A Factory License is a mandatory approval required for manufacturing units under the Factories Act, 1948. It ensures that the factory complies with safety, health, and welfare standards before commencing operations. This article provides an overview of the factory license process, eligibility, documents required, and compliance requirements.

What is a Factory License?

A factory license is an official document issued by the respective State Government’s Labour Department or Chief Inspector of Factories. It ensures that the factory is legally registered and follows the necessary health, safety, and welfare measures for workers.

Who Needs a Factory License?

A factory license is required for manufacturing units that meet the following criteria:

• Employing 10 or more workers with power-operated machinery.
• Employing 20 or more workers without power-operated machinery.
• Engaged in manufacturing activities as per the Factories Act, 1948.

Benefits of Obtaining a Factory License

• Legal Compliance: Ensures adherence to laws and regulations.
• Worker Safety & Welfare: Provides a safe working environment.
• Avoiding Penalties: Prevents fines and legal actions.
• Business Credibility: Enhances trust among employees, customers, and authorities.

Documents Required for Factory License Registration

To obtain a factory license, applicants must submit the following documents:

1. Factory Layout Plan – Blueprint of the premises showing machinery layout and ventilation.
2. Owner’s Identity Proof – Aadhaar card, PAN card, or passport.
3. Land Ownership Proof or Lease Agreement – Proof of possession of the land.
4. Partnership Deed / Company Incorporation Certificate – In case of a partnership or private limited company.
5. List of Directors/Partners – With their details.