What’s Included?

Detailed Eligibility Assessment Accurate Documentation Guidance Compliance Review Ensure Regulatory Accuracy and Approval Assistance to Minimize Delays and Rejections Liaison with Factory Inspector & Department Factory License Application Management Factory Site Plan and Layout Guidance Advisory on Safety, Health, and Welfare Renewal and Amendments guidance

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Factory License Registration in Tamil Nadu - Process, Fees & Renewal

Under Section 6 of the Factories Act of 1948, obtaining a valid license is compulsory for businesses to begin a manufacturing process in Tamil Nadu. It ensures that the businesses are obeying certain rules and regulations declared by the state government.

As per the law, factories employing 10 or more workers with electricity consumption and factories employing 20 or more workers without electricity consumption are eligible for a factory license in Tamil Nadu.

Cities like Ranipat, Hosur, Pudukottai, Manamadurai, Gummidipoondi, Thoothukudi, Cuddalore, Irungattukotai, and Sriperumbudur are conforming areas in Tamil Nadu. Occupiers who are willing to construct a manufacturing unit or expand in these specific areas must get a building plan approval and then apply for a license.

Professional Utilities assist in providing a factory license conveniently at an affordable price. We understand the business requirements, and therefore, to ease the process, our team of legal experts delivers the service with utmost dedication.

Without a valid license, businesses are prone to legal risk and must pay a hefty amount to cover the damages and violations of the law under the Factories Act, 1948.

Factory License Certificate in Tamil Nadu [Sample]

factory license registration in Tamil Nadu

List of Important Documents for Factory License Registration in Tamil Nadu

Prepare all the pivotal documents beforehand to avoid any hassle at the last moment. Read the list below:

For Building Plan Approval

  • Topo/Site/Detailed Plans (triplicate),
  • Process Flowchart
  • Machinery Installation Details
  • Occupier ID and Address
  • Premises Document,
  • Certificate of Stability

For Factory Registration & License

  • Professional Certificate (Sale & Lease Deed, & Rental Agreement)
  • Fire NOC & TNPCB (Tamil Nadu Pollution Control Board)
  • List of Machinery with Horsepower Details
  • Safety Equipment Reports
  • Proof for Manager Identity & Address (Issued by a Govt. Authority)
  • Copy of MOA/Partnership Deed under Companies Act
  • List of Directors or Partners
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Factory License Registration Cost in Tamil Nadu

The total fees of factory license registration in Tamil Nadu depends on the government licensing fee. It comprises the total installed horsepower and worker count. Apart from this, if an occupier is consulting professional experts, they must submit a required fee set by the institution or service provider.

Here is a table showing the fee structure for a factory license registration in Tamil Nadu:

