Factory Rules 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.
Chapter XII of the Occupational Safety, Health and Working Conditions (Bihar) Rules, 2026 (rules 64 to 78) replaces the old Bihar Factories Rules, 1950 for factories in Bihar. It covers plan approval, the stability certificate, the factory licence and its renewal, amendment and transfer, the list of dangerous manufacturing processes, site appraisal, the duties of an occupier running a hazardous process, medical examination, and appeals. This article takes them in the order an occupier meets them.
The rules are the Occupational Safety, Health and Working Conditions (Bihar) Rules, 2026, notified under notification 1/OSHC-01/2021-100, as notified on 30 June 2026 and published in the Bihar Gazette (Extraordinary) No. Patna 699 of 1 July 2026. Rule 1(3) says they come into force on the date of their publication in the Official Gazette. Plans are deemed approved if no order comes within thirty days (rule 64(2)(v)). A licence is valid up to a maximum of 10 years (rule 64(5)(v)). Amendment is applied for within fifteen days of a change, for Rs. 500 (rule 64(7)).
Later amendments and State notifications under these rules should be checked in the State Gazette. A labour law compliance review can sort which of the steps below apply to a given factory.
Plans, stability and the licence (rule 64)
| Step | Rule | As printed |
|---|---|---|
| Plans | 64(1) | The State Government or Chief Inspector-cum-Facilitator may require submission of plans drawn to scale showing the site with latitude and longitude of all corners, surroundings, the plan, elevation and cross-sections, lighting, ventilation, means of escape in case of fire and the position of plant, machinery, aisles and passageways |
| Prior permission | 64(2) | Needed to use a site for a factory, to construct, reconstruct, extend or take into use a building, or to extend plant or machinery; application in Form XXII electronically; approval electronically with conditions, or a speaking order after a hearing; deemed granted if no order within thirty days of uploading, with an automatic certificate of deemed approval |
| Stability | 64(3) | No manufacturing process in a new or extended building until a certificate of stability from a competent person is accepted by the Chief Inspector-cum-Facilitator |
| Licence application | 64(4) | Electronically in Form XXIII to the Inspector-cum-Facilitator; a factory already in use on commencement of the rules applies within six months of commencement |
| Timing and fee | 64(5) | At least fifteen days before commencing any manufacturing process, with online payment of the fee as per Schedule III; the licence is granted in Form XXIV; if no order is communicated within 30 days it is deemed granted |
| Validity | 64(5)(v) | Ceases on closure of the manufacturing process or other change or cancellation; valid up to a maximum of 10 years |
| Use without licence | 64(10) | No premises used as a factory and no manufacturing process carried on unless a licence has been issued |
Schedule III (Schedule A) sets the licence fee by the maximum number of persons proposed to be employed on any one day and the total rated capacity (power) of installed machinery in horse power, with Schedule B for electricity generating and transforming factories. The fee tables run to many figures and are read from the Schedule itself; the rules do not state a single flat fee. Our post on rules 22 and 23 of the OSH Central Rules, factory cleanliness, ventilation, temperature and humidity covers separate Central factory rules.
Renewal, amendment and transfer (rule 64(6) to (9))
| Item | As printed |
|---|---|
| Renewal | Initially for 10 years, then auto-renewed for the number of years applied for, up to ten years at a time, on payment of the prescribed fee per Schedule II, provided the factory meets the safety guidelines |
| Renewal application | In Form XXIII with a self declaration that no specification change has occurred, not later than the date the licence expires |
| Late renewal | After 30 days from expiry the late fee is 50% of the prescribed fee; after 90 days it is hundred per cent of it |
| Cancellation | If not renewed within 02 years from expiry, the licence is cancelled |
| Amendment | Within fifteen days of a change in name, maximum power installed, maximum number of persons employed or any other change, in Form XXV; fee five hundred rupees, plus any increase in the licence fee if workers or installed capacity rise; the licence ceases to be valid after a change unless the application is filed and paid within fifteen days; prior approval of the Chief Inspector-cum-Facilitator |
| Transfer | New occupier applies within 30 days in Form XXVI with evidence; fee one thousand rupees; on the death or insolvency of the licensee the successor applies within 01 month, without penalty meanwhile |
| Fees | Paid online; a rejected application's fee is non-refundable (rule 64(9)) |
Dangerous processes, site appraisal and common facilities (rules 65 to 68)
Applications for permission under section 79(2) go electronically with plans, and are deemed granted if no order is communicated within a period not exceeding thirty days (rule 65). Rule 66 puts common facilities in the joint liability of the owner of the premises and the occupiers: safety, fire prevention and protection, access, hygiene, occupational health, ventilation, temperature, emergency preparedness and response, canteens, shelter, rest rooms and crèches.
Rule 67 declares twenty-eight manufacturing processes or operations dangerous under section 82, including aerated water, electrolytic plating with chromium compounds, electric accumulators, glass, grinding or glazing of metals, lead, petrol gas, highly flammable liquids and gases, tanning, chemical works, asbestos, corrosive substances, solvent extraction, benzene, dangerous pesticides, operations involving high noise levels, foundries, and the transformation of stone or other material containing silica. The provisions in Schedule IV apply to these factories. The occupier pays the fee for medical examination by a qualified medical practitioner; a person is examined before employment in a dangerous operation and then from time to time but not later than six months; and the records are kept available to the Inspector-cum-Facilitator and preserved until one year after the worker leaves.
