25,000+. Any major changes in machinery, workforce, or processes require fresh approvals.
At SNB Consultancy, we handle the end-to-end Factory License registration and renewal process, ensuring compliance with the Factories Act, 1948. From document preparation to inspection readiness, we keep your business fully protected and operational.
Need a Factory License?
SNB Consultancy ensures smooth registration, renewals, and compliance under the Factories Act, 1948.