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Factory License Registration in Daman And Diu - Process & Fees

Factory License registration in Daman and Diu is a mandatory process for obtaining approval from the Chief Inspector of Factories under the Department of Factories and Boilers. It is operated by the Jurisdiction of Dadra and Nagar Haveli and Daman and Diu (DNH&DD) Union Territory Administration.

Factory license registration is required before commencing commercial production, which is administered through the Union Territory under the Factories Act, 1948. The Union Territory was formed on 26 January 2020 by merging Daman and Diu with Dadra and Nagar Haveli, operating its Labour Department with offices in both Silvassa (DNH Division) and Nani Daman (Daman and Diu Division).

The main function is to regulate the safety conditions of workers and laborers working in factories. If a business is willing to start a new venture in the manufacturing sector in any part of Dadra and Nagar Haveli or Daman and Diu, it must complete the registration process.

Professional Utilities helps businesses obtain a factory license across Dadra and Nagar Haveli and Daman and Diu, including key industrial regions such as Daman, Silvassa, and Vapi. It simplifies the registration process. Our team of experts will assist through every step from the beginning to the end. We support the documentation process, file submission, inspection, and granting of a license.

Factory License Certificate [Sample]

factory license certificate daman & diu sample

Step-by-Step Process for Factory License Registration in Daman and Diu

After constructing the building, start the registration process online through the EODB Single Window Portal. Here are the steps for registering on the portal:

  • Step 1: Register on the Portal: Navigate to the EODB Single Window Portal at swp.dddgov.in under Labour and Employment, DNH&DD, or visit ddd.gov.in/service/labour-service using PAN and Aadhaar.
  • Step 2: Submit Application: Fill in the prescribed application form by providing factory details, occupier’s information, and workers count, power consumption (HP), and manufacturing process details.
  • Step 3: Attach Documents: Occupiers have to provide proof of factory and personal details. Upload scanned documents in the prescribed PDF format only.
  • Step 4: Initiate Payment: Pay the government fee shown on the screen. This fee is calculated automatically at the time of file submission based on maximum worker count and increased installed horsepower.
  • Step 5: Inspection & Investigation: The Chief Inspector of Factories from the Labour Department will inspect the premises to verify machinery safety, emergency systems, worker welfare facilities, and compliance with the Factories Act provisions.
  • Step 6: Issuance of Factory License: Upon satisfactory, factory license registration process, applicants can get a digital copy of the license by downloading from the EODB Single Window Portal.
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Process for Building Plan Approval in Daman and Diu

To get a building plan approval in Daman and Diu, applicants have to submit the building layout and site map. Read the process to get approval in detail:

  • Step 1: Prepare Documents: Create a building plan according to local building rules by hiring a professional architect.
  • Step 2: Application Filing: Submit all the created building plans and layout plan with all annexures to the local municipal authority or Town & Country Planning Authority in Daman/Silvassa.
  • Step 3: Get No Objection Certificates: Obtain Fire NOC from the Fire Department and Consent to Establish (CTE) from the DNH & DD Pollution Control Committee before commencing construction.
  • Step 3: Fee Payment: Pay development charges and technical scrutiny fees.
  • Step 4: Site Inspection: PDA (Planning and Development Authority) inspects the premises to check whether all the preventive measures are meeting the requirements mentioned in the building plan.
  • Step 5: Plan Approval: The stamped permit will be granted by PDA to start building construction in the conforming area.
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Documents Required for Factory License in Daman and Diu

To get a factory license in Daman and Diu, all documents must be self-attested. Scanned copies should be in PDF format unless the portal specifies. Here is a list of necessary documents required for factory license registration in Daman and Diu:

01

Building Plan Approval

  • Approved factory layout/building plan (machinery placement, emergency exits, fire escape routes, worker welfare areas)
  • Fire NOC from Fire Department; Consent to Establish (CTE) from DNH&DD Pollution Control Committee
  • Land ownership proof or registered lease/rental deed
  • List of machinery and equipment with specifications
02

Registration Process

  • Stability certificate from licensed structural engineer (for multi-storey buildings)
  • Consent to Operate (CTO) from Pollution Control Committee (post-establishment)
  • PAN card of occupier/authorized signatory; Aadhaar card
  • GST Registration Certificate; Certificate of Incorporation (for companies)
  • Board Resolution (for companies) / Partnership Deed (for firms)
  • Employee headcount records and attendance registers
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Factory License Registration Fees in Daman and Diu

Factory license registration fees in Daman and Diu are calculated dynamically based on the maximum number of workers employed in the factory at any one time and the total installed horsepower (HP) of machinery.

If occupiers are willing to hire a legal expert, they can contact Professional Utilities. We charge a service fee of ₹35,399 for complete registration and licensing assistance in Daman and Diu. This fee is exclusive of government fees and applicable GST. Contact us for the current fee applicable as per factory size and category.