Total Horse Power installed inclusive of Mobile Equipment Maximum number of Persons to be employed on any day during the year
9 20 50 100 250 500 1000 2000 5000 10000 Above 10000
Fees Payable in Rupees
Nil Horse Power ₹800 ₹1600 ₹2400 ₹3200 ₹7200 ₹10800 ₹24000 ₹36000 ₹66000 ₹96000 ₹120000
Upto 10 Horse Power ₹1600 ₹2400 ₹3200 ₹4800 ₹10800 ₹18000 ₹48000 ₹72000 ₹108000 ₹144000 ₹180000
Above 10 Horse Power and Upto 50 Horse Power ₹2400 ₹3200 ₹4800 ₹7200 ₹18000 ₹28800 ₹72000 ₹108000 ₹144000 ₹180000 ₹216000
Above 50 Horse Power and Upto 129 Horse Power ₹3200 ₹4800 ₹7200 ₹12000 ₹28800 ₹48000 ₹108000 ₹144000 ₹180000 ₹216000 ₹240000
Above 129 Horse Power and Upto 250 Horse Power ₹4800 ₹7200 ₹12000 ₹19200 ₹48000 ₹72000 ₹144000 ₹180000 ₹216000 ₹240000 ₹264000
Above 250 Horse Power and Upto 500 Horse Power ₹7200 ₹12000 ₹16000 ₹25600 ₹72000 ₹96000 ₹180000 ₹216000 ₹240000 ₹264000 ₹288000
Above 500 Horse Power and Upto 1000 Horse Power ₹12000 ₹12800 ₹25600 ₹48000 ₹96000 ₹120000 ₹216000 ₹240000 ₹264000 ₹288000 ₹312000
Above 1000 Horse Power and Upto 2000 Horse Power ₹12800 ₹25600 ₹48000 ₹64000 ₹120000 ₹144000 ₹240000 ₹264000 ₹288000 ₹312000 ₹336000
Above 2000 Horse Power and Upto 5000 Horse Power ₹25600 ₹48000 ₹64000 ₹80000 ₹144000 ₹168000 ₹264000 ₹288000 ₹312000 ₹336000 ₹360000
Above 5000 Horse Power and Upto 7500 Horse Power ₹48000 ₹64000 ₹80000 ₹96000 ₹168000 ₹192000 ₹288000 ₹312000 ₹336000 ₹360000 ₹384000
Above 7500 Horse Power and Upto 10000 Horse Power ₹64000 ₹80000 ₹96000 ₹112000 ₹192000 ₹216000 ₹312000 ₹336000 ₹360000 ₹384000 ₹408000
Above 10000 Horse Power ₹80000 ₹96000 ₹112000 ₹128000 ₹216000 ₹240000 ₹336000 ₹360000 ₹384000 ₹408000 ₹432000
Professional Fees 18% GST on Professional Fees Total (Exclusive Govt. Fees)
₹29,999.00 ₹5,400 ₹35,399
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Steps for Factory License Registration Online in Tamil Nadu

Factory License can be obtained online by navigating direclty at the Director of Industrial Safety & Health. Here are the steps for an online registration:

  • Step 1: Register on the Portal - Visit the official portal of DISH (Directorate of Industrial Safety & Health). Register as an occupier and provide the necessary details.
    • Fill out Form 1 for permission to construct, extend, or alter a factory building.
    • Complete Form 2 for registration and licensing
    Factories in Tamil Nadu contributing to the Tamil Nadu Labour Welfare Fund must provide proof of contribution as part of the Registration and Licensing application.
  • Step 2: Proper Documentation - Upload a copy of the documents in PDF format, and the file size should not exceed 2MB. It should be a scanned copy.
  • Step 3: Pay the Required Amount - Once the applicants submit the necessary documents in the correct order and format, the fee will be automatically calculated and shown on the screen.
  • Step 4: Verification By DISH - The Directorate of Industrial Safety & Health, Government of Tamil Nadu, will send an OTP for the verification process. The applicants may receive an OTP through email or SMS.
  • Step 5: Inspection & License Grant - After submission, the Factory Inspector will examine the location physically and the safety and welfare measures.
  • Step 6: Issuance of License - The Chief Inspector of Factories will grant the license accordingly. Download the e-factory license from the DISH portal.
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Process for a Building Plan Approval in Tamil Nadu

Applicants must request a building plan approval before the registration process. To know the steps, read below:

  • Step 1: Create Building Plans - Appoint a professional architect and prepare a building layout, site map, and get it signed by a Chartered Engineer.
  • Step 2: Get NOCs - Apply for all Non-Objection Certificates from the Tamil Nadu Pollution Control Board (TNPCB) and the Fire Department in accordance with the local authorities.
  • Step 3: Submit to Inspectors - Submit these in triplicate to the Chief Inspector of Factories for approval under Section 6 of the Factories Act, 1948. The Chief Inspector of Factories or automated systems checks the plan for local zoning, health and safety measures.
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What is Factory Registration in Tamil Nadu?

