Factory License

When you are applying for Factory License for the first time in online mode certain questions in yes/no options are asked to minimize the data input from you. Kindly chose the option carefully. 

We help our client to properly understand the location to optimist the cost and provide best time frame for material management for their customers. Various Support and preparation of documents required under the Factories Act 1948 for Registration and obtaining a Factory License from the Department. We are here to provide various services that help them to easily set their venture on Indian land. The Pre Setup Services are very important for the Foreign Companies; These Services help the Companies in understanding the India before starting the business in India.

Eligibility Criteria

The below-mentioned factories are required to get factory license under the following conditions.

  • The factory or establishment is holding ten or more workers employed with the use of power for manufacturing activities.
  • The factory or establishment is holding twenty or more workers employed without the use of power for manufacturing activities.

Factory License Procedure

  1. Attach Form No 2 & 3 (in three copis)with submission of required fees .
  2. Fees will depend upon present manpower strength / how many manpower strength yo want to take license and Horse Power used.
  3. kindly attach the descripttionn of manufacturing procees , PCB consent , factry license etc
  4. Submit the form 2 & 3 duly signed with fees challan to Factory inspectorate office. 
  5. If it is new license them factory inspector of your area will come to visit the premises and compliances as per factory act 1948. If you have to renew the license than depends upon the Factory inspector to visit or not.
  6. If their is no query than you will get the license within 3 to 4 months.

License For Factory Setup for a foreign venture. 

The factory setup in India for a foreign venture/otherwise requires a lot of formalities to fulfill. Once a Company Decides to enter into Indian market, it’s important for them to understand the Manufacturing facility location and other benefit.

Inspection Process

The step by step process is involved in the inspection of the site are specified below:

  • Identification of Establishments: The establishments which are to be inspected will be identified using the random computerised risk assessment
  • Inspection by Joint Team: The inspection will be carried out by a joint team of inspectors. The inspecting team will consist of a minimum of two inspectors and one of the respective authority, Assistant Labour Commissioner, Labour Enforcement Officer, Assistant Director Factory as per their availability.
  • Inspection Report: The report of inspection will be uploaded/submitted by the inspecting team on the departmental portal with a unique number.
  • The unique number will be managed by the units/establishments/factories to view and download the report of inspection within 48 hours from their web portal account.
  • Non-Compliance Notice: The department may grant a notice to units / establishments / factories to rectify defects / deviations / non-compliance observed as part of inspection.
  • The establishment to do the necessary/appropriate compliance within 15 days and inform the Labour Department about the same after uploading the compliance report.

Final Action

Acceptance of compliance report or initiation of proceedings.

  • License Approval: If an application is made for the approval of the site for construction or extension of the factory and required plans and specifications, have been submitted by registered post or through the portal to the State Government or the Chief Inspector and if no reply is received within one month from the date of application will be automatically approved. If not approved with thirty days from the date of application is rejected by the system automatically and also the email or SMS is sent to the registered applicant in such cases the applicant is supposed to resubmit the application form by rectifying the mistakes or apply in person.
  • Renewal of License: The validity of the factory license is for one year, so the expired license has to renewed by applying for renewal in the same registration process as mentioned above.


Q:1, What is a ‘Factory’ as per Factories Act 1948?

Factory means any premises where in 20 or more workers are working to carry out a manufacturing process with the aid of powers OR whereon 40 or more workers are working to carry out a manufacturing process without the aid of power.

Also Government has made this act applicable to power looms, saw mills, certain industries which use hazardous chemicals, and certain processes carried out using flammable solvents by publishing a notification, even if the number of workers are less than 10.

Q.2, How the licence is obtained?

After submitting the form no.1 duly filled with all respect and with necessary fees paid and if the factory plans are approved, the officers of directorate visit the factory & if he finds that construction of the factory and machinery layout is as per the approved plan and if the conditions of plan approval are complied , then he recommends to Director Industrial Safety & Health for issuance of licence through his superiors and after getting the approval from the Director, licence is issued.

Licence renewal can be done by Additional director or Joint director.

Q.3, How the licence under Factories act can be renewed?

Licence renewal Form no.1 has to be duly filled and submitted through online system on the portal “https://lms.mahaonline.gov.in” of Industrial safety & health along with necessary fees paid and all other necessary documents. The last date for submission of this Form is 31st October every year. If the application is made after this date, additional 5% fees has to be paid for every month of delay (maximum up to 25%). Licence can be renewed maximum up to 10 years at any single time.

Q.4, For what reasons, the licence under factories act needs to be get amended?

  • If there is change in name of the factory.
  • If there is change in number of workers, or change in Horse power, then application for amendment in licence has to be made in form no. 2 with 10 Rs court fee stamp duly affixed. Difference of fees is required to be paid if the fee structure is changed due to this amendment. Necessary documents like Partnership deed, Board of Directors Resolution etc are required to be submitted for evidence. Form no. 5 is required to be submitted if there is change in Manager.

Q.5, How the management of a factory is supposed to inform any accident under provisions of factories Act 1948?

Any accident which is fatal or any serious accident causing loss of part of body, if worker becomes unconscious or gets severe burn injuries or incident of any dangerous occurrence has to be informed to the Directorate of industrial Safety & Health office within 4 hours by telephone or by a special messenger. And a written report in form 24 is required to be submitted within 12 hours to the Directorate of industrial Safety & Health office.

If accident takes place, which will prevent or will probably prevent the person injured from working for a period of 48 hours, the information of such accident has to be given within next 24 hours.

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