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Factory License Registration in Karnataka - Process, Fees & Documents

In Karnataka, factory licensing and related approvals are administered by the Department of Factories, Boilers, Industrial Safety and Health (DFBISH), Government of Karnataka. The department is responsible for implementing the Factories Act, 1948 and the Karnataka Factories Rules, 1969, including factory plan approval, registration, licensing and related safety requirements.

Factories License registration in Karnataka ensures the health, safety, and welfare of workers under the Factories Act, 1948. It is not only a legal protection, but also prevents manufacturing entities from monetary fines and imprisonment.

If an entrepreneur is looking to start a manufacturing entity anywhere in Karnataka, such as Bengaluru, Mysuru (Mysore), Hubli-Dharwad, Mangalore, Belgaum (Belagavi), Davangere, Gulbarga (Kalaburagi), Shimoga (Shivamogga), Tumkur (Tumkuru), and Kolar, they can reach out to Professional Utilities.

We help businesses to obtain a factory license and an easy navigational setup to follow the stipulated rules and safety guidelines. Our team of legal experts will assist in every step of licensing and registration for a hassle-free experience.

Factory License Certificate [Sample]

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What is Factory License Registration In Karnataka?

Factory License Registration Introduction

A Factory Registration Certificate is a license given to factories operating in Karnataka. The purpose of factory registration is to regulate the working conditions and safety of the workers in the factories. Factory Registration is a very important authorization granted by local authorities depending upon the eligibility.

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How to apply for a factory license online in Karnataka?

To apply for a factory license in Karnataka online, register on the Department of Factories, Boilers, Industrial Safety & Health Portal, get a factory plan approval, fill Form 2, upload necessary documents, make a payment, and get a license easily. Here is the step-by-step process for a factory license registration in Karnataka:

  • Step 1: Apply for a Building Plan - Draft building structural drawings, a site plan, layout, and a clear land title with the help of a professional architect to comply with the local municipal rules.
  • Step 2: Get Clearances - Get Non-Objection Certificates or clearances from key authorities such as the Karnataka State Pollution Control Board (KSPCB), Fire NOC , and local governing authorities.
  • Step 3: Submit Form No 1 - Fill the application form (Form 1) and get it signed by the occupier or manager and submit for a building plan approval. The competent authority/officer of DFBISH will verify the documents and items and approve construction or extension. .
  • Step 4: Register in the Portal - Navigate to the FBIS portal or Seva Sindhu and register as a new user with mobile credentials.
  • Step 5: Fill Form 2 - Provide the necessary details about the factory, general manufacturing details, and workers statistics.
  • Step 6: Upload Scanned Copies - Attach all the required documents in the prescribed PDF format only, and the size should not exceed 2 MB.
  • Step 7: Complete Payment - Applicants can pay government fees through Khajane-2, Karnataka’s official online payment gateway. Generate the challan on Khajane-2 and upload it as valid proof of payment during the application.
  • Step 8: Submit License Form - After initiating the payment online, submit the application form for further inspection and investigation. The Competent authority/officer of DFBISH will examine the factory and installed machinery.
  • Step 9: Track Application- Navigate to the FBIS portal and check the application status. The applicants will get a unique case number. They can use this unique number to access the application status further.
  • Step 10: Access E-Factory License- Download the certificate by checking the status from the FBIS portal and start commencing operations.
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Documents Required for Factory License in Karnataka

To get a factory license in Karnataka, occupiers must submit the necessary documents for building plan approval and then for the registration process later. They are broadly grouped into approval-related plans and ownership or registration proofs:

01

For Building Plan Approval

  • Factory Layout/Plan
  • Manufacturing Process Details & Flow Chart
  • Prescribed Questionnaire
  • Stability Certificate (for Existing Building)
  • KSPCB Clearance
  • Fire NOC
  • Consent for Establishment (CFE) / Consent to Operate (CTO)
  • PESO (Petroleum and Explosive Safety Organisation) approval (For factories handling Static & Mobile Pressure Vessels)
02

For Factory Registration

  • DIC Registration
  • GST Registration Certificate
  • VAT Registration
  • AoA/MoA or partnership deed
  • List of partners, directors along with their address proof
  • Land sale deed or lease deed or rental deed
  • Possession Certificate
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Factory License Registration Fees in Karnataka

The registration fees in Karnataka for a factory license depend totally on the maximum number of workers employed and the total horsepower installed (HP) or kilowatt (KW) installed. These fees are prescribed under the Karnataka Factories Rules.