Below is a table showing the fee schedule prescribed by the UT Administration under the Daman and Diu Factories Rules, 1985.

Quantity
B.H.P.
Installed on
any one day
of the Year
Maximum Number of Workers to be employed on any during the year.
Upto
20
From
21 to
50
From
51 to
100
From
101 to
250
From
251 to
500
From
501 to
1000
From
1001 to
2000
From
2001 to
5000
Above
5000
1 2 3 4 5 6 7 8 9 10
Fees Payable (in Rupees)
Nil 160
40
320
80
480
120
960
240
2000
500
3200
800
6400
1600
9600
2400
12800
3200
200 400 600 1200 2500 4000 8000 12000 16000
Upto 10
Horse
Power
320
80
480
120
640
160
1280
320
2400
600
4800
1200
9600
2400
12800
3200
16000
4000
400 600 800 1600 3000 6000 12000 16000 20000
Above 10
HP upto 50
HP
480
120
640
160
960
240
2000
500
3200
800
6400
1600
12800
3200
16000
4000
19200
4800
600 800 1200 2500 4000 8000 16000 20000 24000
Above 50
HP upto 100
HP
800
200
960
240
1600
400
2800
700
4800
1200
9600
2400
16000
4000
19200
4800
22400
5600
1000 1200 2000 3500 6000 12000 20000 24000 28000
Above 100
HP upto 250
HP
1280
320
1600
400
2560
640
3200
800
6400
1600
12800
3200
19200
4800
22400
5600
25600
6400
1600 2000 3200 4000 8000 16000 24000 28000 32000
Above 250
HP upto 500
HP
1600
400
2400
600
3200
800
6400
1600
9600
2400
16000
4000
22400
5600
25600
6400
28800
7200
2000 3000 4000 8000 12000 20000 28000 32000 36000
Above 500
HP upto 1000
HP
2000
500
2800
700
6400
1600
9600
2400
12800
3200
19200
4800
25600
6400
28800
7200
32000
8000
2500 3500 8000 12000 16000 24000 32000 36000 40000
Above 1000
HP upto
2000 HP
3200
800
6400
1600
9600
2400
12800
3200
16000
4000
22400
5600
28800
7200
32000
8000
36000
9000
4000 8000 12000 16000 20000 28000 36000 40000 45000
Above 2000
HP upto
5000 HP
6400
1600
9600
2400
12800
3200
16000
4000
22400
5600
28800
7200
32000
8000
36000
9000
41600
10400
8000 12000 16000 20000 28000 36000 40000 45000 52000
Above 5000
HP
12800
3200
14400
3600
16000
4000
20000
5000
24000
6000
32000
8000
36800
9200
40000
10000
47200
11800
16000 18000 20000 25000 30000 40000 46000 50000 59000

Note: Applicants can check the government fees stated under the Daman and Diu Factories Rules, 1985; click here.

Professional fees for a factory license registration in Daman and Diu:

Professional Fees 18% GST on Professional Fees Total (Exclusive Govt. Fees)
₹29,999.00 ₹5,400 ₹35,399
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What is Factory License Registration in Daman and Diu?

Factory License Registration Introduction

In Daman and Diu, a factory license is a legal permit that is mandatory under Section 6 of the Factories Act, 1948. It is issued by the Local Department of Factories and Boilers. They authorize manufacturing operations and verify that premises meet safety, health, and worker welfare standards.

The Labour and Employment Department of the DNH & DD, UT administers factory licensing through two regional offices, including:

  • Silvassa Office (DNH Division)
  • Nani Daman Office (Daman and Diu Division)

The single window portal for all labour and employment services, which includes factory license registration, is also accessible at ddd.gov.in under Labour Services. The UT Administration issues the Draft DNH&DD Occupational Safety, Health and Working Conditions Regulation, 2025, which aligns with the national OSH Code framework. The manufacturers in the UT should ensure compliance with both the existing Factories Act 1948 provisions and any updated rules under this regulation.

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Types of Factory License in Daman and Diu

Here is a table representing the factory license registration in Daman and Diu categorised on the basis of different sectors along with its relevance:

First Schedule Category (Factories Act, 1948) Why it's relevant to DNH&DD
Petrochemical / Chemical Industries (plasticisers, PVC stabilisers, fatty acids) DNH&DD (Silvassa) is one of India's largest plasticiser-manufacturing hubs, feeding the UT's dense plastics-processing base
Drugs and Pharmaceutical Industries DNH&DD hosts a cluster of pharma manufacturing and R&D units, especially around Daman
Chemical Industries (organic intermediates) Supports downstream pharma, dye and agrochemical units
Plastic Additives / PVC Compounding Feeds the plastics-processing sector that DNH&DD is nationally known for
Rubber / Plastic Processing (downstream) DNH&DD contributes 28% of India's plastic production, largely rigid-packaging fillers for FMCG brands

Factories carrying a manufacturing unit, including red, orange, green, and white categories, must get a registration before commencing operations.

