Factory License Registration in Chandigarh
Factory License Registration
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What’s Included?
Detailed Eligibility Assessment Accurate Documentation Guidance Compliance Review Ensure Regulatory Accuracy and Approval Assistance to Minimize Delays and Rejections Liaison with Factory Inspector & Department Factory License Application Management Factory Site Plan and Layout Guidance Advisory on Safety, Health, and Welfare Renewal and Amendments guidance
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Factory License Registration in Chandigarh - Process, Cost & Renewal
Factory license registration is a mandatory certification that is required for all manufacturing units in Chandigarh. It is governed under the Factories Act of 1948 to regulate safety, health, and working hours of employees.
Factory licences in Chandigarh are issued by the Chief Inspector of Factories under the Labour Department, Chandigarh Administration, which ensures that businesses comply with the rules and regulations stated under the Factories Act of 1948.
The authorities can shut down the premises, demand a hefty charge, and can cause reputational damage to the business. Therefore, complete the registration process and start commencing operations anywhere in the industrial areas of Chandigarh, including Daria Village, Industrial Area Phase 2, IT Park Chandigarh, and Industrial Area Phase 1.
Factory License Certificate [Sample]
How to Apply for Factory License Online in Chandigarh?
To apply for a factory license in Chandigarh, applicants must get a plan approval, fill out Form 2, submit required documents, and pay a registration fee as specified. Here are the steps to apply for a factory license registration in Chandigarh:
- Get Building Approval : Hire an architect to get site and building plans and wait for approval from the Chief Inspector of Factories. Apply for NOCs (Non-Objection Clearances) from the State and Pollution Control Board, and the Fire Department and local municipal authorities.
- Visit Portal : Access the official website of the CHD Labour Department and scroll down to navigate to the Online Services under The Factories Act,1948.
- Register : Register as a new employer and click on the option "Click Here for Registration," and the page will be redirected to a different page. Enter all the personal details such as full name, email ID, mobile number, password, and provide the captcha shown on the screen.
- OTP Verification : The user will get an OTP on their registered mobile number or through an email ID. Check the details and proceed further.
- Fill Application Form : Submit Form 2 by providing the basic information, including factory address, workers headcount, details of an occupier/manager, manufacturing units, processes, and declaration, etc.
- Document Submission : Upload the scanned copy of the required documents at the time of registration. It should be attached in PDF format only.
- Pay Required Amount : Complete the payment as shown on the screen. The amount is calculated automatically from the maximum installed horsepower (H.P.) and the number of workers employed.
- Track Application : All the relevant details will be sent to the applicants via mobile number or email ID. The users can track the application status online.
- Certification Generation : After successful processing, applicants can select the option ‘Certificate Generation & Download’ to get a factory license.
Documents Required for Factory License Registration in Chandigarh
For a factory license registration in Chandigarh, occupiers must submit the documents including a list of employees, business constitutional documents, and NOCs from specific departments. The primary required list of documents is listed below:
Identity & Business Proof
- Employee Details with EPF & ESI Numbers
- MOA/AOA or Partnership Deed
- Allotment & Lease Documents
- Rent Deed
- Board Resolution
- Stability/Structural Certificate
- Treasury Challan for License Fee Payment
Non-Objection Certificates & Reports
- NOC or Consent Letter from the Pollution Control Board, UT, Chandigarh
- NOC/Consent from Fire Department
- Consent to Establish (CTE) and Consent to Operate (CTO) from the Chandigarh Pollution Control Committee, under the Water Act, 1974 and the Air Act, 1981.
