Factory License Registration in Gujarat – Eligibility, Fees & Process

Before applying for a factory license in Gujarat, gather all the necessary documents and submit them at the time of the building plan approval process and later at the registration portal. Check a list of documents based on categories below:

The cost of a factory license in Gujarat is totally based on the maximum number of workers on any day and the amount of horsepower installed. At Professional Utilities, we charge a minimal fee that starts from ₹35,399 inclusive of 18% GST plus the government fee. Applicants must pay a government fee based on their factory size, scale, and employee headcount. The professional fee is exclusive of 18% GST. Read the table below to understand our fee criteria:

Note: Exact fees calculated based on maximum HP installed and maximum workers employed in any single day during the year. To know the government fee for factory license registration in Gujarat in detail, click here

Apply for a building plan approval for constructing or extending a building in prominent areas of Gujarat for commencing operations. Read the steps in detail:

• Step 1: Draft Map Hire a professional architect and draft a building layout and site plan that follows the local building codes.
• Step 2: Obtain NOCs Clear all the rules and regulations and get NOCs from GPCB ( Gujarat Pollution Control Board) and a Fire NOC.
• Step 3: Site Inspection The Chief Inspector of Factories will examine the location and nearby areas and then approve the building construction and extension.

Here is the process for factory license registration online through the OFRIS portal:

• Step 1: Register on the Portal Navigate to the Online Factory Registration Information System (OFRIS) available on the Investor Facilitation Portal (IEP) of Gujarat. Click on New User Registration to create a profile.
• Step 2: Fill Common Application Form Fill out Form 2 and provide the necessary details such as occupier’s name, factory details, number of installed machinery, and total number of workers.
• Step 3: Upload Documents Submit the scanned copies of important documents as mentioned above in the prescribed PDF format only.
• Step 4: Pay the Required Fees Initiate a payment through the online gateway and complete it. The fees will be charged on the basis of the maximum number of installed H.P and the total number of workers in a factory.
• Step 5: Wait for an Inspection The Chief Inspector of Factories will conduct a physical inspection of the premises. If the safety measures are followed and are in accordance with the labor codes, they will grant a factory license.
• Step 6: Issuance of Factory License Download the factory license from the portal and keep the license as legal proof to start a manufacturing unit.

Under the Gujarat Factories Rules of 1963, industries and factories must get approval before commencing any business operations. With registration, businesses get numerous benefits such as:

• Grants permission to start a manufacturing unit without facing any sudden closure orders, legal prosecution, or heavy fines.
• Provides defined safety protocols by enforcing structured guidelines for machine safety, ventilation, and cleanliness, which automatically reduces the risk of accidents.
• Integrates systematic arrangements for waste management and pollution control norms.
• Acts as a pre-requisite document for commercial term loans, industrial credit lines, and financial assistance from banks.
• Enhances credibility among brands, buyers, partners, and in the global market.

Factory license registration is important in Gujarat because it helps businesses to get legal authorization under the Factories Act of 1948. With a proper certification, both the employers and the authorities ensure that safety, health, and compliance meet expectations that were set for the welfare of workers and environmental safety.

Let’s understand its importance in detail:

• Protects businesses from legal fines, prosecution, and forced business closure from the Chief Inspector of Factories.
• It links GIDC land possession to financial benefits under the Gujarat MSME incentive schemes.
• Examines the workers' safety, proper lighting, sanitation and medical facilities, and clear drinking water.
• Helps businesses to secure loans from banks, government subsidies, and industrial schemes.
• Creates a sense of credibility, trust in the market, and with global partners.
• Promotes a better environmental space for employees and builds brand recognition.

Under the Factories Act of 1948, the eligibility criteria for a factory license are decided on the basis of workers and power thresholds. Here are the points defining the eligibility criteria for a factory license in Gujarat:

• Any manufacturing entity employing 10 or more workers and engaged in some production of goods and products with the aid of power.
• Any manufacturing entity employing 20 or more workers and involved in producing goods and products without the aid of power.

• Maintain health standards including proper ventilation, lighting, canteens, and clean toilets.
• Keep machinery safe by ensuring that all dangerous and sharp machinery is securely fenced.
• Avoid cleaning or replacing machinery equipment without specialized safety training.
• File for license renewal periodically through the IFP Gujarat Portal before the deadline (at least 2-3 months) to avoid a late fee.
• Submit an amendment application within 30 days for exception cases like changes in factory name, occupier, management, installed horsepower, or maximum worker strength.

In Gujarat, the validity and renewal time vary from other states. Read the table mentioned below to understand it:

Operating a manufacturing entity without a valid license is a breach of the law, as per the Factories Act of 1948. It can result in heavy fines, imprisonment for years, and closure of premises and activities until the license is granted.

Here are the consequences of operating a factory without a license:

• Under Section 92, monetary fines of ₹1,00,000 and imprisonment for 2 years.
• The fine may extend up to ₹2,00,000 for repeating the same offences under Section 94.
• If an offence continues even after a legal notice, ₹1,000 will be charged on a daily basis.

The following are the statutory compliances that the factory owner must meet:

• Health benefits
• Safety measures
• Welfare programs
• Employment of minors
• Working hours for adults
• Annual leave and wages