Factory licence
A factory needs a licence (and approval of its plans) from the state factories department before it starts work. Under the Occupational Safety, Health and Working Conditions Code 2020, in force from 21 November 2025, a factory is a unit with 20 or more workers using power, or 40 or more without.
- Issued by
- State labour / factories department
- Law
- OSH Code 2020 (replacing the Factories Act 1948) and your state's rules under it
- Where to apply
- Your state labour department's portal
TaxClue does not handle this service. It is on the checklist because many of our clients need it. Raise a request and we will try to connect you with someone who can do it, where possible.
How Factory licence works
The usual picture. Procedures, fees and forms differ by state and authority — always check the current rules before you apply.
Who needs it
- Manufacturing units at or above the worker threshold
- Units that expand to cross the threshold
- Hazardous-process units, which face extra conditions
Documents usually asked for
- Site and building plans for approval
- Ownership or lease of the premises
- Manufacturing process and machinery details
- Pollution consent and fire NOC where applicable
- Details of the occupier and manager
The process
- Get the factory plans approved
- Apply for the licence on the state labour portal
- Inspection where the state requires it
- Licence granted; returns and renewals as the state rules require
What we can do today
The other registrations the same businesses need — these we handle end to end.
Registrations we handle
Often needed alongside Factory licence.
Full checklists that include it
Every registration for these industries, in order.
Read more
Our own write-ups on the subject.
- Manufacturing account: prime cost, factory overheads, work-in-progress and cost of production, and how it feeds the trading account →
- Labour cost control: idle time, overtime premium, labour turnover and incentive plans, and how to charge each to cost, with a worked example for a small factory →
- Overhead allocation, apportionment and re-apportionment: how factory overheads reach each production department, with a worked example for a small manufacturer →
- Gujarat Occupational Safety, Health and Working Conditions Rules, 2025: beedi and cigar premises, approval of factory plans, the factory licence, its fees, amendment, renewal and appeals →