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Factory License Registration in Rajasthan - Process, Fees & Timeline

Rajasthan is known as a home to India’s second-largest Japanese investment zone (Neemrana), the country’s textile capital (Bhilwara), and the Bhiwadi NCR industrial belt, which is the fastest-growing manufacturing state of India.

Any manufacturing unit operating in Rajasthan must obtain a factory license under the Factories Act, 1948, and comply with the Rajasthan Factories Rules, 1951. A factory license is a legal document granted by the Chief Inspector of Factories under the Department of Factories & Boilers Inspection, through the Government of Rajasthan.

A factory license helps to monitor workplace safety, workers’ welfare, and industrial hygiene.

In Rajasthan, any manufacturing unit, including small-scale to large ones, needs to follow certain rules and regulations stated under the Factories Act of 1948.

Whether it's a textile unit, engineering plant, food processing unit, chemical unit, or carrying packaging facilities, occupiers must comply with the industrial rules and get approval.

Proper licensing strengthens the brand’s reputation, helps in securing bank loans, funds, and monetary aid from stakeholders and investors.

At Professional Utilities, we assist our clients from the beginning to the end. Our team of legal experts handles complete paperwork, licensing, and application submission without any stress.

Factory License Certificate [Sample]

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How to Apply for Factory License Registration in Rajasthan?

As per Section 7, before occupying any premises as a factory, the occupier must send a written legal notice to the Chief Inspector of Factories at least 15 days in advance. The notice should include the factory name, address, occupier name and address, owner of the premises; nature of manufacturing process; installed horsepower; expected manager name; number of workers to be employed.

Here are the steps to obtain a factory license in Rajasthan:

  • Get Plan Approval - Request a building plan approval by submitting the layout, building drawings, and the factory address and details to the Chief Inspector of Factories.
  • Obtain clearances - Secure Fire NOC and Rajasthan Pollution Control Board NOC. Ensure that applicants are applying for Consent to Operate (CTO) & Consent to Establish (CTE) from the Rajasthan State Pollution Control Board.
  • Register on the Portal - Access the official website of the RajFAB Portal, which is managed through the Factories & Boilers Inspection, Labour Department of Rajasthan.
  • Fill Form 2 - Fill the common application form including factory details, occupier’s details along with machinery installations and number of workers.
  • Submit Documents - Upload the scanned copies of documents in the prescribed PDF format. It involves the building drawings, photo ID proofs, and a manufacturing process flow chart.
  • Make Payment - Complete the payment through a convenient method via net banking, Credit or Debit card. These fees are dynamic and may vary based on factory size and scale.
  • Wait for Inspection - After submitting the Form No. 2, the Chief Inspector of Factories will conduct a physical inspection of the location and premises to evaluate the safety and environmental standards under the Factories Act of 1948.
  • Issuance of Factory License - Once the inspectors are satisfied with the evaluation and examination, the applicants will receive a confirmation email/SMS through a registered source.

In case the Chief Inspector of Factories fails to grant or refuse a factory license within the statutory period. The application may be treated as deemed approved under the principle of deemed approval. Applicants can track their application status on the RajFAB portal.

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Documents Required for Factory License in Rajasthan

The following documents are required for building plan approval and factory license registration in Rajasthan.

01

For Building Plan Approval

  • Form 1
  • Latest List of partners/Directors
  • Partnership Deed
  • Memorandum of Articles of Association
  • Sale deed/Rent deed / Lease deed
  • Process Flow Chart of Manufacturing unit
  • Stability Certificate
  • Self-attestation
02

For Registration & Licensing

  • Form 2 duly signed by occupier
  • Load sanction copy & First electricity bill for registration
  • ID proof of Manager/Factory Occupier
  • Photo of Manager/Director
  • Address Proof of Manager/Director
03

For Renewal

  • Latest electricity bill of the factory
  • Application in Form 2 duly signed by occupier;
  • Proof of identity of occupier and factory manager
  • Proof of address of occupier and factory manager
  • Copy of the existing factory license
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Factory License Registration Fees in Rajasthan

Factory license registration in Rajasthan includes both professional and government fees. Government fees vary based on the factory’s size, installed capacity, and number of workers.

