Documents Required for Factory License in India

Documents Required for Factory License in India. Starting a manufacturing unit or factory in India requires compliance with several legal provisions. One of the most important steps in this process is obtaining a Factory License. The Factory License is a mandatory approval document issued by the concerned state government through the Department of Factories and Boilers. This license ensures that all manufacturing activities are conducted in a safe, regulated environment in accordance with the Factories Act, 1948. This article provides a detailed overview of the documents required for Factory License, procedures, legal mandates, and important compliance guidelines that every factory owner must know before beginning operations.
What is a Factory License?
A Factory License is an official permission granted to factory owners by the Department of Factories and Boilers. This license certifies that the factory complies with safety, health, and welfare standards laid down under the Factories Act, 1948. Without this license, no manufacturing unit is permitted to start its operations. The license must be obtained before commencing business and must also be renewed periodically to continue operations lawfully.
Applicability of the Factories Act, 1948
The Factories Act, 1948 applies to any factory:
• Where 10 or more workers are or were employed in the last 12 months and the manufacturing process is carried out with the aid of power.
• Where 20 or more workers are or were employed in the last 12 months and the manufacturing process is carried out without the aid of power.
However, the Act does not apply to:
• Mines,
• Mobile units of the Armed Forces,
• Hotels, restaurants, or eating places.
Objective of the Factories Act, 1948
The main objective of the Act is to regulate the working conditions in factories. It lays down provisions to ensure the health, safety, welfare, and proper working hours for workers. It also includes special provisions for women, children, and young persons working in factories. This law ensures a healthy working environment and prevents exploitation of factory workers.
Why is a Factory License Required?
Obtaining a Factory License is an important step for any manufacturing or production unit operating in India. First and foremost, it ensures legal compliance under the Factories Act, 1948, which mandates that no factory can operate without obtaining a valid license from the appropriate state authority. Running a factory without this license is considered illegal and can lead to heavy penalties or even closure of operations. Moreover, a Factory License plays an important role in protecting worker welfare and safety. It enforces adherence to essential safety measures, working conditions, ventilation, lighting, and sanitation standards, thereby reducing the risk of accidents and promoting a healthier working environment.
Another key purpose of obtaining the license is to facilitate government monitoring and inspections. Licensing gives authorities the ability to conduct timely inspections and audits to ensure compliance with labor laws, environmental norms, and safety protocols. Additionally, prior approval of the factory building plan is a prerequisite before registration, ensuring the layout aligns with statutory norms, including space allocation, emergency exits, and fire safety provisions. Possessing a Factory License gives your business industrial recognition, establishing your unit as a legally authorized and government-recognized entity. This recognition boosts credibility in the eyes of stakeholders, investors, and regulatory bodies, and is often required when applying for loans, tenders, or government incentives.
Safety and Welfare Measures Mandated by the Factory License
Once the Factory License is obtained, the owner must comply with several safety and welfare provisions mentioned in the Act:
Safety Measures in Factories
Safety measures are a basis of responsible factory management and are strictly regulated under the Factories Act to prevent accidents and occupational hazards. One key provision is the prohibition of women and young workers from operating or working near dangerous machinery, which helps reduce exposure to high-risk environments. Additionally, fencing around machinery is mandated to prevent accidental contact with moving parts, thereby reducing the likelihood of injuries. 
The law also requires that adequate precautions be taken for workers who operate near hazardous zones, including proper signage and restricted access. Furthermore, protective gear such as safety goggles, earplugs, gloves, and helmets must be provided to employees handling sensitive or dangerous equipment. These measures collectively create a safer workspace and foster a culture of awareness and prevention, which is essential in high-risk industrial settings.
Welfare Measures in Factories
The Factories Act highlights the importance of employee welfare by mandating several facilities that enhance the overall well-being and comfort of workers. Clean and accessible washing and drying areas must be provided so workers can maintain hygiene, especially after handling chemicals or machinery. For physical comfort, restrooms and proper seating arrangements are essential during breaks, allowing workers to relax and rejuvenate. 
Larger factories are also required to have canteens and lunchrooms to ensure employees have access to nutritious food within the premises. Moreover, first aid kits and immediate medical support must be available at all times to address injuries or health emergencies promptly. These welfare provisions not only support physical health but also improve morale and productivity by showing that the employer values the well-being of the workforce.
Requirements Before Applying for a Factory License
Before submitting an application for a Factory License, the factory owner must:
1. Get the building layout approved by the Labour and Employment Department.
2. Obtain prior consent from the State Government where the factory is located.
3. Notify the Chief Inspector under Section 7 of the Factories Act, 1948 before occupying the premises.
Information Required During Factory Registration:
• Full name and address of the Occupier.
• Name of the Factory Manager.
• Number of workers to be employed.
• Nature of the manufacturing process.
• Proposed working hours and shift details.
• Any other details required by local authorities.
Documents Required for Factory License in India
Understanding the list of documents required for Factory License is extremely important to avoid delays or rejections. The documentation is divided into three stages:
