Factory License Registration in Chandigarh
Factory License Registration
Years of Experience
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
Get Expert Consultation
Factory License Registration in Chandigarh
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.
The Chief Inspector of Factories, under the Labour Department, Government of Chandigarh. It ensures that businesses are following rules and regulations stated under the law. If a business is willing to start operations, extend or construct premises, they must apply for a factory license registration in Chandigarh.
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 a 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 : Provide the basic information including factory address, workers headcount, details of an occupier/manager, manufacturing units, processes, and declaration, etc. This is the BIP (Basic Information Performa). Once the user provides the basic details, the system automatically records everything for future logins.
- 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. This amount will be reflected based on the maximum number of installed powerhouses and employee headcount.
- 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 easily download their certificate directly from the portal.
What documents are required for a 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
- List of employees with full details
- (Name, address, EPF, ESI numbers)
- Memorandum of Articles of Association or Partnership Deed
- Allotment Letter
- Lease Agreement
- Rent Deed
- Board Resolution
- Stability/Structural Certificate for the factory building
- Treasury Challan for the Prescribed License Fee Payment
Non-Objection Certificates & Reports
- NOC or Consent Letter from the Pollution Control Board, UT, Chandigarh
- NOC/Consent from Fire Department
- Safety Reports
- EPI/ESI Certificates
How much does factory license registration cost in Chandigarh?
The cost for factory license registration typically ranges from ₹ 150 to ₹ 15,000. The fee is calculated based on the maximum number of installed H.P (Horse Power) and the number of workforce in your factory.
Read the table mentioned below to understand the exact fee criteria for license registration in Chandigarh:
| 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 |
Professional Utilities charges a specific amount to provide a factory license. We offer transparent pricing criteria. Applicants have to provide the charges for the services only along with the government fees. Get a factory license in Chandigarh by paying ₹29,999 along with government fees.
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.
Benefits of Factory License Registration in Chandigarh
in Chandigarh, 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.
- 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.
- 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 Verna, Kundaim, Pilerne, Bicholim, Tivim, Corlim, Mapusa, Bicholim, and Sancoale, having a valid factory license is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.
Who needs to apply for a 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 employees 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.
What is the Process to Renew a factory license in Chandigarh?
The process for renewing a factory license is straightforward, and it might take 21 days for processing the application. Occupiers can renew a factory license by navigating directly to the Labour Department Chandigarh. Read the steps below to understand the complete process in detail:
- Log in : Access the official website of the Labour Department Chandigarh and register for an account. Create a User ID and password.
- Access Renewal Link : Navigate to the previous/processed license section and click on the renewal license option.
- Fill Form : Complete the renewal form and update the factory details, including occupier's name, workforce, installed machines and equipment.
- Upload Documents : Provide the updated documents in the prescribed form. The size limit should not exceed 2 MB.
- Pay Renewal Fees : Submit the applicable renewal fee through credit/debit or net banking. The specific amount is calculated automatically based on the maximum workforce and installed horsepower (HP). For late applications that are submitted after the deadline, they must pay a late renewal fee of 25%.
- Verification : The Labour Inspector of the competent authority will review the submitted application and process it further.
- Issuance : After a successful verification, the applicants can download their certificate instantly from the Labour Department Chandigarh.
What is the validity period of factory license registration in Chandigarh?
The Chandigarh Factory licensing and safety regulations are amended under the Punjab Factories (Chandigarh amendment) Act, 2025. With these amendments, the validity for a license has been extended up to 5 years rather than one year. Keep these terms in mind before renewing the factory license:
- The factory license should be approved and processed within 7 working days.
- Applicants must pay a 25% late fee for renewals submitted after the deadline.
- Fill out Form 2 to renew the factory license online
A Table Comparison: Factory License Vs Trade License
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.
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 Corporation 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 |
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. |
Compliances after Factory License Registration in Chandigarh
The following are the statutory compliances that the factory owner must meet:
- Health benefits
- Safety measures
- Welfare programs
- Working hours for adults
- Annual leave and wages
- Employment of minors
These are all important aspects of employment that should be considered for the health, safety, and well-being of workers.
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 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.
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
Testimonials
"Explore how Professional Utilities have helped businesses reach new heights as their trusted partner."
It was a great experience working withProfessional Utilities. They have provided the smoothly. It shows the amount of confidence they are having in their field of work.
Atish Singh
It was professional and friendly experience quick response and remarkable assistance. I loved PU service for section 8 company registration for our Vidyadhare Foundation.
Ravi Kumar
I needed a material safety data sheet for my product and they got it delivered in just 3 days. I am very happy with their professional and timely service. Trust me you can count on them.
Ananya Sharma
Great & helpful support by everyone. I got response & support whenever I called to your system. Heartly thanx for Great & Super Service. Have a Great & Bright future of team & your company.
Prashant Agawekar
Thank you so much Professional Utilities team for their wonderful help. I really appreciate your efforts in getting start business. Pvt Ltd company registration was smooth yet quick.
Abhishek Kumar
I applied for Drug licence and company registration and their follow-up for work and regular updates helped me a lot. They are happily available for any kind of business consultancy.
Vidushi Saini
Great experience went to get my ITR done, process was quite convenient and fast. Had a few queries, am happy about the fact those people explained me all things I wanted to know.
Taniya Garyali
Great services provided by Professional Utilities. They are best in this industry and the best part is their prices are so affordable. Kudos to you. Now you guys are my full-time consultant.
Aftab Alam
Trusted By
.svg)