As per Rule 5 (1) of the Karnataka Factories Rules, the fee dynamics are shown below:

Quantity of H.P Installed Maximum 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 750 From 751 to 1000 From 1001 to 5000 From 5001 to 10000 From 10001 and above
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Nil 540 1080 3240 3480 8100 11880 15600 19440 23280 24300
Upto 10 HP 1080 2160 3360 7560 14580 21600 28320 32400 40500 50220
Above 10 HP Upto 50 HP 2160 3120 4320 8640 15960 23040 30000 34020 43740 51840
Above 50 HP Upto 100 HP 3120 4320 5640 9960 16080 24840 32400 36180 46440 55080
Above 100 HP Upto 250 HP 4860 5400 6420 11340 18900 27000 36120 38400 48840 57780
Above 250 HP Upto 500 HP 5400 6480 8100 13380 22140 30960 39720 44820 56700 66960
Above 500 HP Upto 1000 HP 8640 9960 11880 18360 29160 40500 50760 57240 61020 84780
Above 1000 HP Upto 5000 HP 10800 12960 16200 25440 41040 56700 71505 79800 102600 121200
Above 5000 HP Upto 10000 HP 21600 25920 32400 50880 82080 113400 142995 159600 205200 242400
Above 10000 HP 36600 43200 48600 76320 123120 170100 214500 239400 307800 363600

Note: To understand the government fees prescribed under Rule 5(1) of the Karnataka Factories Rules, click here.

The professional fees for a factory license registration at Professional Utilities start at ₹35,399/- only. However, occupiers have to pay a government fee separately, which depends entirely on their factory size, scale, validity time, and total number of employees.

The professional fees are inclusive of GST, which is 18% of the professional fees.

Professional Fees GST (18%) Total
₹29,999 ₹5,399 ₹35,399
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Benefits of Factory License Registration

A factory license in karnataka helps businesses to operate legally by ensuring safe, comlianr and organised industrial operations. Read the points below to know the benefits of factory license in Karnataka:

  • It regulates employees safety by promoting proper health, safety and welfare measures for workers.
  • Builds a trust among stakeholders, employees, customers, suppliers, and business partners.
  • Protects occupiers from legal penalties, complications and disruptions for smooth business operations.
  • Support businesses for establishment and expansion of manufacturing operations in prominent industrial areas across Karnataka, including Bengaluru, Peenya, Bommasandra, Bidadi and Jigani.
  • Provides a structured framework for maintaining workplace safety, working conditions and statutory records.
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Eligibility Criteria for a Factory License in Karnataka

A factory license in Karnataka is necessary for all manufacturing entities that are engaged in some production activities. As per the Factories Act of 1948, any factory or its precincts are defined as a factory and need to apply for a license:

  • Factories employing 10 or more workers which are involved in manufacturing activities with the aid of power.
  • Factories employing 20 or more workers and involved in manufacturing activities without the aid of power.
  • A unit using contract labour that meets the 10/20 threshold must register a factory license.

Here is a table showing the licensing authority for issuing factory license in Karnataka:

Category Issuing Authority
Building Plan Approval Joint/Deputy Director of Factories
Factory License Registration Joint/Deputy Director
Factory License Renewal Divisional Office
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Factory license validity and renewal process in Karnataka

Under the Karnataka Factories Rules, 1969, the time for obtaining a factory license is based on the building approval and registration process.

Specification Timeline
Processing Time It approximately takes 60 working days
Validity The permission and plan approval will be valid for life. Whereas, the factory license will be valid for one year.
Renewal Timeline Submit the renewal form 2 months before the date on which the license expires
If the renewal application is submitted after the due date, an additional fee of 25% over the ordinary licence fee is payable under sub-rule (2).

Occupiers can renew a factory license for three years at once in Karnataka by paying the license fee for three years in advance.

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Licensing Authority for Factory License Registration in Karnataka

Here is a table showing the licensing authority for issuing a factory license and related approvals in Karnataka:

Service Competent Authority/Department
Factory Plan Approval Department of Factories, Boilers, Industrial Safety and Health (DFBISH)
Factory License Registration  Department of Factories, Boilers, Industrial Safety and Health (DFBISH) through the competent factory inspectorate/authorized officer 
Factory License Renewal  Department of Factories, Boilers, Industrial Safety and Health (DFBISH) through the concerned divisional office
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Penalty for Running a Factory Without a License in Karnataka

Operating a factory without a valid license can result in a breach of the Factories Act of 1948. This can result in severe legal challenges for employers and managers. Under Section 92, the closure of a manufacturing unit and prosecution of the occupiers can create challenges for a business.