- Safety Reports
- EPF/ESI Certificates
Factory License Registration Cost in Chandigarh
The government-prescribed fee for factory license registration in Chandigarh is determined based on the maximum Horse Power (H.P.) installed and the number of workers employed in the factory.
| Quantity for Horse Power installed (Maximum Horse Power) | Number of persons to be employed on any day during the year | ||||||
|---|---|---|---|---|---|---|---|
| Upto 20 | From 21 to 50 | From 51 to 100 | From 101 to 250 | From 251 to 500 | From 501 to 1,000 | Above 1,000 | |
| Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | |
| Not exceeding 20 | ₹150 | ₹250 | ₹500 | ₹1000 | ₹1500 | ₹2500 | ₹3500 |
| Exceeding 20, but not exceeding 50 | ₹225 | ₹500 | ₹750 | ₹1500 | ₹2500 | ₹3500 | ₹5000 |
| Exceeding 50, but not exceeding 100 | ₹500 | ₹750 | ₹1000 | ₹2500 | ₹3500 | ₹5000 | ₹6000 |
| Exceeding 100, but not exceeding 250 | ₹750 | ₹1000 | ₹2000 | ₹3500 | ₹5000 | ₹6000 | ₹7500 |
| Exceeding 250, but not exceeding 500 | ₹1000 | ₹1500 | ₹2500 | ₹4000 | ₹6000 | ₹7500 | ₹10000 |
| Exceeding 500, but not exceeding 1000 | ₹1500 | ₹2000 | ₹3500 | ₹5000 | ₹7500 | ₹10000 | ₹12500 |
| Exceeding 1000 | ₹2000 | ₹3500 | ₹5000 | ₹7500 | ₹10000 | ₹12500 | ₹15000 |
Source: To understand the fee schedule under the Punjab Factories Rules as applicable to the UT of Chandigarh, Labour Department, Chandigarh Administration, click here.
The table below provides a breakdown of our professional fees and applicable GST, exclusive of government fees.
| Professional Fees | 18% GST on Professional Fees | Total (Exclusive Govt. Fees) |
|---|---|---|
| ₹29,999.00 | ₹5,400 | ₹35,399 |
What is a Factory License and Why is it Important ?
A factory license is a legal permission granted to businesses to start manufacturing units without any legal risk. It is granted by the Chief Inspector of Factories, or an authorized State Factory Inspectorate under the Labour Department of Chandigarh.
According to Section 6 of the Factories Act of 1948, a factory is defined as any premises or its precincts involved in manufacturing activities with 10 or more workers with the aid of power and 20 or more workers without the aid of power.
Chandigarh is a separate union territory and follows the Punjab Factories Rules as applicable to the UT of Chandigarh. The Central Factories Act, 1948 is administered by the Labour Department of the Chandigarh administration.
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Benefits of Factory License Registration in Chandigarh
In Chandigarh, a factory license is a legal requirement under the Factories Act of 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.
- Employee Welfare: The Factories Act of 1948 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.
- 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.
Facilitates Expansion: When a business plans to expand its manufacturing operations in Industrial Area Phase 1, Phase 2, Phase 3, Manimajra Motor Market, a factory license streamlines the process for further approvals and permits for expansion.
How to Renew a Factory License in Chandigarh Online?
Occupiers can renew a factory license in Chandigarh online by following the steps given below:
- Step 1: Register on the Portal: Navigate to the e-services Chandigarh Portal and create a new user account using a mobile number.
- Step 2: Fill Form 2: Submit the renewal application by filling Form 2. Provide a factory name, address, worker count, and horsepower details.
- Step 3: Upload Documents: Attach a copy of the previous factory license certificate in the prescribed format. The image should be in PDF format.
- Step 4: Pay Renewal Fee: Initiate the requisite renewal fee online based on the factory size and duration.
- Step 5: Factory License Approval: The department inspects and reviews the application; after that, the applicants can download the renewed certificate.
Who Needs to Apply for Factory License in Chandigarh ?
In Chandigarh, any factory engaged in manufacturing processes that employs employees and consumes power can apply for a factory license registration.
The eligibility criteria for a factory license registration are as follows:
- Factories employing 10 or more workers involved in manufacturing activities with the aid of power.
- Factories employing 20 or more workers involved in processing manufacturing units without the aid of power.
