Factory Licence
Approval under the Factories Act covering plant layout, worker safety and permitted headcount.
A factory licence is the approval required under the Factories Act, 1948 before a manufacturing premises may operate. It is granted by the Chief Inspector of Factories for the state, and it covers the plant layout, worker safety, sanitation and the maximum number of workers permitted.
It is not a formality. The Act imposes personal liability on the occupier and the manager, and prosecutions following accidents at unlicensed or non-compliant premises are directed at individuals, not only at the company.
Choose a package
Chennai
₹47,404 plus GST
- Factory License Preparation
- Complete Application Process
- Valid for one calendar year
Out of Chennai
₹53,104 plus GST
- Factory License Preparation
- Complete Application Process
- Valid for one calendar year
When the Act applies
- Ten or more workers, where a manufacturing process is carried on with the aid of power
- Twenty or more workers, where the process is carried on without power
- Some states apply higher thresholds, so the position depends on where you operate
- The count includes workers employed on any day in the preceding twelve months
- Certain hazardous processes are covered regardless of the number of workers
Approval of plans comes first
Before the licence itself, the building plans and the layout of the plant must be approved by the Chief Inspector. Constructing first and applying afterwards is a common and expensive sequence error, because approval may require changes to what has already been built.
The plans have to show machinery placement, means of escape, ventilation, lighting, washing and sanitary facilities, and provision for the disposal of effluent.
What the licence brings with it
- Registers of adult workers, leave, overtime and accidents
- Annual and half-yearly returns to the Inspectorate
- Notice of periods of work displayed at the premises
- Health and safety provisions — drinking water, latrines, first aid, canteen and creche by size
- Appointment of a safety officer where the workforce crosses the prescribed size
- Renewal before expiry, and amendment when the licensed capacity changes
How we handle it
- 1 Assessing applicability We confirm whether the Act applies to your premises given the worker count, the use of power and the nature of the process.
- 2 Plan approval Building and layout plans are prepared and submitted for approval before the licence application.
- 3 Licence application The application is filed with the occupier and manager details and the prescribed fee, which scales with workers and power.
- 4 Inspection The Inspectorate inspects the premises. We tell you in advance what will be examined.
- 5 Compliance response Any observations are addressed and the compliance report filed.
- 6 Licence issued The licence is granted for display, and we set the renewal and return reminders.
Frequently asked questions
At what point do I need a factory licence?
Ten or more workers with power, or twenty or more without, where a manufacturing process is carried on. Some states set higher thresholds, and hazardous processes are covered regardless of headcount.
Do I need plan approval before construction?
Yes, and this is the step most often taken out of order. Building first risks having to alter completed work to obtain approval.
Who is the occupier?
The person with ultimate control over the affairs of the factory. For a company it must be a director, and the occupier carries personal liability under the Act.
Is it the same as a trade licence?
No. A trade licence is municipal permission for the activity at that address. A factory licence is state approval under the Factories Act covering safety and working conditions. A manufacturing unit often needs both.
What happens if I operate without one?
It is an offence carrying fines and imprisonment, with personal liability on the occupier and manager. Insurance cover is also likely to be affected in the event of an accident.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about Factory Licence
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
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