Documents for Site/Layout Plan Approval
Before factory registration, the owner must obtain approval for the factory layout plan. The following documents are necessary for this stage:
• Application Form (Factory layout details and room particulars)
• Stability Certificate from a qualified structural engineer
• Fire NOC (No Objection Certificate from the Fire Department)
• Process Flow Diagram outlining the production process
• NOC from Electrical Safety Department
• On-site Emergency Plan
• List of Directors in case of company-owned factories
• Site Notification for emergency and hazard management
• Ownership Proof of the factory premises (sale deed or lease agreement)
• Building Layout Copy
• NOC from Explosives Department (if applicable)
• NOC from Local Municipal Authority
• NOC from Pollution Control Board (UPPCB or respective SPCB)
• MOA and AOA in case of a company
• Safety Report
• Health and Safety Policy
• Board Resolution declaring the occupier of the factory
Documents Required for Factory Registration
After the layout approval, the next step is factory registration. The following documents for Factory License registration are required:
• Photograph of Establishment (external and internal)
• Director Identification Number (DIN) or PAN Card of the applicant
• Identity proof (such as Aadhaar, Passport, or Voter ID)
• Treasury Challan or Bank Receipt confirming payment of the registration fee
Documents for Factory License Renewal
Factory Licenses are not permanent and need to be renewed periodically. The following documents are required for Factory License renewal:
• Duly filled Renewal Application Form
• Copy of the Old Factory License
• Payment Receipt for the renewal fee
It is advisable to begin the renewal process well in advance before the license expiry date to avoid penalties.
Other Important Guidelines for Factory Owners
Factory owners must adhere to the following conditions as per the Factories Act, 1948:
• The Act applies to factories with 10 or more workers using power, or 20 or more workers without using power.
• Factory owners must maintain clean records, employee safety data, and registers as required by law.
• For factories manufacturing hazardous products, stricter safety and compliance norms apply.
• Factories must also comply with labor laws, minimum wages, and ESIC/EPF regulations.
Failure to comply with these norms may lead to cancellation of the license, fines, or closure of the unit.
Role of the Labour Department and Factory Inspectorate
The Labour Department and Chief Inspector of Factories play a critical role in:
• Verifying submitted documents
• Approving building layout plans
• Conducting physical inspections
• Granting or rejecting license applications
• Ensuring that factories operate within legal and safety norms
Their approval is necessary at every stage — from layout approval to license renewal.
Common Mistakes to Avoid While Applying for a Factory License
To ensure a smooth application process, avoid the following errors:
• Submitting incomplete or outdated documents
• Not obtaining required NOCs from fire or pollution control boards
• Providing incorrect occupier or manager details
• Delays in payment or incorrect fee submission
• Skipping the building layout approval before registration
Conclusion
Obtaining a Factory License is not just a legal formality but an important requirement to ensure the safety, health, and welfare of workers. The documents required for Factory License must be compiled carefully and submitted to the right authorities at each stage – site plan approval, factory registration, and license renewal.
Following the proper procedures and maintaining compliance with the Factories Act, 1948 helps factory owners avoid penalties, ensure worker protection, and operate their business smoothly. Every factory, whether engaged in hazardous or non-hazardous activity, must treat the Factory License as a priority before starting operations.
If you need any support in Factory License then you can connect with Compliance Calendar experts through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. What is a Factory License and why is it required?
Ans. A Factory License is an official permit issued by the Department of Factories and Boilers, allowing a manufacturing unit to begin operations legally. It ensures the factory complies with safety, health, and welfare regulations under the Factories Act, 1948. Without this license, running a factory is illegal in India.
Q2. Who needs to obtain a Factory License in India?
Ans. Any unit where:
• 10 or more workers are employed with the use of power, or
• 20 or more workers are employed without using power,
and a manufacturing process is carried out, must obtain a Factory License under the Factories Act, 1948. This rule applies across all states in India.
Q3. What are the key documents required for Factory License registration?
Ans. The main documents required for Factory License registration include:
• Photograph of the establishment
• PAN or DIN of the applicant
• Identity proof (Aadhaar, Passport, or Voter ID)
• Bank challan or treasury receipt for fee payment
Additional documents are required for site plan approval and license renewal.
Q4. What documents are needed for site plan approval before factory registration?
Ans. For site plan approval, the following Factory License Documents are required:
• Application form with factory layout details
• Stability Certificate
• Fire NOC and Electrical Safety NOC
• Process Flow Diagram
• Ownership proof of the premises
• MOA and AOA (for companies)
• Safety Report and Emergency Plan
These ensure the site complies with safety and structural regulations.
Q5. How often does the Factory License need to be renewed?
Ans. The Factory License must be renewed annually or as per the validity period mentioned by the respective state authority. Renewal requires submitting the renewal application form, old factory license copy, and proof of fee payment.
Q6. Can a Factory License application be rejected? If yes, why?
Ans. Yes, a Factory License application can be rejected if:
• Required documents are missing or incorrect
• The building layout is not approved
• NOCs from relevant departments are not obtained
• The factory fails to meet prescribed safety norms
Applicants must ensure all documents are in order to avoid rejection.
Q7. Which government department issues the Factory License?
Ans. The Department of Factories and Boilers, under the Ministry of Labour and Employment of the respective state government, is responsible for issuing the Factory License after verifying the application, documents, and conducting inspections.