Total Installed Generating Capacity In K. W. Fees Payable in Rupees
Generating stations Transforming (including converting) stations
Not exceeding 50 ₹600 ₹300
Not exceeding 100 ₹1100 ₹600
Not exceeding 150 ₹1300 ₹900
Not exceeding 300 ₹1800 ₹1100
Not exceeding 500 ₹2300 ₹1300
Not exceeding 750 ₹3200 ₹1800
Not exceeding 1000 ₹3600 ₹2300
Not exceeding 2500 ₹4600 ₹3400
Not exceeding 5000 ₹6900 ₹4600
Not exceeding 10000 ₹8000 ₹5700
Not exceeding 25000 ₹9200 ₹6900
Not exceeding 50000 ₹13800 ₹9200
Not exceeding 75000 ₹18400 ₹11500
Not exceeding 100000 ₹23000 ₹14800
Not exceeding 150000 ₹27800 ₹18400
Not exceeding 200000 ₹32200 ₹23000
Not exceeding 300000 ₹36800 ₹29900
Over 300000 ₹46000 ₹36800
Professional Fees 18% GST on Professional Fees Total (Exclusive Govt. Fees)
₹29,999 ₹5,399 ₹35, 399

Note: The government fee table uses Kilowatts (KW) as the unit. To convert your factory's installed capacity from Horsepower (HP) to Kilowatts: 1 HP ≈ 0.746 KW. To understand the fee breakdown, click here

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What is a Factory License in Rajasthan?

Factory License Registration Introduction

Under the Central Factories Act, 1948, the Rajasthan Factories Rules, 1951 were enacted under Section 112 of the Act, which governs state-specific requirements in Rajasthan, including inspector qualifications, notice formats, and fee schedules. All factories should comply with the central and state rules.

It is granted by the Chief Inspector of Factories, under the Department of Factories & Boilers Inspection in Rajasthan. Occupiers have to complete proper documentation, registration, and form submission to ensure the health and safety measures of workers.

According to the Factories Act, 1948, an occupier is the person who holds the manufacturing unit and has control over the affairs of the factory. It can be an individual partner (firm), director (company), or government-appointed manager (government-owned factory).

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Benefits of Factory License Registration In Rajasthan

In Rajasthan, 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.
  • Safety and Health Standards: The Factories Act mandates certain safety and health standards for factories. Obtaining a Factory License ensures that the business adheres to these standards, providing a safe and healthy working environment for employees.
  • Regulatory Oversight: The issuance of a Factory License involves inspection and approval from the Factory Inspectorate. This regulatory oversight helps in maintaining and improving workplace conditions.
  • 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.
  • Government Monitoring: A Factory License facilitates government monitoring of industrial activities. This is essential for planning and implementing policies related to industrial development, labor welfare, and environmental protection.
  • 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.
  • Credibility: Possessing a Factory License enhances the credibility of the business. It signals to customers, suppliers, and other stakeholders that the business operates within the legal framework and is committed to maintaining high standards.
  • Environmental Compliance: Factories are often required to adhere to environmental norms. The Factory License process may include checks to ensure that the industrial activities do not adversely impact the environment, promoting sustainable and responsible business practices.
  • Facilitates Expansion: A valid Factory License is essential when a business plans to expand its manufacturing operations in Jaipur, Jodhpur, Kota, Ajmer, Udaipur, Bikaner, and Bhilwara. It streamlines the process of obtaining necessary approvals and permits for expansion

It's important for businesses to be aware of the specific requirements and conditions associated with Factory Licenses in Rajasthan, as there are variations in regulations in different states.

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Objectives of Factory License Registration in Rajasthan

The main objectives of factory license registration in Rajasthan comprise several purposes under the Factories and Boilers Inspection Department to monitor compliance, safety and welfare standards.

  • It ensures workplace safety by properly maintaining machinery structures, following protocols to prevent accidents and occupational hazards.
  • Regulates workers' health and hygiene by enacting ventilation, temperature, cleanliness, and safe disposal of effluents to protect employee health.
  • Facilitates clean drinking water, restrooms, canteens, medical first aid, and creches for workers.
  • Authorizes manufacturing units under official state regulatory oversight before commencing operations.
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Factory License in Key Rajasthan Industrial Zones

Factory license is a mandatory legal authorization required under the Factories Act of 1948 and Rajasthan Factories Rules, 1951. Read the table mentioned below to know the industrial zones along with key industries and features.

Industrial Zone District Key Industries Feature
Bhiwadi Alwar Automotive, chemicals, FMCG manufacturing Rajasthan's largest NCR industrial zone, with a large RIICO industrial area
Neemrana Alwar Automotive components, electronics, manufacturing India's premier Japanese investment zone, home to 100+ Japanese manufacturing companies, making it Asia's second-largest Japanese industrial cluster outside Japan
Bhilwara Bhilwara Synthetic textiles, polyester yarn India's textile capital
Kota Kota Chemicals, fertilizers, engineering manufacturing Major chemicals and engineering manufacturing hub

n Rajasthan, all the manufacturing units that process different activities such as textiles, chemicals, fertilizers, and electronics processing are required to obtain a license.

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Who Needs a Factory License in Rajasthan?