  • A fine of up to ₹1,00,000 and imprisonment up to 2 years for a first offence under Section 92.
  • For repeated offences under Section 94, the fine may extend up to ₹2,00,000.
  • Risk of mandatory physical closure of premises and discontinuation of electricity and water supply.
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Compliances to Follow After Factory License Registration in Karnataka

After obtaining a factory license in Karnataka, factories must continue to follow statutory requirements under the Factories Act, 1948 and the Karnataka Factories Rules, 1969. Follow the steps below to avoid legal penlaities and cancelations of factory license:

  • Submit the prescribed Form 20 for annual return within in the applicable timeline.
  • File periodic returns such as the Karnataka Factories Rules Half Yearly Return (Form 21) to the local inspector.
  • Maintain important details and registers updated including Form 9 (Over time registers), Form 14 and Form 15 (Leave Records), and Form 16 (Health Registers).
  • Maintain prescribed safety measures, welfare facilities, working conditions and health provisions for employees.
  • Conduct periodic inspections and testing by ensuring proper machinery installation, pressure vessels and other safety equipment are examined and tested by competent person at regular interval.
Factory License Registration Compliance
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Factory License Registration Consultants in Karnataka - Professional Utilities

Factory license in Karnataka acts as a legal permit to manufacturing units to start operations anywhere in conforming areas of Karnataka. Carrying an expired license or operating a factory without a license can cause a complex situation for occupiers and managers.

Therefore, it is pivotal to apply for a factory license as soon as possible. Professional Utilities provides an outstanding service to their clients. We handle paperwork, portal registration, and the complete inspection process. The professional fee for license registration starts at ₹35,399/- inclusive of 18% GST. For more details and a personalised assistant, contact us.

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FAQ’s On Factory License Registration in Karnataka

How to register a factory license in Karnataka?

To register for a factory license in Karnataka, visit the official portal of FBIS and fill Form 2, including all the factory details, number of workers, occupier’s personal details, pay the required registration fee, and wait for inspection and approval from the competent authority/officer of DFBISH.

How to check factory license status online in Karnataka?

To check the factory license status online in Karnataka, go to the official portal of FBIS and select “Application Status” directly from the portal.

How to get a factory licence in Karnataka?

Applicants can get a factory license in Karnataka by getting a building plan approval, filling Form No. 1, registering on a portal, filling Form 2, providing important documents, initiating a payment, and waiting for the inspection and approval from the competent authority/officer of DFBISH.

What is the factory rule in Karnataka?

The factory rules in Karnataka are governed by the Karnataka Factories Rules, under the Factories Act of 1948. It regulates workers’ safety, health, and working conditions.

What are the requirements for a factory license to be valid in Karnataka?

The requirements for a factory license in Karnataka includes a factory premises, worker safety, health, welfare, machinery and stautory compliance. The required documents and approvals must be maintained as prescribed by the concerned authorities.

Can I renew my factory license online in Karnataka?

Yes.occupiers can renew factory license in Karnataka online through FBIS Login Portal by providing a copy of previous license and paying a renewal fees.

Who grants a factory license in Karnataka?

A factory license in Karnataka is granted by the Department of Factories, Boilers, Industrial Safety & Health, Government of Karnataka through the Director, Joint Director of Factories.

What happens if a factory operates without a license in Karnataka?

If occupiers operate a factory without a valid license in Karnataka, it will result in legal actions, penalties and compliance issues. Businesses should obtain and maintain the necessary factory license and renew it before deadline to continue operations legally.

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Factory License Registration in Andhra Pradesh

Understand the process for a factory license registration in Andhra Pradesh, including its eligibility criteria, required documents, total fees, and necessary compliance requirements to obtain a factory 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 Kerala

Read the complete process for factory license registration in Kerala, worker threshold, registration fees, and penalties for not operating a factory without a license.

Factory License Registration in Tamil Nadu

Check factory license registration process in Tamil Nadu online, its eligibility criteria, list of important documents, applicable fees and key compliances to follow after registration.

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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