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Benefits of Factory License Registration in Daman and Diu

There are several benefits of factory license registration in Daman and Diu, and it helps businesses to operate manufacturing units further. Read the points below to know the benefits in detail:

  • Allows eligible factories to operate in compliance with the applicable factory laws and regulations.
  • Promotes better workplace safety and supports compliance with prescribed requirements for worker health, safety, and working conditions.
  • A valid license helps in avoiding regulatory issues and interruptions related to factory permissions.
  • Provides approval and permission for further expansion, including construction and extension, and manufacturing processes.
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Eligibility for Factory License Registration in Daman and Diu

Daman and Diu is considered home to Daman Industrial Estate and Kadaiya Industrial Area, with significant clusters of pharmaceutical manufacturing, chemical processing, light engineering, and plastic processing units, all of which qualify for factory licensing.

Under the Factories Act of 1948, a factory license registration is a mandatory process in Daman and Diu. The eligibility criteria for the registration process are:

  • Any manufacturing premises employing 10 or more workers with the aid of power.
  • Any manufacturing premises employing 20 or more workers without the aid of power.
  • Premises carrying a manufacturing process as defined under Section 2(m) of the Factories Act, regardless of whether power is consumed, if the worker’s threshold is met.
  • Factories which operate seasonally only during peak-specific months.

Note: Instead of including permanent payroll staff, Labour Inspectors in the DNH & DD UT count contract workers, temporary staff and daily wage employees on any given day.

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Compliances to Follow After Factory License Registration in Daman and Diu

Follow certain rules and regulations after getting a factory license in Daman and Diu; otherwise, an occupier has to face legal issues and penalties. Here are the important rules that must be followed after registration:

  • Maintain workplace safety by keeping machinery in good condition, following safety measures, and maintaining fire-fighting equipment.
  • Provide required facilities such as first-aid, drinking water, canteen, and creche for workers' welfare facilities.
  • Follow working hour rules by regulating prescribed working hours, weekly holidays, and overtime requirements.
  • Arrange medical checkups and examinations for workers who are involved in hazardous processes.
  • Keep mandatory registers, records, and statutory returns updated and submit them to the authorities before the deadline.
Factory License Registration Compliance
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Penalties for Operating a Factory without a License in Daman and Diu

It is mandatory to complete the factory license registration process to start a manufacturing unit in Daman and Diu. If an occupier operates a factory without a license, they have to face legal cases and penalties.

Read the table mentioned below to understand the consequences:

Violation Relevant Section Penalty
General violation of the Factories Act of 1948 Section 92 Imprisonment up to 2 years, fine up to ₹1,00,000 or both. Continued violation may attract an additional daily fine.
Repeat offence after previous conviction Section 94 Enhanced penalty, including imprisonment up to 3 years or fine up to ₹2,00,000 or both.
Obstructing an Inspector or failing to produce required records Section 95 Imprisonment up to 6 months, and fine up to ₹10,000, or both.
Disclosing analysis results Section 96 Imprisonment up to 6 months, and fine up to ₹10,000, or both.
Non-compliance with hazardous-process safety provisions Section 96A Imprisonment up to 7 years and fine up to ₹2,00,000. Continuing violation may attract an additional fine up to ₹5,000 per day.
Violation by workers of duty imposed under the Act Section 97 Fine up to ₹500, as per the provisions of the Act.
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Difference Between Factory License & Trade License

Factory license is a state-level safety permission that is required for manufacturing units under the Factories Act, 1948. Whereas, a trade license gives municipal permission to conduct a commercial activity without harming public health and safety.

Here is a table representing the core difference between them:

Category Factory License Trade License
Primary Goal It ensures that the business is operating in a specific location without harming citizens. Trade license regulates workers' safety, health, hazardous processes, working hours, and welfare measures within the premises.
Issuing Authority Issued by the State Government's Labour Department or Chief Inspectorate of Factories. Granted through the local municipal corporations or civic bodies (city municipal boards)
Applicability Mandatory for units carrying manufacturing processes with 10+ workers with the aid of power and 20+ workers without the aid of power. Requires wide range of commercial operations (retail shops, restaurants, hotels, warehouses, and small shops.

Need a trade license registration in Daman and Diu? Contact Professional Utilities to connect with our team of professionals.

