Factory License

“Licensed to Build, Powered to Succeed.”

A Factory License is a mandatory legal requirement for manufacturing units to operate in India. Issued under the Factories Act, 1948, it ensures that businesses comply with safety, health, and welfare standards for workers. Obtaining this license is crucial for running a compliant and efficient manufacturing setup.

What is a Factory License?

A Factory License is a government-issued permit that authorizes the operation of a factory or manufacturing unit. It certifies that the facility adheres to statutory regulations related to worker safety, environment, and operational standards.

Why is a Factory License Needed?

Legal Compliance: Operate lawfully under the Factories Act.
Worker Safety: Promotes a safe and healthy work environment.
Operational Authorization: Ensures your factory meets government standards.
Avoid Penalties: Prevents hefty fines and shutdowns due to non-compliance.
Credibility: Builds trust with stakeholders and workers.

Documents Required

Application Form (duly filled).
Proof of Ownership or Lease Agreement of the premises.
Building Plan approved by the local authority.
List of Machinery installed, including power capacity.
Identity and Address Proof of the applicant.
Partnership Deed or Memorandum of Association (MOA) for companies.
Consent Certificate from the Pollution Control Board.
Fire Safety Certificate.
Proof of Registration under the GST Act.
Challan Receipt of the prescribed fee.

Our Process

Consultation: Understanding the client’s factory operations and requirements.
Document Assistance: Guiding on preparing and arranging required documents.
Application Filing: Submitting the license application to the concerned authority.
Inspection Coordination: Liaising with inspectors for site verification.
License Approval: Obtaining and delivering the license promptly.

Who Should Opt for This Service?

Manufacturing Units operating with 10 or more workers (power-operated).
Non-Power-Operated Units employing 20 or more workers.
Small-Scale Industries (SSI) requiring formal operations.
Businesses Planning Expansion of factory setups.
Factories Handling Hazardous Materials needing special permits.

Benefits of a Factory License

Legal Operation: Ensures lawful functioning of your factory.
Worker Trust: Promotes a safer work environment for employees.
Market Credibility: Enhances your brand’s reliability and trustworthiness.
Avoid Disputes: Protects against legal issues and penalties.
Efficient Management: Streamlines regulatory compliance.

Conclusion

A Factory License is essential for ensuring legal, safe, and smooth operations of a manufacturing unit. At One Tax Consultant, we provide end-to-end support to simplify the licensing process, helping you focus on growth while staying compliant.

FAQs on Factory License

What is the validity of a Factory License?

It is typically valid for 1 year, requiring annual renewal.

Can the license be amended?

Yes, it can be amended in case of changes like production capacity, machinery, or ownership.

How long does it take to obtain a Factory License?

The process usually takes 30–45 days, depending on state regulations.

What happens if a factory operates without a license?

Operating without a license can result in penalties, closure, or legal action.