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Factory License

Factory License Form

    Personal information:

    What is Factory License?

    To protect the workers and ensure that the owner provides a healthy environment, the government has introduced the Factory Act 1948. As per the Factory Act 1948, every factory owner must register their premises with the local authorities before commencing their business. A factory License acts as a document of approval given by authorities to carry out manufacturing activities. The Department of Factories and Boilers issues Factory License. The Factories and Boilers Department must keep a check on workers’ health, safety, and welfare.

    Also, a factory registering under the Factories Act, 1948 must obtain its building plan approval from the labour and employment department before covering themselves for a factory registration.

    Guidelines to be adhered to by the Factories

    The government has laid down the guidelines that are required to be followed by those Factories which-

    The factories are broadly divided into two sub-categories depending on the process-

    • Hazardous
    • Non-hazardous

    Benefits of Obtaining a Factory License

    The main motive for obtaining the factory license is to ensure that appropriate safety measures are adopted to promote the employees’ safety, welfare, and health. The benefits of getting a Factory License are mentioned-below-

    Provides Specific Provision For Employees

    The Act specifies the provisions associated with female employees and young people, wages for employees, work hours, working conditions, etc.

    Avails Legal Benefits

    The factory owner can avail of the legal benefits provided by the government under different schemes.

    Enhances Productivity

    Proper enactment of compliances and guidelines of the Factories Act, 1948 enhances the employees' productivity.

    Regulates Various Matter

    It helps in regulating various matters such as- Working hours, Wages/payments, Leaves, Holidays, Enlistment of juveniles/women, Hiring and termination of work,



      Documents required for Obtaining the Factory License

      1. Form-1 (Particular of Room in The Factory)

      2. Copy of the factory building plan,

      3. Id and Address proof of the applicant

      4. A detailed list of all directors

      5. MOA, AOA, and Board resolution

      6. Partnership deed, if any

      7. Bank account details

      8. Expected Date of commencement of work,

      9. Payment receipts

      10. Land deeds

      11. Consent from all authorities

      12. Particulars of equipment

      13. Particulars of hazardous and non-hazardous wastes

      14. Particulars on raw materials, by product, and finishing product along with the process procedure in a flow chart.

      15. Tax receipt.

      Registration Procedure of Factory License in India

      Section 6 of the Act empowers the State government to monitor the Licensing and registration rules of the factories Act.

      • Description of factory or business plan has to be submitted to the appropriate authority of the state government.
      • Replacement or expansion of any plant or machinery is not charged if the same is in working condition.

      The government of India has set a simple process to obtain a Factory license. The process varies in the case of hazardous factory licenses and non-hazardous factory licenses. The process for obtaining a Factory License involves the following steps: –

      • Filing Application.
      • Submission of documents.
      • Payment of Requisite fees.
      • Obtaining a license

      Before applying, the applicant needs to get factory plan approval from the respective authorities. Once this approval has been obtained, the applicant can start obtaining a factory license.


      Submission of Plan

      The plan should be submitted as per the rules laid down by the state government. There is a requirement of prior consent for expansion or construction of any Industrial facility by the State Government or Chief Reviewer.


      Details by Owner

      1. Manufacturing Process Type
      2. Number of employees
      • Name of the factory and its owner
      1. Address of the factory
      2. Name of the manager
      3. Details of machinery deployed


      Submission of Plan

      The Application for approval is required to be submitted in Form -1 in the prescribed manner along with all duly signed documents.


      Payments of Fees

      Payment fees for the license are to be submitted once approval of Application is obtained.


      Grant of License

      After payment of fees and inspection is Department is satisfied that all documents and application form is as per desired rules and norms, then the license is issued by the Department.

      Factory License Renewal

      Factory License is valid for up to one year, and so it should be renewed before its expiry. The process for renewal of license is the same as the registration process. Documents required for renewal of Factory license are:

      • Form-4
      • Form-4B
      • Treasury of Online Challan

      In case default has been made in the renewal of the Factory license, a minimum of 10% of the license fee has been prescribed as a penalty which shall increase by 10 % every month.

      Process for Suspension of a Factory License Voluntarily

      In case the licensee needs to surrender the factory license to the government, the below-mentioned process should be followed-

      • Apply for suspension with the reason for the same.
      • Attach the requisite documents.
      • Please provide the details of the workers along with their grievances.
      • Once the application is submitted, the authority will take the necessary steps for the suspension of a factory license.

      Frequently Asked Questions (FAQs)

      Every manufacturing unit is eligible to obtain a factory License.
      A manufacturing factory employing 10 or more workers with the aid of power or 20 or more workers without the aid of power can be issued the factory license.
      No, a Factory license cannot be granted in the residential area.
      The license remains valid for 1 Year.
      Documents are required for the renewal of the factory license:

      • Form-4
      • Form-4B
      • Treasury or Online Challan
      The basic responsibilities of an occupier are to make sure-

      • The welfare of workers,
      • Their health conditions,
      • Their work environment,
      • Wages,
      In India, the Act applies to all states and all manufacturing processes and establishments. In some cases, the Act is also applicable to factories that belong to the Central/ State Government.
      Steps are required for obtaining the Factory License:

      • Application
      • Documentation
      • Payment of requisite Fee
      • Obtaining a license.
      The factories are broadly divided into 2 sub-categories-

      • Hazardous
      • Non-Hazardous.
      TOR means actual time of completion divided by the time of completion of the work stipulated in the agreement plus extended time period without levy of compensation
      Enlistment can be considered in any class in Buildings & Roads category or Horticulturist, enlistment can be considered in any class in Buildings & Roads category or Horticulture without work experience but with prescribed financial soundness, subject his holding a valid PPO

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      Melbourne, Australia
      (Sat - Thursday)
      (10am - 05 pm)

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