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Difference Between Occupier and Manager under Factory License in Daman & Diu

Here is a table showing the core difference between occupier and manager:

Category Occupier Under Section 2(n) Manager Under Section 7(1)(f)
Definition Person with ultimate control over the factory's affairs Person the occupier notifies as being in charge of day-to-day working
In a Company Any one director (deemed occupier) Any designated executive (e.g., plant/works manager)
In a Firm Any one partner/member (deemed occupier) Any person the firm designates
Key Duties Overall compliance: health, safety, welfare, hazardous-process disclosures (Sec. 7A, 41B, 41C) Day-to-day implementation; point of contact for Inspector
Legal Liability Primary liability for offences (Sec. 92) Liable for lapses within own charge; Sec. 101 lets either prove fault lies with the other
Appointment Basis Deemed by statute (director/partner status) Appointed by occupier; notified within 15 days (initial) / 7 days (change)

For managing any factory, an occupier and manager are crucial aspects stated under the Factories Act of 1948.

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Processing Timeline, Validity & Renewal Period: Factory License in Daman & Diu

A factory license in Daman and Diu has a defined validity period and requires timely renewal. However, the processing timeline may differ based on the plan approval, registration, and inspection process. Here is a table representing the details clearly:

01

Processing Time

  • The official processing time in Daman and Diu is 20 working days from complete application submission to the inspection process.
02

Validity

  • A factory license may be granted for a maximum period of 10 years, which is defined by applicable conditions and prescribed fee.
03

Renewal

  • The factory license can be renewed through the Renewal of License under the Factories Act, 1948, by the service of the UT Administration.
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Secure Factory License in Daman & Diu with the Help of Professional Utilities

A factory license registration in Daman and Diu is an important process for businesses that are willing to operate legally. It ensures that businesses are following safety, health, and workplace requirements. If an occupier is establishing any unit in the conforming areas like Dabhel, Kachigam, Bhimpore, or Kadaiya, then they have to go through the proper registration and licensing process.

Professional Utilities assists in providing a factory license in Daman and Diu without any hassle. Contact us and get expert assistance for a smooth registration process. We help businesses across India, including Goa, Maharashtra, and Gujarat. For more details, feel free to reach out to us.

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Conclusion

The Factory License in the union territory of Daman and Diu is important to all carrying out manufacturing deals. It complies with the Factories Act of 1948, protects workers, and gives proper means through which business activities can flow smoothly. Before commencing production, authorization from the Daman, Silvassa, or Vapi authorities is obligatory irrespective of whether you are forming a unit. Here at Professional Utilities, registration is made easy, being a one-stop service provider in documentation, approval, and other compliance procedures. Expert support makes your experience as smooth as possible so that you can concentrate on business development.

Get Expert Consultation

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FAQ’s On Factory License Registration in Daman and Diu

Who needs a factory license in Daman and Diu?

Any factory that carries out a manufacturing process and meets the worker threshold stated under Section 2(m) of the Factories Act of 1948. The worker thresholds are:

  • Factories employing 10+ workers and carrying out a manufacturing process with the aid of power.
  • Factories employing 20+ workers and carrying out a manufacturing process without the aid of power.
How many workers require a factory license in Daman and Diu?

In Daman and Diu, the Factories Act of 1948 covers premises with 10 or more workers where power is used and 20 or more workers where power is not used for the manufacturing processes.

What is the validity of a factory license in Daman and Diu?

The validity of a factory license in Daman and Diu can be granted for a maximum period of 10 years based on the applicable conditions and fee tier.

How long does factory license registration take in Daman and Diu?

The processing time for a factory license registration in Daman and Diu usually takes 20 working days, as per the Factories Act of 1948.

How can I renew my factory license in Daman and Diu?

Applicants can apply for renewal through the UT Administration’s Single Window Portal. The notified timeline for renewal is 60 working days.

What are the required documents for a factory license registration in Daman and Diu?

The application generally requires prescribed documents for factory license registration in Daman and Diu, includes factory/ site plans, certificate of stability, occupier’s details, and NOC from Fire and Daman and Diu State Pollution Control Board.

Is a factory license mandatory before starting manufacturing operations?

Yes, it is important to get a factory license before starting manufacturing operations to avoid legal penalties and court cases.

Where can I apply for a factory license in Daman and Diu?

Occupiers can apply for a factory license in Daman and Diu through the DNH & DD Single Window Portal, under the Factories and Boilers Department’s factory license registration service.

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Factory License Registration in Gujarat

Discover the factory license registration process in Gujarat, eligibility criteria, necessary documents, online registration process, advantages and the sets of rules and regulations to avoid penalties.

Factory License Registration in Goa

Find the process for a factory license registration in Goa, including applicable fees, required documents and key compliances to follow after obtaining a license.

Factory License Registration in Maharashtra

Find the process for Factory License Registration in Maharashtra, including applicable fees, required documents, approval timelines and key compliances to follow after obtaining the license.

Factory License Registration in Odisha

Check the factory license registration process in Odisha, plus required documents, required fees, benefits, and guidelines to get a factory 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.

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