Starting a manufacturing unit or factory in India requires compliance with several legal provisions. One of the most important steps in this process is obtaining a Factory License. The Factory License is a mandatory approval document issued by the concerned state government through the Department of Factories and Boilers. This license ensures that all manufacturing activities are conducted in a safe, regulated environment in accordance with the Factories Act, 1948. This article provides a detailed overview of the documents required for Factory License, procedures, legal mandates, and important compliance guidelines that every factory owner must know before beginning operations.

What is a Factory License?

A Factory License is an official permission granted to factory owners by the Department of Factories and Boilers. This license certifies that the factory complies with safety, health, and welfare standards laid down under the Factories Act, 1948. Without this license, no manufacturing unit is permitted to start its operations. The license must be obtained before commencing business and must also be renewed periodically to continue operations lawfully.

Applicability of the Factories Act, 1948

The Factories Act, 1948 applies to any factory:

• Where 10 or more workers are or were employed in the last 12 months and the manufacturing process is carried out with the aid of power.

• Where 20 or more workers are or were employed in the last 12 months and the manufacturing process is carried out without the aid of power.

However, the Act does not apply to:

• Mines,

• Mobile units of the Armed Forces,

• Hotels, restaurants, or eating places.

Objective of the Factories Act, 1948

The main objective of the Act is to regulate the working conditions in factories. It lays down provisions to ensure the health, safety, welfare, and proper working hours for workers. It also includes special provisions for women, children, and young persons working in factories. This law ensures a healthy working environment and prevents exploitation of factory workers.

Why is a Factory License Required?

Obtaining a Factory License is an important step for any manufacturing or production unit operating in India. First and foremost, it ensures legal compliance under the Factories Act, 1948, which mandates that no factory can operate without obtaining a valid license from the appropriate state authority. Running a factory without this license is considered illegal and can lead to heavy penalties or even closure of operations. Moreover, a Factory License plays an important role in protecting worker welfare and safety. It enforces adherence to essential safety measures, working conditions, ventilation, lighting, and sanitation standards, thereby reducing the risk of accidents and promoting a healthier working environment.