The Site Appraisal Committee under rule 68 is chaired by the Chief Inspector-cum-Facilitator and includes representatives of the fire service, industries, factory advice service institutes, forest and environment, and the Bihar State Pollution Control Board. Applications for appraisal of sites for hazardous-process factories are in Form XXVII, submitted electronically to the Labour Resources and Migrant Workers Welfare Department. The Secretary registers and acknowledges them within 7 days and refers all registered applications to the Committee within one month of receipt.
Hazardous process duties (rules 69 to 75)
| Duty | Rule | As printed |
|---|---|---|
| Disclosure to workers | 69(A) | List of hazardous processes, safety data sheet locations, hazards, protective equipment, symptoms, spill response and the workers' role in the emergency plan, by booklets, leaflets and cautionary notices in the language understood by the majority |
| To the public | 69(B) | In consultation with the District Disaster Management Authority; in Hindi and English, with hoardings around the boundary and in affected habitation |
| Local authority, Chief Inspector, District Emergency Authority | 69(C) to (E) | Written disclosure of the information, safety data sheets and details for an off-site plan |
| On-site emergency plan | 69(F) | Draft submitted to the Chief Inspector-cum-Facilitator for approval; copy to the District Emergency Authority; workers told; rehearsals periodically |
| Disaster control and management plan | 69(G) | Draft to the Chief Inspector-cum-Facilitator and District Emergency Authority; rehearsals at least once a year |
| Withholding information | 69(H) | Representation to the Chief Inspector-cum-Facilitator; appeal to the State Government within a period of 30 days |
| Safety and health policy | 70 | Written policy; exemption for factories under section 2(w)(i) with fewer than 50 workers and section 2(w)(ii) with fewer than 100 workers unless hazardous or dangerous; copy signed by the occupier to the Inspector-cum-Facilitator, Chief Inspector-cum-Facilitator and local authority annually |
| Worker access to records | 73 | Health records accessible once in six months or immediately after a medical examination, whichever is earlier, and on the other occasions listed |
| Supervisors | 74 | A degree in Chemistry or diploma in Chemical Engineering or Technology with 5 years' experience, or a Master's degree in Chemistry or a degree in Chemical Engineering or Technology with 5 years |
| Medical examination | 75 | Before employment, then once in a period of 6 months, in the Health Register in Form XXVIII; a certificate of fitness in Form XXIX before first employment |
Rules 71 and 72 add that information is furnished electronically to the Chief Inspector-cum-Facilitator and updated on any change in process or after a serious accident, and that measures on handling and disposal of hazardous substances are publicised to workers and the public. Rule 76 says permissible exposure levels are as per Schedule I of the rules for the purposes of section 88.
Appeals and exemptions (rules 77 and 78)
An appeal under section 90 lies to the Chief Inspector-cum-Facilitator, or to the State Government (or authority it appoints) where that officer passed the order, in the form of a memorandum of grounds bearing a court fee stamp under Article 11 of Schedule II to the Court Fees Act, 1870, with a copy of the order (rule 77(1)). The appellate authority may call on an industry body to appoint an assessor within a period of 14 days; the bodies named are the Bihar Chamber of Commerce, the Bihar Sugar Mills Association, the Bihar Industries Association and the Engineering Association of India. Under rule 78 the State Government may, by an order in writing effective after publication in the Gazette, exempt persons holding supervision, management or confidential positions or any class of establishment on conditions it considers expedient.
A worked example
Rohtas Chemicals Pvt Ltd plans to extend a plant at Sasaram. It files Form XXII for plan approval; if no order is made in thirty days, deemed approval follows. Its processes include a chemical works, so it keeps the Schedule IV medical examinations at six-monthly intervals. It applies for the licence in Form XXIII at least fifteen days before starting. When the unit adds workers and installed horse power, it applies within fifteen days in Form XXV and pays Rs. 500 plus the increase in fee. It prepares a draft on-site emergency plan for the Chief Inspector-cum-Facilitator and rehearses the disaster control plan once a year.
Need help with a factory licence in Bihar?
Plan approval, the licence, amendments and the hazardous-process plans each carry their own period. Our labour law compliance team can set a dated plan for a new unit or an extension, prepare Forms XXII to XXVII and check your emergency and disaster plans against rule 69.
Key takeaways
- Plan approval is deemed granted if no order comes within thirty days (rule 64(2)(v)).
- The licence is applied for in Form XXIII at least fifteen days before starting and is valid up to 10 years (rule 64(5)).
- Late renewal fee is 50% after 30 days and hundred per cent after 90 days; no renewal after 02 years (rule 64(6)).
- Amendment within fifteen days, Rs. 500 plus any fee increase; transfer within 30 days, Rs. 1000 (rule 64(7) and (8)).
- Hazardous-process factories keep an emergency plan, a yearly rehearsed disaster plan and six-monthly medical examinations (rules 69 and 75).
Read next
- OSH (Bihar) Rules, 2026: audio-visual workers, beedi and cigar licences and plantation workers
- OSH (Bihar) Rules, 2026: offences, compounding, miscellaneous rules, schedules and forms
- Rules 22 and 23 of the OSH Central Rules: factory cleanliness, ventilation, temperature and humidity
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.