At Corecatalyst Ventures LLP, we help manufacturers and industrial enterprises stay fully compliant with the Factories Act, 1948 by securing the mandatory Factory License required for lawful and safe operations.
Whether you’re starting a new unit or managing an existing one, if your facility employs workers and uses power for manufacturing, a Factory License isn’t optional—it’s essential. It ensures adherence to safety standards, hygiene regulations, and labor law compliance, helping you avoid penalties and maintain operational transparency.
Eligibility assessment and activity categorization
Preparation of site layout plans and safety documentation
Filing of license application with the Chief Inspector of Factories
Coordination for departmental inspection and approvals
Contact Our Team for Factory Compliance Support
A Factory License is a mandatory approval issued under the Factories Act, 1948, ensuring worker safety, legal compliance, and operational transparency. Before a factory can commence operations, it must register with the Department of Factories and Boilers, undergo safety inspections, and obtain a valid license. This license serves as official authorization for manufacturing activities, regulating working conditions, power usage, and labor welfare.
1. Business Identity Documents
Certificate of Incorporation / Partnership Deed
Memorandum & Articles of Association (MOA & AOA)
PAN & GST Certificate
ID Proofs of Directors/Partners/Proprietor (Aadhaar, PAN)
2. Property Documents
Ownership Deed or Rent/Lease Agreement
Property Tax Receipts
Land Use Conversion Certificate (if applicable)
| Step | Description |
|---|---|
| Step 1: Review Eligibility Criteria |
Confirm if your manufacturing unit meets the definition of a ‘factory’ under the Factories Act. Determine the appropriate license type based on workforce size and industry type. |
| Step 2: Prepare Required Documents |
Collect all business identity documents, property papers, technical documents, and regulatory approvals. Ensure factory layout plans conform to safety standards. |
| Step 3: Complete Application Form |
Fill Form No. 2 (for new factories) or Form No. 3 (for renewal) under the Factories Act. Provide accurate details about the factory, manufacturing processes, and workforce. |
| Step 4: Pay License Fee |
Calculate and pay the license fee based on the number of workers and power usage. Retain payment receipt for records and follow-up. |
| Step 5: Submit Application |
Submit completed application with all supporting documents to the Chief Inspector of Factories. Alternatively, submit application through the state’s online factory license portal (if available). |
| Step 6: Site Inspection |
Factory inspectors visit the premises to verify compliance with safety standards. Prepare for assessment of machinery, working conditions, ventilation, and emergency protocols. |
| Step 7: License Issuance |
Upon successful inspection and verification, the Factory License is issued. Display the license prominently at the factory premises as required by law. |
Initial Validity:
Factory Licenses are generally issued for 1 to 5 years, depending on state regulations.
Renewal Timeline:
Submit renewal applications 30–60 days before the license expiry to avoid disruptions.
Renewal Process:
The renewal procedure is similar to the initial application but typically requires fewer documents if there are no major changes in factory operations.
Late Renewal Penalties:
Failure to renew on time may result in penalties ranging from ₹5,000 to ₹25,000 or more.
We simplify the entire factory license process, ensuring fast approvals, accurate documentation, and full legal compliance. Our team guides you from application to license issuance, so you can focus on running your business.
