Factory License Starting at Just ₹2,999/-!
A Factory License is a statutory authorisation required for manufacturing premises that fall within the applicable factory licensing framework. It is administered through the relevant State or Union Territory authority responsible for factory safety and industrial working conditions.
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A Factory License is a statutory authorisation required for manufacturing premises that fall within the applicable factory licensing framework. It is administered through the relevant State or Union Territory authority responsible for factory safety and industrial working conditions.
India's factory licensing framework changed when the Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025. The Code generally defines factories using thresholds of 20 workers where manufacturing uses power and 40 workers where it does not. However, an important saving provision preserves different State-specific thresholds until the competent State legislature changes them.
Factory owners must therefore assess the manufacturing process, worker strength, use of power, State legislation, applicable licensing rules and other safety obligations before applying.
Legal Papers India Business Solution Private Limited is a private business-registration and compliance consultancy. Businesses planning a manufacturing unit can contact the company to discuss their requirements, confirm the availability of Factory License assistance and request a quotation.
Contact Legal Papers India to discuss your proposed factory.
A Factory License is an authorisation issued under the applicable factory licensing rules to a manufacturing establishment that meets the relevant legal conditions.
It is intended to support regulatory oversight of manufacturing premises, working conditions, worker health and safety.
Section 79 of the Occupational Safety, Health and Working Conditions Code, 2020 provides the framework for factory plan submission, prior site or construction permission where prescribed, and factory licensing and renewal under the applicable rules.
The actual application procedure, documents, fee calculation and issuing authority depend on the State or Union Territory where the factory is located. A Factory License is not the same as company incorporation, Udyam registration, GST registration or an industrial product approval.
The principal current central framework is the Occupational Safety, Health and Working Conditions Code, 2020, which came into force on 21 November 2025.
Before its commencement, factory licensing was principally governed by the Factories Act, 1948 and the relevant State Factories Rules.
The OSH Code replaced the earlier central framework, while the treatment of existing rules, approvals and State-specific requirements must be assessed through the applicable repeal, saving and transitional provisions.
Q. Why Do Some Government Portals Still Mention the Factories Act, 1948?
State portals and existing licence records may retain older statutory names, forms or administrative terminology while legal and operational transitions are implemented.
A reference to the Factories Act on a portal does not, by itself, establish that every earlier provision remains the controlling law.
Applicants should confirm the current State notifications, applicable rules and accepted filing procedure before submission.
Q. Who Needs a Factory License in India?
Factory licensing depends on whether the premises fall within the applicable legal definition and whether the relevant rules require licensing.
The assessment is not based only on whether the business calls itself a factory.
The OSH Code generally uses a threshold of 20 or more workers for premises carrying on a manufacturing process with the aid of power, subject to the State-specific saving provision and other applicable legal requirements.
1. Manufacturing Units Without Power
The OSH Code generally uses a threshold of 40 or more workers for premises carrying on a manufacturing process without the aid of power, subject to the same State-specific qualification.
2. Existing Manufacturing Factories
Businesses already operating under a factory registration or licence must review the effect of the OSH Code, current State rules and any applicable transitional provisions.
An existing factory should not assume its licence is automatically cancelled or that renewal obligations have disappeared.
3. New Industrial and MSME Units
A startup or MSME may need factory licensing if its manufacturing premises meet the applicable legal criteria.
MSME or Udyam registration does not replace a required Factory License.
4. Units Involving Hazardous Processes
Manufacturing operations involving hazardous substances or processes may face additional safety, disclosure, site appraisal and other requirements.
The relevant obligations must be checked even where a business is smaller than the ordinary factory-definition threshold.
|
Manufacturing activity |
General OSH Code threshold |
Important qualification |
|---|---|---|
|
Manufacturing with power |
20 or more workers | A different pre-existing State statutory threshold may continue |
|
Manufacturing with power |
40 or more workers | A different pre-existing State statutory threshold may continue |
|
Smaller manufacturing establishment |
May fall below the general factory definition | Other OSH, registration, hazardous activity and sector-specific requirements may still apply |
Worker counting requires attention to the statutory definition, including workers engaged during the relevant preceding period. A business should not calculate applicability only from the number of permanent employees present on the application date.