- As per Schedule 1 of the Factories Act, 1948, factories engaged in hazardous processes regardless of the number of workers employed also require a factory license.
Processing Time, Validity & Renewal for Factory License in Chandigarh
The following table outlines the processing time, validity period, and renewal requirements for a factory license in Chandigarh.
Duration: 7-30 working days
Details: The factory license should be approved and processed within 7 to 30 days
Duration: One year
Details: It can be extended up to 5 years
Fill out Form 2, and the renewal applications are typically processed within 21 working days.
What Happens If a Factory Operates Without a License?
Under the Factories Act, 1948, operating a manufacturing unit without a valid license will be considered a violation of the law and may cause serious legal and financial risk to businesses.
To become eligible for commencing operations, it is required for businesses to adhere to basic rules. A valid license ensures that businesses are following the standards for health and safety in the manufacturing industry.
As per the Factories Act of 1948, if businesses are under any circumstances which is mentioned below, the authorities will consider it a breach of law.
- Running a manufacturing unit without a license
- Engaged in manufacturing processes with an expired license.
- Increased production volume without proper approval.
- Avoiding to renew a factory license
- Failed to keep statutory records during inspection and verification
For this, both the manager and occupier must feel guilty of the offence and be punishable under certain rules and regulations. In several cases, the Chandigarh Labour Department or Chief Inspector of Factories can stop all production units and order instant closure.
Read the table below to understand in detail:
| Offence | Punishment |
|---|---|
| Operating without a license (Section 92) | Imprisonment for a term which may extend up to 2 years and a fine up to one lakh rupees. |
| Repeated offences (Under Section 94) | Imprisonment up to two years and an additional fine of ₹1000 daily. |
| Hazardous activities (death, severe body injury (Section 96A) | Imprisonment up to 7 years and fines specified by the court. |
| Obstruction of Inspector | Imprisonment up to 6 months and a fine of ₹1000 or both. |
A Table Comparison: Factory License Vs Trade License
Here is a table representing the difference between a factory license and trade license:
| Category | Factory License | Trade License |
|---|---|---|
| Goal & Purpose | Regulates workers' safety, health standards, and labour conditions | Grants legal permission to conduct general business, trading, or service operation in a specific area. |
| Governing Law | Under the Factories Act of 1948. | Governed by the Local Municipal Corporation and City Authority Regulations. |
| Issuing Authority | State Labour Department, Chief Inspector of Factories. | Issued by local municipal bodies like Municipal Corporations or Local Development Authorities. |
| Applicability | Applicable for heavy manufacturing units including 10 or more workers with the aid of power and 20 or more workers without the aid of power. | Retail shops, Cafes, Commercial Offices, and Service Providers |
Factory license and trade license both differs primary on their goals, governing law, issuing authority, and applicability. A factory license is mandatory for manufacturing and production units under the labour laws. Whereas the trade license grants legal permission for general commercial and trading activities under municipal law.
Compliances to Follow After Factory License Registration in Chandigarh
After obtaining a factory license in Chandigarh, it is compulsory to follow a set of rules and regulations enforced under the Chandigarh Factories Rules of 2025. Here are the rules that must be followed by the occupier:
- Submit Form 21 for annual return filing by providing the employment, accident, welfare amenities, and working hours details.
- File half-yearly Form 20 if required by the Chief Inspector concerning the workforce numbers and operational data.
- Renew the factory license Form 3 before it expires (annually or as granted on multi-year validity).
- In case of change in management or ownership (occupier/manager), report by submitting Form 7. Record employees' daily attendance, earned, pending leaves, and payment for leave periods.
- Inform about workplace injuries or safety incidents by filing Form 26.
Obtain a Factory License in Chandigarh with Professional Utilities
Getting a factory license is an obligatory requirement to run a manufacturing unit without any inconvenience and legal risks. It ensures the workplace is following health and safety measures. Businesses become eligible for government programs and get incentives and bonuses for scaling their business operations.
