Factory License Registration in Andhra Pradesh - Process, Fees & Documents

In 2026, the registration fees for factory license registration depend upon a variable sliding scale. This fee is typically determined by the maximum number of workers employed on any day, total HP (Horsepower), and Kilowatt (KW) installed in the factory.

Below is the table showing the (workers x HP= fee) for factory license registration in AP:

• The applicants have to pay a simple interest of 2% per month, or part of the month, which shall be payable on the difference of the fee not paid. In case the application is rejected, applicants will get a refund within thirty days of the date of the order.
• For transferring a license from one owner to another, there will be personal delivery charges, and the applicable fee for the license transfer will be ₹50/- only.

A factory license is an official legal permit granted by the Chief Inspector/Directorate of Factories, Labour Dept, Govt of AP (Labour, Employment, Training, Factories & Boilers Department).

According to the Factories Act, 1948, Section 2 (m), a factory is defined as any premises that include the following criteria:

A factory license is an official legal permit granted by the Chief Inspector/Directorate of Factories, Labour Dept, Govt of AP (Labour, Employment, Training, Factories & Boilers Department).

The core difference between them lies in the roles and responsibilities towards a factory or a business. An occupier holds supreme administrative, financial, and policy control. On the other hand, a factory manager is an employed professional hired by an occupier to supervise factory operations.

Go through the table given below to have a better understanding of the concept:

In Andhra Pradesh, a factory license is a legal requirement under the Factories Act, 1948, for establishments engaged in manufacturing processes and certain other specified activities. Obtaining a factory license offers several benefits to both the government and the business owner:

• Legal Compliance:Obtaining a Factory License ensures that the business complies with the legal requirements outlined in the Factories Act. This helps in avoiding legal issues and penalties for non-compliance.
• Safety and Health Standards:The Factories Act mandates certain safety and health standards for factories. Obtaining a Factory License ensures that the business adheres to these standards, providing a safe and healthy working environment for employees.
• Regulatory Oversight:The issuance of a Factory License involves inspection and approval from the Factory Inspectorate. This regulatory oversight helps in maintaining and improving workplace conditions.
• Employee Welfare:The Factories Act includes provisions related to working hours, leave policies, and welfare amenities for workers. By obtaining a Factory License, a business demonstrates its commitment to the welfare of its employees.
• Insurance Coverage: Some insurance companies may require a valid Factory License as a prerequisite for providing insurance coverage to the factory. This can be crucial in mitigating financial risks associated with accidents or other unforeseen events.
• Government Monitoring:A Factory License facilitates government monitoring of industrial activities. This is essential for planning and implementing policies related to industrial development, labor welfare, and environmental protection.
• Access to Government Incentives:In some cases, having a valid Factory License may make the business eligible for government incentives, subsidies, or support programs aimed at promoting industrial growth and compliance with regulations.
• Credibility:Possessing a Factory License enhances the credibility of the business. It signals to customers, suppliers, and other stakeholders that the business operates within the legal framework and is committed to maintaining high standards.
• Environmental Compliance: Factories are often required to adhere to environmental norms. The Factory License process may include checks to ensure that the industrial activities do not adversely impact the environment, promoting sustainable and responsible business practices.
• Facilitates Expansion:When a business plans to expand its manufacturing operations in Visakhapatnam, Vijayawada, Guntur, Tirupati, Kakinada, Nellore, Anantapur, Chittoor, and Ongole, having a valid Factory License is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.

It's important for businesses to be aware of the specific requirements and conditions associated with Factory Licenses in Andhra Pradesh, as there are variations in regulations in different states.

Factory license registration criteria are classified under the following categories.

• Factories with 10 or more workers, works with power.
• Factories with 20 or more workers that do not have access to power.

The processing time to get a factory license in Andhra Pradesh usually takes around 7-14 days. From approving the plan to filling out an application, to the issuance, the process goes beyond days to a week. Below are the processing times to obtain a factory license:

• For approving a plan, the processing time is 7 days from the date of submission of an application.
• After submitting a registration form, a factory license will be issued within 7 days from the date of application.

Understand the timeline to receive a factory license with each stage with the help of a concise table:

In Andhra Pradesh, a factory license is valid for life, until an applicant or occupier cancels it. But the factory owners need to file annual returns and pay an annual fee at the end of each calendar year.

In Andhra Pradesh, the factory license remains valid for life until cancelled by the occupier or authorities. However, it is mandatory to submit annual returns and an annual license fee before the start of each calendar year.

The renewal at regular intervals ensures legal compliance and uninterrupted compliance.

• Step 1: Log in: Access the AP Single Desk Portal and log in to an account.
• Step 2: Navigate to the Portal: Select the option for annual returns and license fee, which will redirect or sync to the MeeSeva Portal.
• Step 3: Fill out the form: Complete the return field by filling in the updated information, such as worker count, HP (Horse Power) details, and operation data.
• Step 4: Upload Documents: Attach proofs of an occupier, Aadhaar Card, PAN Card, and scanned Form No. 2.
• Step 5: Initiate Payment: Pay the auto-calculated annual license fee through the secure online payment gateway.
• Step 6: Get a Confirmation: After reviewing an application, the applicants will get a confirmation email from the authorities.

• Step 1: Log in: Access the AP Single Desk Portal and log in to an account.
• Step 2: Navigate to the Portal: Select the option for annual returns and license fee, which will redirect or sync to the MeeSeva Portal.
• Step 3: Fill out the form: Complete the return field by filling in the updated information, such as worker count, HP (Horse Power) details, and operation data.
• Step 4: Upload Documents: Attach proofs of an occupier, Aadhaar Card, PAN Card, and scanned Form No. 2.
• Step 5: Initiate Payment: Pay the auto-calculated annual license fee through the secure online payment gateway.
• Step 6: Get a Confirmation: After reviewing an application, the applicants will get a confirmation email from the authorities.

Note: For complete information on Factory License Renewal in Andhra Pradesh, read more.

Running a manufacturing unit without a valid factory license may cause a legal risk for an occupier. Anyone who breaches the act set by the Factories Act of 1948 is subject to a penalty.

As per the Factories Act, 1948, Section 92 defines the general penalties for offences:

Occupiers and Managers held a responsibility and equal liability for breaching the law. Operating without a valid factory license may impose a two-year term of imprisonment or a fine which may extend to ₹1,00,000 or with both.

As per AP Factories Rules (G.O.Ms.No.83, 2007), continuing to commit the same offence repeatedly, a fine of ₹1,000 will be charged daily. Whereas, contravention of Chapter IV, about Safety & Dangerous Operations, may lead to payment of not less than ₹25,000/- in case of death and 5,000 in case of physical injury.