Factory License Registration in Maharashtra - Process , Fees & Documents

Factory license registration in Maharashtra depends upon the maximum number of workers employed and the number of horsepower installed. The exact fees are calculated by matching the employee headcount with the maximum installed horsepower.

The applicable government fee is determined by the number of workers and installed horsepower, as shown in the table below.

Note: To understand the fee component for factory license registration in Maharashtra, click here.

The professional fee for factory license registration in Maharashtra is ₹35,399 (inclusive of GST), as provided in the table below.

Occupiers/ Managers can apply for a factory license in Maharashtra by visiting the official website of the Labour Management System, filling a Common Application Form (CAF), submitting documents, and paying a fee. Here are the steps to register for a license:

• Step 1: Visit Portal - Access the official website of the Maharashtra Labour Management System . Login into the account or create an employer user profile)
• Step 2: Fill CAF (Common Application Form) - Provide the basic personal details, including Full name, address, and nature of activity. Select the service for “Registration & Grant of Service License.”
• Step 3: Form 2 - It should be duly signed by the Chief Inspector of Factories. Occupiers must attach a recent photograph and occupier signature.
• Step 4: Submit Documents - Provide the necessary documents, including personal ID proof, business proof, premises proof, and utility proof.
• Step 5: Pay Fees - Submit the Government registration fees and complete the payment process. Payments can be made through credit/debit or net banking.
• Step 6: Inspection - Once the application is submitted, an inspector from the DISH department will conduct a physical verification.
• Step 7: Issue License - After successful verification from the authorities, applicants can download their factory license from the official portal of Maharashtra Labour Management System.

In case the application is rejected due to incorrect or incomplete information, applicants can submit a fresh application within 30 days after correcting the deficiencies.

Occupiers have to obtain a CTE for constructing or extending any building for commencing manufacturing activities. Here are the steps for a building plan approval:

• Step 1: Appoint a Professional Architect - Hire a professional licensed architect or engineer who must be registered with the local planning authority or council.
• Step 2: Prepare Documents - Gather all the necessary documents and building drawings, including land ownership proofs, site plans, floor plans, and elevations. Get a NOC (No Objection Certificate) from the Fire Department and the Maharashtra Pollution Control Board.
• Step 3: Log in to the Portal - Log in to the MAITRI Portal and fill out Form 1, including occupier/Manager personal details, factory location, manufacturing process, power and equipment details.
• Step 4: Upload Documents - Share the scanned copies in PDF format of the site plan, manufacturing process, and building layout.
• Step 5: Initiate Payment - Pay the required scrutiny and development charges through the online payment gateway.
• Step 6: Technical Evaluation - The Town Planning officials will evaluate the drawings for layout compliance, setbacks, and floor space index (FSI) limits. After a successful evaluation, the building plan approval will be granted to occupiers.

In Maharashtra, when an occupier gets a factory license, it is important to follow rules and regulations to avoid cancellation. Follow the rules after registration:

• Comply regularly with Maharashtra Pollution Control Board (MPCB) consent conditions and renewal timelines.
• Timely renew the factory license before expiration; however, the validity for registration is up to 10 years.
• Record proper tracking of leave with wages for all eligible employees.
• Keep separate, covered and partitioned toilets for male and female workers with proper doors and notices.
• Provide rest for at least half an hour and compulsory weekly holidays.

Factory license registration usually takes around 15-30 days from the date of online file submission and document verification. However, the timeline can extend up to 30-60 days due to delays in the physical inspection and verification process.

For non-hazardous factories, the license is processed generally within 7 working days of the complete application. Whereas hazardous factories may take up to 60 days.

Factories are classified into two broad categories:

• Hazardous Factory: The manufacturing units that involve the use, storage, handling, or processing of flammable, toxic, explosive, and highly reactive or corrosive chemicals as per the Factories Rules and Schedule XII.
• Non-Hazardous Factory: Factories which are not deal with dangerous chemicals and are involved in light manufacturing, assembly, packaging, food processing, and garment units.

