A manufacturing unit that meets the legal definition of a factory needs plan approval and a licence from the state's Chief Inspector of Factories before starting operations. Traditionally under the Factories Act, 1948 this covered premises with 10 or more workers using power or 20 or more without; the Occupational Safety, Health and Working Conditions Code, 2020 raises these thresholds, so check which regime your state applies.
Who needs a factory licence
Premises where a manufacturing process is carried on with the prescribed number of workers. The OSH Code raises the thresholds to 20 workers with power and 40 without, as states operationalise it.
Plan approval
- Site and building plans
- Machinery layout and process flow
- Ventilation, lighting and safety provisions
Licence application
- Apply online on the state labour or factories portal.
- Upload approved plans, ownership documents, occupier and manager details.
- Pay the fee based on workers and horsepower.
- Inspection and grant of licence.
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Get expert help →Ongoing compliance
- Safety, health and welfare provisions
- Registers of workers, hours and accidents
- Annual returns
- Renewal before expiry
Frequently asked questions
Is a factory licence needed for a small workshop?
Only if it meets the worker and power thresholds for a factory under the law applicable in your state.
Who is the occupier of a factory?
The person with ultimate control over the factory's affairs, such as a director for a company, who bears legal responsibility.
How long is a factory licence valid?
Validity is set by state rules, often for one or more years, with renewal on payment of fees.
What changed under the OSH Code?
The Code consolidates factory, mines and other safety laws, raises factory thresholds and introduces a common licence framework as states notify their rules.
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