Factory License Registration Online - Process, Documents & Fees

To get a factory license in India, occupiers have to get a building plan approval before the registration process. The process includes building layout and No-Objection Certificates, file submissions, and inspection. Read the steps below:

• Step 1: Draft Layout - Appoint a professional architect and create a building layout, site plans, building elevations, and machinery layouts.
• Step 2: Obtain NOCs - Apply for No-Objection Certificates from the Fire, Water, and Electricity Department. To get a Pollution NOC, occupiers must submit an application form to the state-specific pollution control board.
• Step 3: Gather Documents - Collect all the important documents, including factory address, location, and NOCs for submission at the time of form filing.
• Step 4: File Form 1 - Fill the statutory application forms, including Form 1 and Form 1-A, online through a state single window portal or labour portal.
• Step 5: Technical Evaluation - The Chief Inspector of Factories will technically evaluate the drawings for compliance with safety and the National Building Code.

Under the Factories Act 1948, applicants are required to submit the following documents for factory license registration in India:

The factory license fees in India may vary from state to state and depend upon several factors, such as the number of employees, size and scale, validity timeline, and machinery capacity.

Here is a table representing a state-wise registration cost with a specific portal and validity:

Note: Government fees vary by state and depend on factors such as workforce, power capacity, and factory scale. Professional fees and applicable GST are separate and will be charged in addition to government fees.

In India, the factories are classified under two broad categories based on their operating process, such as hazardous and non-hazardous factories. The sectors which needs a factory license are alcohol, tobacco, defence, explosives, and hazardous chemicals.

Under the Factories Act, 1948, it is compulsory for premises that are engaging in manufacturing activities. Factory license registration in India is essential for manufacturing units that fall under the following:

• Employees with 10 or more workers who use electrical power for operating their business.
• Employees with 20 or more employees without the involvement of an electricity supply.
• Handles hazardous processes regardless of the total employee count.
• An occupier/manager who is responsible for commencing the manufacturing unit.
• If no manager is named, the occupier is deemed a manager by default.

The Government of India replaced 29 fragmented central labour laws with a unified four labour codes on 8th May, 2026, including the Code of Wages, Occupational Safety, Health and Working Conditions Code, Industrial Relations Code, and Social Security Code, which were implemented in 2025.

The earlier system operated under various labour rules and regulations, which led to inaccuracies in handling compliance and workers' safety. Compliance was heavily reliant on manual registers and local practices. This led to delayed salary payments, an informal hiring process, and inaccurate basic pay to workers. But the new labour code has changed all the old patterns and impacted factory workers in numerous ways.

Let's understand the difference between the old labour code and the new with the help of a concise table:

Here is the main difference between a factory license and a trade license, including its primary aim, issuing authority, and eligibility criteria:

Occupiers must obtain a trade license even after getting a factory license to trade or operate legally from that specific local ward or zone.

The following details cover the processing time, validity, and renewal period of a Factory License.

As per Section 92 of the Factories Act, 1948, violation of rules can lead to a legal and compliance risk for an occupier.

• Hefty monetary fines around ₹1,00,000 or ₹2,00,000 depending on state amendments under section 92.
• Section 2 (n) states that both occupiers and managers are liable for violating laws regulated under the Factories Act.
• If the violation continues after conviction, ₹1,000 will be charged on a daily basis.
• The authorities can shut down the manufacturing unit on an immediate basis.
• Authorities can disconnect the vital supplies, such as electricity and water.

In India, a factory license is a legal requirement for entities and establishments involved in manufacturing processes and certain other specified activities. There are several benefits of factory license registration for both the government and the business owners:

• Legal Compliance & Safety - It ensures the business complies with the legal and safety standards of factories. Businesses can avoid legal issues and penalties.
• Employee Welfare - By obtaining a factory license, businesses contribute to employees' welfare, including working hours, leave policies, and various permit amenities.
• Access to Government Incentives - With an authorised license, businesses become eligible for incentives, subsidies, and supporting programs for industrial growth and compliance with regulations.
• Environmental Compliance - Factory license ensures that industrial activities don’t adversely impact the environment and promotes sustainable and responsible business practices.
• Facilitates Expansion - When the business expands, a legal certification streamlines the process of obtaining approvals and permits for expansion.
• Consent to Establish - Before building construction, the site layout is cleared, and work on the pollution control framework is initiated.
• Tender Eligibility - Public sector and government procurement portals treat a valid factory license and a valid Consent to Operate (CTO) as mandatory pre-qualified criteria

Getting a certificate, after a factory license registration in India, occupiers must follow certain rules and regulations to ensure safety and preventive measures.