Another key purpose of obtaining the license is to facilitate government monitoring and inspections. Licensing gives authorities the ability to conduct timely inspections and audits to ensure compliance with labor laws, environmental norms, and safety protocols. Additionally, prior approval of the factory building plan is a prerequisite before registration, ensuring the layout aligns with statutory norms, including space allocation, emergency exits, and fire safety provisions. Possessing a Factory License gives your business industrial recognition, establishing your unit as a legally authorized and government-recognized entity. This recognition boosts credibility in the eyes of stakeholders, investors, and regulatory bodies, and is often required when applying for loans, tenders, or government incentives.

Safety and Welfare Measures Mandated by the Factory License

Once the Factory License is obtained, the owner must comply with several safety and welfare provisions mentioned in the Act:

Safety Measures in Factories

Safety measures are a basis of responsible factory management and are strictly regulated under the Factories Act to prevent accidents and occupational hazards. One key provision is the prohibition of women and young workers from operating or working near dangerous machinery, which helps reduce exposure to high-risk environments. Additionally, fencing around machinery is mandated to prevent accidental contact with moving parts, thereby reducing the likelihood of injuries.

The law also requires that adequate precautions be taken for workers who operate near hazardous zones, including proper signage and restricted access. Furthermore, protective gear such as safety goggles, earplugs, gloves, and helmets must be provided to employees handling sensitive or dangerous equipment. These measures collectively create a safer workspace and foster a culture of awareness and prevention, which is essential in high-risk industrial settings.

Welfare Measures in Factories

The Factories Act highlights the importance of employee welfare by mandating several facilities that enhance the overall well-being and comfort of workers. Clean and accessible washing and drying areas must be provided so workers can maintain hygiene, especially after handling chemicals or machinery. For physical comfort, restrooms and proper seating arrangements are essential during breaks, allowing workers to relax and rejuvenate.

Larger factories are also required to have canteens and lunchrooms to ensure employees have access to nutritious food within the premises. Moreover, first aid kits and immediate medical support must be available at all times to address injuries or health emergencies promptly. These welfare provisions not only support physical health but also improve morale and productivity by showing that the employer values the well-being of the workforce.

Requirements Before Applying for a Factory License

Before submitting an application for a Factory License, the factory owner must:

1. Get the building layout approved by the Labour and Employment Department.

2. Obtain prior consent from the State Government where the factory is located.

3. Notify the Chief Inspector under Section 7 of the Factories Act, 1948 before occupying the premises.

Information Required During Factory Registration:

• Full name and address of the Occupier.

• Name of the Factory Manager.

• Number of workers to be employed.

• Nature of the manufacturing process.

• Proposed working hours and shift details.

• Any other details required by local authorities.

Documents Required for Factory License in India

Understanding the list of documents required for Factory License is extremely important to avoid delays or rejections. The documentation is divided into three stages:

Documents for Site/Layout Plan Approval

Before factory registration, the owner must obtain approval for the factory layout plan. The following documents are necessary for this stage:

• Application Form (Factory layout details and room particulars)

• Stability Certificate from a qualified structural engineer

• Fire NOC (No Objection Certificate from the Fire Department)

• Process Flow Diagram outlining the production process

• NOC from Electrical Safety Department

• On-site Emergency Plan

• List of Directors in case of company-owned factories

• Site Notification for emergency and hazard management

• Ownership Proof of the factory premises (sale deed or lease agreement)

• Building Layout Copy

• NOC from Explosives Department (if applicable)

• NOC from Local Municipal Authority

• NOC from Pollution Control Board (UPPCB or respective SPCB)

• MOA and AOA in case of a company

• Safety Report

• Health and Safety Policy

• Board Resolution declaring the occupier of the factory

Documents Required for Factory Registration

After the layout approval, the next step is factory registration. The following documents for Factory License registration are required:

• Photograph of Establishment (external and internal)

• Director Identification Number (DIN) or PAN Card of the applicant

• Identity proof (such as Aadhaar, Passport, or Voter ID)

• Treasury Challan or Bank Receipt confirming payment of the registration fee

Documents for Factory License Renewal

Factory Licenses are not permanent and need to be renewed periodically. The following documents are required for Factory License renewal:

• Duly filled Renewal Application Form

• Copy of the Old Factory License

• Payment Receipt for the renewal fee

It is advisable to begin the renewal process well in advance before the license expiry date to avoid penalties.