Q. Does a Factory With 15 Workers Need a License?
It depends on the State, the manufacturing process, use of power and applicable law. A 15-worker manufacturing unit using power may fall below the general central 20-worker threshold, but a saved State threshold or another applicable requirement can change the result.
The business should check the actual State framework before deciding that licensing is unnecessary.
Q. What Activities Count as a Manufacturing Process?
The OSH Code defines manufacturing processes broadly. Depending on the circumstances, activities may include making, altering, repairing, finishing, packing, cleaning or otherwise treating articles for their use, sale, transport, delivery or disposal.
Other specified processes are also covered by the statutory definition. A business should assess what actually happens at the premises rather than rely solely on its industry description.
For example, a unit assembling products, processing materials or carrying out industrial packaging may require closer examination even if it does not describe itself as a conventional factory.
Q. Who Issues a Factory License?
Factory licensing is administered by the appropriate State or Union Territory authority responsible for factory regulation. The department may be described as the Directorate of Industrial Safety and Health, Directorate of Factories, Department of Factories and Boilers, Labour Department or another designated authority. The statutory framework refers to the relevant government and Inspector-cum-Facilitator arrangements.
There is no single national portal that automatically issues every Factory License in India.
Eligibility and application conditions depend on the relevant State rules and the type of factory.
These are separate legal requirements and should not be described as universally mandatory attachments to every factory application.
The precise document checklist is prescribed by the relevant State authority.
The following documents are commonly relevant, but individual requirements must be confirmed before filing.
Business Documents
Premises Documents
Manufacturing and Technical Documents
Safety and Environmental Documents
Depending on the factory and State requirements, the applicant may need:
Existing Factory Documents
For renewal, amendment or other action on an existing licence, the authority may require the current licence, previous approval details and documents supporting the proposed change.
The application is generally handled through the relevant State's factory, labour or single-window portal.
Step 1: Confirm Whether Factory Licensing Applies
Review the manufacturing activity, number of workers, use of power and State-specific legal threshold.
Step 2: Identify the Correct State Authority
Determine which department has jurisdiction over the factory premises.
Step 3: Review Site and Building Approval Requirements
Confirm whether factory plan approval, site permission or construction-related approval is required before the licensing application.
Step 4: Prepare the Factory Documents
Collect business records, premises evidence, technical drawings, machinery details and relevant safety documents.
Step 5: Complete the Prescribed Application
Use the form or digital workflow currently accepted by the State authority.
Do not assume that Form 1 or Form 2 is the universal application form throughout India.
Step 6: Calculate and Pay Government Fees
Pay the statutory amount prescribed for the particular State, workforce, power capacity, validity period and other relevant factors.
Step 7: Submit the Application
File the application with supporting documents and preserve the acknowledgement.
Step 8: Respond to Queries or Inspection Requirements
The authority may examine the documents, require corrections or conduct an inspection according to the applicable rules and risk-based procedures.
Step 9: Obtain the Decision
The competent authority determines whether the statutory requirements for the requested approval or licence have been satisfied.
Step 10: Maintain Ongoing Compliance
After receiving the required authorisation, the factory must comply with the applicable conditions, worker safety obligations and future filing or renewal requirements.
Yes. Factory plan approval and factory licensing address related but distinct regulatory stages. Plan approval concerns the proposed site, buildings, layout, construction or extension where the applicable rules require prior permission.
Factory licensing concerns authorisation to operate a qualifying factory under the relevant framework. Section 79 of the OSH Code addresses these subjects separately.
A business should confirm which approvals must be obtained before construction, installation or commencement of manufacturing.
Factory License government fees are not uniform across India.
The applicable amount depends on the current State rules and may take account of workforce size, installed power, the type of factory and the chosen or prescribed licence period.
|
Cost component |
How it is determined |
|---|---|
|
Factory registration or licensing fee |
Applicable State fee schedule |
|
Plan approval fee |
State rules, where payable |
|
Renewal fee |
State-specific renewal framework |
|
Amendment fee |
Nature of change and applicable rules |
|
Separate fire or pollution approval costs |
Respective authority and applicable law |
|
Private consultancy fee |
Agreed scope of professional assistance |
No nationwide fixed fee or unverified fee range is stated here.
Q. Does the Government Factory License Fee Include Consultancy?
No. Government fees are statutory payments, while professional consultancy fees are private commercial charges.
Legal Papers India has not provided a verified Factory License consultancy price for this page. Contact Legal Papers India to confirm the availability of assistance and request a quotation.
