Factory License Process Step explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This step-by-step guide walks you through the complete Factory License process — from eligibility to receiving your certificate — the way our team does it every day.
Who needs Factory License
- Any premises with 10+ workers using power, or 20+ workers without power, engaged in manufacturing
- Manufacturers required to register before commencing operations
- Existing factories renewing or amending their licence
Factory License process — step by step
- Get building plans approved — Obtain approval of the factory building plan and layout from the Chief Inspector of Factories.
- File the licence application — Submit the prescribed form with occupier and manager details.
- Upload documents & pay fee — Attach plans, stability certificate and machinery list; pay the fee based on workers/HP.
- Inspection — A Factory Inspector inspects safety, sanitation and building compliance.
- Resolve observations — Address any deficiencies noted during inspection.
- Grant of licence — The licence to run the factory is issued with registration of the occupier.
Documents you'll need
- Application in the prescribed Form (Form 1/2/4 as per state)
- Building plan approval and factory layout drawing
- Details of manufacturing process and machinery
- List of directors/partners/occupier and manager
- Proof of ownership/tenancy of the premises
- Stability certificate for the factory building
Timeline and validity
| Particular | Details |
|---|---|
| Processing time | Typically 30–60 days including building/plan approval and inspection. |
| Validity | Usually valid for 1 year (renewable) or up to 5–10 years in some states depending on the fee paid. |
| Government fee | Fees are prescribed by each State on the basis of the number of workers and installed horsepower — commonly ₹1,500 to ₹30,000+ depending on scale. |
| Issuing authority | Directorate/Chief Inspector of Factories of the State (Department of Labour) |
Common mistakes to avoid
- Choosing the wrong category or sub-clause on the application form.
- Uploading an address proof that doesn't match the premises declared.
- Skipping Aadhaar/OTP e-verification, which slows approval and can trigger physical inspection.
- Letting the registration lapse — track the validity/renewal date from day one.
After you get Factory License — next steps
Once approved, download and safely store your certificate, display the registration number where the law requires it, and note the renewal date. Keep your books and filings consistent with the details declared during registration — most cancellations happen because ongoing compliance drifts away from what was originally stated.
Related guides on Factory License
- How to Get Factory License (Complete Guide)
- Documents Required for Factory License
- Factory License Eligibility Criteria
- Factory License Fees & Government Charges
- Benefits of Factory License
- Factory License Renewal: Process and Validity
- How to Cancel or Surrender Factory License
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Talk to an expert →Frequently Asked Questions
What is the first step to get Factory License?
Get building plans approved — Obtain approval of the factory building plan and layout from the Chief Inspector of Factories.
How many steps are there in the Factory License process?
There are 6 main steps, from get building plans approved to receiving the certificate.
How long does the Factory License process take?
Typically 30–60 days including building/plan approval and inspection.
Can I apply for Factory License online?
Yes. Factory License is applied for online through the Directorate/Chief Inspector of Factories of the State (Department of Labour); physical visits are rarely needed.
How long is Factory License valid?
Usually valid for 1 year (renewable) or up to 5–10 years in some states depending on the fee paid.