Other Important Guidelines for Factory Owners

Factory owners must adhere to the following conditions as per the Factories Act, 1948:

• The Act applies to factories with 10 or more workers using power, or 20 or more workers without using power.

• Factory owners must maintain clean records, employee safety data, and registers as required by law.

• For factories manufacturing hazardous products, stricter safety and compliance norms apply.

• Factories must also comply with labor laws, minimum wages, and ESIC/EPF regulations.

Failure to comply with these norms may lead to cancellation of the license, fines, or closure of the unit.

Role of the Labour Department and Factory Inspectorate

The Labour Department and Chief Inspector of Factories play a critical role in:

• Verifying submitted documents

• Approving building layout plans

• Conducting physical inspections

• Granting or rejecting license applications

• Ensuring that factories operate within legal and safety norms

Their approval is necessary at every stage — from layout approval to license renewal.

Common Mistakes to Avoid While Applying for a Factory License

To ensure a smooth application process, avoid the following errors:

• Submitting incomplete or outdated documents

• Not obtaining required NOCs from fire or pollution control boards

• Providing incorrect occupier or manager details

• Delays in payment or incorrect fee submission

• Skipping the building layout approval before registration

Conclusion

Obtaining a Factory License is not just a legal formality but an important requirement to ensure the safety, health, and welfare of workers. The documents required for Factory License must be compiled carefully and submitted to the right authorities at each stage – site plan approval, factory registration, and license renewal.

Following the proper procedures and maintaining compliance with the Factories Act, 1948 helps factory owners avoid penalties, ensure worker protection, and operate their business smoothly. Every factory, whether engaged in hazardous or non-hazardous activity, must treat the Factory License as a priority before starting operations.

If you need any support in Factory License then you can connect with Compliance Calendar experts through mail info@ccoffice.in or Call/Whatsapp at +91 9988424211.

FAQs

Q1. What is a Factory License and why is it required?

Ans. A Factory License is an official permit issued by the Department of Factories and Boilers, allowing a manufacturing unit to begin operations legally. It ensures the factory complies with safety, health, and welfare regulations under the Factories Act, 1948. Without this license, running a factory is illegal in India.

Q2. Who needs to obtain a Factory License in India?

Ans. Any unit where:

• 10 or more workers are employed with the use of power, or

• 20 or more workers are employed without using power,

and a manufacturing process is carried out, must obtain a Factory License under the Factories Act, 1948. This rule applies across all states in India.

Q3. What are the key documents required for Factory License registration?

Ans. The main documents required for Factory License registration include:

• Photograph of the establishment

• PAN or DIN of the applicant

• Identity proof (Aadhaar, Passport, or Voter ID)

• Bank challan or treasury receipt for fee payment

Additional documents are required for site plan approval and license renewal.

Q4. What documents are needed for site plan approval before factory registration?

Ans. For site plan approval, the following Factory License Documents are required:

• Application form with factory layout details

• Stability Certificate

• Fire NOC and Electrical Safety NOC

• Process Flow Diagram

• Ownership proof of the premises

• MOA and AOA (for companies)

• Safety Report and Emergency Plan

These ensure the site complies with safety and structural regulations.

Q5. How often does the Factory License need to be renewed?

Ans. The Factory License must be renewed annually or as per the validity period mentioned by the respective state authority. Renewal requires submitting the renewal application form, old factory license copy, and proof of fee payment.

Q6. Can a Factory License application be rejected? If yes, why?

Ans. Yes, a Factory License application can be rejected if:

• Required documents are missing or incorrect

• The building layout is not approved

• NOCs from relevant departments are not obtained

• The factory fails to meet prescribed safety norms

Applicants must ensure all documents are in order to avoid rejection.

Q7. Which government department issues the Factory License?

Ans. The Department of Factories and Boilers, under the Ministry of Labour and Employment of the respective state government, is responsible for issuing the Factory License after verifying the application, documents, and conducting inspections.