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Factory License

Factory License: Ensuring Compliance & Smooth Operations

A Factory License is a mandatory certification required for manufacturing units under the Factories Act, 1948. It ensures that industries comply with safety, health, and welfare regulations to protect workers and maintain legal compliance. The license is issued by the State Government’s Labour Department and varies based on the size, location, and type of industry.

To obtain a Factory License, businesses must submit an application along with documents such as layout plans, details of machinery, worker strength, and environmental clearances. Regular inspections are conducted to verify compliance with labor laws, workplace safety, and pollution control norms.

Operating a factory without a valid license can lead to legal penalties, fines, or even shutdowns. Renewal of the license is also necessary to continue operations smoothly. Factory owners must ensure compliance with fire safety norms, employee welfare measures, and environmental regulations to maintain their license.

Whether starting a new factory or expanding operations, obtaining a Factory License is essential for legally running a business while ensuring a safe and ethical work environment. Consulting legal experts can streamline the process and help avoid unnecessary legal complications.

Frequency Asked Question

  • A Factory License is a legal permit under the Factories Act, 1948, required for manufacturing units to ensure compliance with safety, health, and welfare regulations.
  • Any manufacturing unit with 10 or more workers (if using power) or 20 or more workers (if not using power) must obtain a Factory License.
  • The application is submitted to the State Labour Department along with necessary documents, such as factory layout plans, ownership proof, and safety clearances.
  • Factory Layout Plan approved by the relevant authorityProof of ownership or lease agreement
  • Details of workers and machinery
  • NOCs from Fire, Pollution, and Health Departments (if required)
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  • The process typically takes 30-60 days, depending on state regulations and document verification.
  • Worker safety measures, health provisions, working hours, hazardous material handling, and record-keeping.
  • Yes, Factory Licenses must be renewed annually or as per the state-specific validity period.
  • Running a factory without a valid license can lead to hefty fines, legal action, or even closure of operations.
  • Yes, a transfer application must be submitted to the Labour Department along with relevant documents.
  • No, each state has its own rules and online or offline application procedures under the Factories Act, 1948.
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