The time required depends on the State, applicable rules, factory type, document completeness and any plan approval or inspection requirements.
Section 79 of the OSH Code contains a specific framework for decisions on certain site, construction or extension permissions. That provision must not be presented as a universal guarantee that every Factory License will be issued within the same period.
Businesses should distinguish document preparation time, plan approval time, licence processing time and separate fire or environmental approvals. The applicable State's current service standard should be checked before committing to a commercial launch date.
The licence period and renewal requirements depend on the operative State framework and any applicable transitional provisions. Some State systems may offer different licence periods or online renewal arrangements.
An applicant should confirm:
A factory should not rely on a universal one-year or five-year validity statement.
Factory License Amendment and Changes
Changes in factory operations can affect the information recorded in the licence.
Depending on the applicable State rules, relevant changes may include:
Some changes may require advance permission, an amendment or a fresh approval. The correct route should be established before implementing a material change.
A Factory License and Pollution Control Board consent are different authorisations.
Where applicable, Consent to Establish concerns the establishment stage, while Consent to Operate concerns operation under the relevant environmental framework.
The need for environmental consent depends on the activity, classification and applicable pollution-control law. Obtaining a Factory License does not automatically replace environmental permissions.
Likewise, pollution consent does not by itself establish compliance with factory licensing requirements.
An MSME may need factory licensing where its premises fall within the applicable definition and licensing requirements.
Udyam registration, GST registration and company incorporation do not substitute for a Factory License.
Conversely, a small manufacturing unit below the relevant factory licensing threshold may still need other registrations, environmental permissions, product-specific approvals or worker safety compliance.
The correct decision requires reviewing the actual activities and applicable State law.
Factory License for Hazardous Manufacturing Units
Hazardous manufacturing activities require particular attention to worker protection, environmental risk and emergency arrangements.
The OSH Code contains provisions concerning hazardous processes, disclosure of information, safety responsibilities and other special requirements.
The applicable duties depend on the nature of the operation, statutory classifications and relevant notifications.
Businesses handling hazardous chemicals or dangerous processes should obtain a detailed compliance assessment before starting operations.
1. Using Outdated Worker Thresholds
The earlier 10/20-worker framework cannot be presented as the universal current rule after commencement of the OSH Code. The Code's 20/40 thresholds and the State-specific saving provision must both be considered.
2. Assuming Every State Uses the Same Form
Factory licensing is administered through State-specific rules and systems. Form names and portal requirements may differ.
3. Starting Construction Without Checking Plan Approval
A factory may need site, building or extension permission before certain work begins.
4. Treating Pollution Consent as a Factory License
Environmental consent and factory licensing address different regulatory requirements.
5. Submitting Inconsistent Machinery Details
Differences between installed power, layout drawings, process descriptions and workforce declarations can create application problems.
6. Ignoring Existing Licence Transitions
An operating factory should review the treatment of existing licences and State rules following the OSH Code's commencement.
Factory licensing should begin with an assessment of the manufacturing premises and the law applicable in the relevant State.
Legal Papers India Business Solution Private Limited is a private business-registration and compliance consultancy.
Businesses can contact the company to discuss their proposed factory, confirm whether relevant licensing assistance is available and request a quotation.
Information to Prepare Before Enquiring
Setting up a new manufacturing unit, expanding an existing factory or reviewing a licence under the updated labour-law framework?
The first step is to identify the applicable State threshold, licensing requirements, plan approval obligations, documents and government fees.
Legal Papers India Business Solution Private Limited can receive your enquiry, confirm the availability of private Factory License assistance and provide a quotation where applicable.
Contact Legal Papers India to discuss your factory licensing requirements.
Disclaimer: Legal Papers India is a private consultancy and not a government licensing authority. Factory approvals are issued by the competent government authority under applicable law.
Official references
A Factory License is an authorisation required for manufacturing premises covered by the applicable factory licensing framework. It is administered by the relevant State or Union Territory authority. The requirements depend on the manufacturing activity, workforce, use of power, State rules and the Occupational Safety, Health and Working Conditions Code, 2020.
The Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025 and provides the current central framework. State-specific thresholds, operative rules and transitional arrangements remain important. Applicants should not rely exclusively on older Factories Act, 1948 guidance without checking the current legal position.