In Rajasthan, any entity who are planning to establish a manufacturing unit or is deciding to construct or extend their business activities, they must register for a factory license. However, as per the Factories Act of 1948, the eligibility criteria are:

  • Factories employing 10 or more workers and engaged in some manufacturing units with the aid of power.
  • Factories employing 20 or more workers and practicing manufacturing activities without the aid of power.
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Factory License in Rajasthan - Timeline, Validity & Renewal

Below is a table representing the processing time, validity, and renewal period of a factory license:

Category Timeline
Total Time Taken Generally, the processing time to obtain a factory license ranges between 30 and 60 days, and for MAH (Major Accident Hazard), the timeline can extend up to 60 working days.
Expiry Date It will expire on 31st December of each calendar year. Apply for renewal at least 2 months in advance by October/November to avoid disruption.
Renewal Period A Factory License can be issued or renewed for a maximum of 5 years
Renewal can be done online through the RajFAB portal using your existing credentials.
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Compliance After Getting a Factory License in Rajasthan

Once a factory license is granted by the Rajasthan Factories and Boilers Inspection Department, a manufacturing unit must maintain statutory, labour, safety, and environmental compliances to avoid hefty fines.

  • Maintain clean workplace conditions, proper ventilation, safe temperature ranges, and lighting.
  • Secure safe closures, manage dust, fumes, and hazardous waste safely.
  • Provide clean drinking water and separate sanitation units for males and females.
  • Conduct periodic testing for pressure vessels, hoists, lifts, and overall building stability.
  • File renewal forms on time to avoid further penalties and legal cases.
  • Keep updated physical copies of overtime records and working hours.
  • Report expansions, changes in horsepower capacity, shifts in directional board members, and worker counts to the Inspector of Factories.
Factory License Registration Compliance
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What is the Significance of Operating a Factory without a License

Operating a factory without a license is considered a violation of the law under the Factories Act of 1948. If an occupier or manager practises the same process, they shall be guilty of it and pay a heavy fine

  • As per Section 92, occupiers have to pay a fine of ₹1,00,000 and imprisonment for 2 years or both.
  • If the first offence continues to be repeated by the occupiers, a hefty fine of ₹2,00,000 will be charged further stated under Section 94.
  • Until the factory license is granted, the occupiers have to pay a compounding fee of ₹1,000.
  • The Chief Inspector may also direct closure of the factory pending compliance under Section 40B of the Factories Act.

Therefore, it is necessary to apply for a factory license registration to avoid legal penalties and court penalties.

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Choose Professional Utilities for Factory License Registration in Rajasthan

A factory license is a regulatory tool that is used for overseeing the working conditions of the factory and employees. The main purpose of this certification is to improve the condition of workers, including proper ventilation, medical facilities, and timely salary distribution.

Business owners may apply for a factory license through the RajFAB portal (rajfab.rajasthan.gov.in) online.. For construction and extension of a building unit, they have to submit a building plan approval and then later register through a business account to get a license.

In case the authorities find businesses without a valid license, further action will be taken for specific businesses dealing with manufacturing processes. Occupiers may face a situation where the administrative task will be shut down until the license is granted.

To avoid these kinds of challenges, it is pivotal to get a license at an affordable fee at Professional Utilities. Our team has processed factory license applications for manufacturing units across Rajasthan’s key industrial zones. The fees start at ₹35,399 /- exclusive of specific government fees. Contact our professionals and register now.

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FAQ’s On Factory License Registration in Rajasthan

How to apply for a factory license in Rajasthan?

Occupiers can apply for a factory license in Rajasthan by requesting a plan approval and then through the Raj Nivesh Portal for registration. They have to submit the necessary documents such as a process flow chart of the manufacturing unit, a stability certificate, and personal details of an occupier.

What is the cost of a factory license in Rajasthan?

The cost of a factory license in Rajasthan basically depends upon the maximum number of installed HP and the employee headcount working in the factory. At Professional Utilities, get a factory license at ₹35,399 /- plus government fee.

Which is the largest industrial city in Rajasthan?

Mahindra World City (Jaipur) is the largest industrial city in Rajasthan. Although Bhiwadi and Kota are also known as industrial hubs in Rajasthan.

Who is responsible for factory license registration in Rajasthan?

In Rajasthan, the Chief Inspector of Factories through the Factories & Boilers Inspection Department under the Government of Rajasthan is responsible for a factory License.

What are BRN and LIN?

BRN stands for Business Registration Number. It is a unique 16-digit identifier granted by a government authority to formally recognize a business entity for legal, financial, and monitoring processes. Whereas LAN is commonly known as Labour Identification Number that is issued by the Ministry of Labour and Employment to handle labor law compliance, reporting, and inspections for business establishments.

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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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