In Maharashtra, factory license registration is mandatory under the Factories Act of 1948. According to this Act, any premises that are carrying on a manufacturing unit and following these standards:

• Factories employing 10 or more workers with the aid of power.
• Factories employing 20 or more workers without the aid of power.

A valid factory license is an essential document for manufacturing entities to start commencing business operations; other than that, it offers several benefits such as:

• Provides legal protection to businesses in Maharashtra from government officials shutting down the plant.
• Helps in building a safe workplace and ensuring workers' safety by providing clean drinking water, proper ventilation, and fire safety rules.
• Factory license helps in getting industrial loans, govt. subsidies and MSME benefits.
• Acts as proof for many government projects and supply contracts before registration.
• Helps businesses qualify for stamps like ISO certification and additional licenses. Online registration process saves time and additional paperwork. Applicants can simply apply and track status online through the Directorate of Industrial Safety and Health Portal.
• To allow businesses to expand its manufaturing operations in Mumbai, Pune, Nashik, Aurangabad, Thane, Nagpur, Solapur, Kolhapur, Jalna or Ratnagiri, it is required to have a valid factory license.

Operating a factory without a valid license is considered a breach of law and may result in legal issues and penalties. It is compulsory to follow rules and regulations stated under the Factories Act, 1948 and the Maharashtra Factories Rules 1963.

Violation of rules may result in the following ways:

• Handling a manufacturing unit without a license may result in imprisonment up to 6 months and a fine up to ₹5,00,000
• If an incident occurs due to non-compliance and leads to serious death and injury of a worker, then occupiers have to pay a compensation of ₹5,00,000.
• An additional fine of ₹1,000 daily for continuing offences after a conviction.

Factory licence can be renewed online and handled by the DISH (Directorate of Industrial Safety & Health) through Labour Management System (LMS). Read the steps given below to renew a factory licence in Maharashtra:

• Step 1: Log into the Portal - Visit the official website of Labour Management System, Government of Maharashtra. Log in with the credentials.
• Step 2: Register - Applicants can register as an existing member by creating an employer profile, filling in all the necessary details, and CAF (Common Application Form).
• Step 3: Select Service - Choose the service shown as “License Renewal” from the Directorate of Industrial Safety & Health department and complete Form 1.
• Step 4: Provide Documents - Upload the necessary documents, including recent photographs and the signature of an occupier. Along with this, attach the list of required documents in PDF format.
• Step 5: Pay Renewable Fees - Submit the required amount shown on the screen. This fee is auto-calculated based on the timeline.
• Step 6: Download Factory License - Applicants can download the e-certificate directly from the portal using the same login ID.

All manufacturing units in conforming industrial areas, including DC zones, municipal industrial areas, and notified areas across Mumbai, Pune, Nashik, Nagpur, Aurangabad (Chhatrapati Sambhajinagar), Thane, Solapur, Kolhapur, and Ratnagiri, are required to get prior approval for the building plan and complete registration.

Here are the worker thresholds for factory license registration in Maharashtra:

• Factories employing 10 or more workers with power consumption.
• Factories employing 20 or more workers without the aid of power.

Factory license registration usually takes around 15-30 days from the date of online file submission and document verification. However, the timeline can extend up to 30-60 days due to delays in the physical inspection and verification process.

For non-hazardous factories, the license is processed generally within 7 working days of the complete application. Whereas hazardous factories may take up to 60 days.

The validity period for a factory license in Maharashtra is for one calendar year. However, under the state regulations, the timeline may extend up to ten years. Under the Maharashtra Factories Rules, 1963, the renewal can be made up to five or ten years. The applicants shall renew their license before the last day of January.

Occupiers are required to follow certain rules for license renewal:

• The last date for renewal is on 31st October of each calendar year.
• The late fee starts at 5% each month, which can exceed 25%

Read the table below to know the late fee:

Note: To know the late fee for license renewal under the Maharashtra Factories Rules, 1963, click here.

Understanding the key differences between a Factory License and a Shop Act License helps businesses choose the right registration and stay compliant with applicable regulations.