This process involves building site approval, registration, documentation, verification, inspection, and issuance. Professional Utilities assist in obtaining a factory license in Chandigarh smoothly and effortlessly. From hiring an architect to registration and issuance, we help businesses at each step from the beginning.
We help in providing the license in different states of India, including Delhi, Gujarat, Maharashtra, Haryana, etc. Seeking a professional partner to get a factory license? Contact Professional Utilities and get a quote today.
FAQ’s On Factory License Registration in Chandigarh
Is a factory license applicable in Chandigarh?
Yes, a factory license is applicable in Chandigarh to any unit employing 10 or more workers with the aid of power or 20 or more workers without the aid of power, and to any unit carrying on a hazardous process listed in Schedule 1 regardless of worker count.
Is a factory license applicable in Chandigarh?
Yes, a factory license is applicable in Chandigarh for all manufacturing units that are involved in producing, assembling, and packaging goods. In Chandigarh, any factory with 10 or more workers who are involved in the manufacturing process with the aid of power and any factory that is not involved in manufacturing activity without the aid of power are eligible for a factory license.
How to apply for a license in Chandigarh?
To apply for a factory license in Chandigarh, occupiers must get a building plan approval, fill a common application form (Form 2), submit necessary documents, and pay a registration fee.
Which department issues a factory license in Chandigarh?
In Chandigarh, the factory license is issued by the Labour Department of Chandigarh through the Chief Inspector of Factories or State Factory Inspectorate under the Factories Act of 1948.
What are the required documents for factory license registration in
Chandigarh?
The required documents for a factory license registration in Chandigarh are Form 2, approved building plan, proof of land/building ownership, Partnership deed, Memorandum and Articles of Association (MoA/AoA), clearances from the fire department and Chandigarh Pollution Control Board.
How to renew factory license in Chandigarh?
To renew a factory license in Chandigarh, visit the official Chandigarh Labour Department Services Portal, register to create an account, fill Form 2with updated factory details, worker count, and power information, upload documents, pay a renewal fee, and submit the application using the OTP mobile verification code.
What is the validity for a factory license in Chandigarh?
A factory license in Chandigarh has a 5 year validity period and remains valid up to 31 December of the final renewal by paying a fee equal to five times the annual rate.
How much does factory license registration cost in Chandigarh?
The cost of a factory license in Chandigarh varies dynamically based on the maximum number of workers employed on any day during the year and the total installed Horse Power (HP) or power usage.
What are the key industrial areas of Chandigarh?
The key industrial zones of Chandigarh are divided into Industrial Area Phase I, Industrial Area Phase II, and Industrial Area Phase III.
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Factory License Registration in Other States
Factory License Registration in Delhi
Find the process for a factory license registration in Delhi including its applicability, required documents, total fees, and important requirements to get a factory license.
Factory License Registration in Haryana
Understand the process for a factory license registration in Haryana, including its eligibility criteria, required documents, total fees, and necessary compliance requirements to obtain a factory license.
Factory License Registration in Punjab
Find the complete process for a factory license registration in Punjab, required documents, applicable fees, and key compliance requirements for factory establishment.
Factory License Registration in Himachal Pradesh
Read the full process for factory license registration in Himachal Pradesh, worker threshold, registration fees, and consequences of not operating a factory without a license.
Disclaimer:The information provided on this website is intended for general information purposes only. Although all reasonable efforts are made to ensure that the information provided is correct and reliable, it is not advised to be used as a substitute for professional advice. The information herein is not to be used in place of seeking professional services, counsel, or guidance. We highly advise that you consult a professional before you make any business or legal decisions regarding the information presented on this website. This website and its contents are given "as is", and we do not take any responsibility for any action that is taken based on information given on this website.
- Written by: Richa Thakur
- Fact-checked: Sahil Singh
- Updated on: August 06, 2026
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