The OSH Code generally defines a factory using thresholds of 20 workers where manufacturing uses power and 40 where it does not. However, its saving provision preserves different pre-existing State statutory thresholds until amended. The correct threshold must therefore be confirmed for the State where the premises are located.
No. Factory licensing depends on the applicable legal definition, manufacturing activity and relevant rules. A small manufacturing business may fall below the applicable factory licensing threshold but still have other safety, environmental, labour or sector-specific obligations. The decision should not be based solely on the business's MSME status.
The relevant State or Union Territory factory regulatory authority administers the licensing process. Depending on the jurisdiction, the department may be called the Directorate of Industrial Safety and Health, Directorate of Factories, Department of Factories and Boilers or Labour Department. The application should be filed through its accepted process.
Many States provide online factory licensing through their labour, factories or single-window portals. The correct portal and application form depend on the jurisdiction. Applicants should confirm whether plan approval, licensing, renewal or amendment is being requested and follow the current instructions issued by the competent State authority.
Common documents include business and occupier details, premises evidence, factory site and building plans, manufacturing-process information, machinery and power particulars, and proposed worker strength. Fire, pollution, structural or hazardous-process documents may be required depending on the State and activity. The final checklist must follow the relevant authority.
There is no single nationwide Factory License fee. State rules prescribe the relevant fee and may consider workforce, installed power, factory category and licence period. Plan approval, renewal and amendment may have separate charges. Applicants should obtain the current official fee calculation rather than rely on an unverified national price range.
Processing time varies with the State, type of application, completeness of documents and any required plan approval or inspection. The OSH Code provides a separate framework for certain site, construction and extension permissions. That should not be confused with a universal guarantee for issuance of the Factory License itself.
Plan approval may be required under the applicable rules, particularly for proposed factory sites, construction or extensions. Section 79 of the OSH Code provides for State rules concerning such permissions. The applicant should determine the correct sequence before construction or manufacturing begins.
No. Udyam registration concerns MSME identification under its own framework. Factory licensing concerns manufacturing premises and occupational safety requirements. A business may need both, depending on its activities and eligibility. Obtaining Udyam registration does not automatically satisfy the requirements of the factory licensing authority.
The requirement depends on the activity and applicable environmental law. Certain manufacturing operations need Consent to Establish, Consent to Operate or other environmental permissions. These are separate from factory licensing. Applicants should check their industry's classification and the relevant Pollution Control Board requirements before assuming consent is mandatory or unnecessary.
Not every manufacturing unit follows an identical fire approval procedure. The requirement depends on the building, occupancy, industrial risk and relevant State or local rules. Factories must nevertheless comply with applicable fire prevention and emergency safety obligations, whether or not a separate Fire NOC is required.
Validity and renewal depend on the applicable State framework and any transitional arrangements. There is no safe universal one-year or five-year answer for every State. A factory should check its issued licence, the current rules and the authority's renewal instructions before the relevant deadline.
The applicable rules may require an amendment, notification or fresh approval for changes involving the occupier, manager, factory premises, installed power, worker strength, manufacturing process or building layout. The correct action depends on the State and nature of the change. Material changes should be reviewed before implementation.
A manufacturing establishment required to obtain a Factory License should not operate without the necessary authorisation. The applicable legal consequences depend on the specific contravention and operative provisions. A business below the factory licensing threshold may still have other statutory obligations and should not treat the absence of licensing as a general exemption.
Certain OSH Code provisions apply to establishments with ten or more workers, while factory-definition thresholds and other requirements may differ. The Ministry has clarified that increasing the general factory thresholds does not remove occupational safety protections from covered smaller establishments. Special and State-specific rules must also be considered.
A Factory License is associated with the premises and particulars covered by the relevant authorisation. Businesses operating separate manufacturing locations should not assume that one licence covers both. The applicable State rules must be checked to determine whether separate registration, licensing or other action is required.
Inspection requirements depend on the applicable State rules, factory risk category and type of approval. Authorities may conduct document scrutiny, technical assessment or inspection as prescribed. It is inaccurate to promise that every application will be approved without inspection or that every application must follow an identical physical inspection process.
Yes. An eligible applicant may apply directly through the procedure prescribed by the relevant State authority. Professional consultancy is optional. The applicant remains responsible for accurate information, required permissions and compliance, while the government authority makes the statutory decision.
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