Factory Registration in Tamil Nadu

A factory license in Tamil Nadu is a mandatory legal permission provided to business owners by the Directorate of Industrial Safety & Health (DISH) under the Factories Act of 1948 and the Tamil Nadu Factories Rules, 1950.

This Act was enacted to prevent exploitation of factory workers, including excessive working hours, denial of minimum wages, inadequate safety gear, hazardous equipment, and unsafe working conditions for women and children.

Generally, it ensures that the factories comply with state safety, health, and worker welfare. As per the Factories Act, a factory is defined as any premises, including its precincts, engaged in producing goods and products.

It emphasizes various aspects, including protective facilities, machinery guards, conducting regular safety drills, and maintaining equipment conditions. The DISH evaluates health measures such as clean drinking water, proper ventilation, sanitation, welfare amenities, restrooms, and canteens.

Category Approving Authority
Factories employing 200 or fewer workers, excluding those who are engaged in dangerous operations Deputy Chief Inspector of Factories
Factories employing more than 200 workers and up to 1000 workers, except for those who are engaged in dangerous operations Joint Chief Inspector of Factories
Factories employing more than 1000 workers and all are engaged in dangerous operations Chief Inspector of Factories
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Who Requires a Factory License in Tamil Nadu?

In Tamil Nadu, a factory license is obligatory for all business owners willing to construct, expand, and start manufacturing units in the commercial and industrial areas.

According to the Factories Act, 1948, the eligibility criteria to obtain a factory license are:

  • A company comprising 10 or more employees with the aid of power.
  • A company consisting of 20 or more employees without the aid of power
  • If the premises are notified by the state government and are carrying out hazardous activities regardless of employee headcount.

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Benefits of Factory License Registration in Tamil Nadu

In Tamil Nadu, 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:When a business plans to expand its manufacturing operations in Ranipet, Hosur, Pudukottai, Manamadurai, Gummidipoondi, Thoothukudi, Cuddalore, Irungattukottai, Sriperumbudur, etc., having a valid Factory License is crucial. 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 Tamil Nadu, as there are variations in regulations in different states.

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Eligibility For Obtaining Factory License in Tamil Nadu

Factory license registration criteria are classified under the following categories.

  • Factories with 20 or more workers, works with power ( Hazardous Factories )
  • Factories with 40 or more workers that do not have access to power ( Non-hazardous Factories)
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Validity, Renewal & Processing Time

The processing time, validity, and renewal time are listed below in the table format:

Category Timeline
Processing Time Takes 30 working days from the day of successful application submission and document verification
Validity It is valid for 1, 5, or 10 years depending on the tenure and the paid fees.
Renewal Occupiers must apply for a renewal 30-90 days before the license expiration.
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Compliances After Factory License Registration In Tamil Nadu

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

These are all important aspects of employment that should be considered for the health, safety, and well-being of workers.

Factory License Registration Compliance
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Complete Factory License Registration with Professional Utilities

A factory license is a mandatory certification that is required for commencing operations in Tamil Nadu. It might be a challenging process for owners to navigate with the frequent regulatory amendments, paperwork, and inspection delays.

But with Professional Utilities, the process of obtaining a factory license in Tamil Nadu becomes convenient and smooth for the occupiers. With 10 years of experience in this field, we specialize in the complete process transparently without charging any hidden fees.

For businesses that are willing to construct a building or extend a unit in cities like Ranipet, Hosur, Pudukottai, Manamadurai, Gummidipoondi, Thoothukudi, Cuddalore, Irungattukottai, and Sriperumbudur, get in touch with Professional Utilities. We provide an exceptional service for factory license registration Karnataka, Kerala and across PAN India so that companies continue smooth operation while we take care of compliance and other related processes.

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FAQ’s On Factory License Registration in Tamil Nadu

How to get a factory license in Tamil Nadu?

To apply for a factory license in Tamil Nadu, hire a professional architect and draft a building layout and site plan, and submit to the Chief Inspector of Factories to get approval for construction.

Visit the Directorate of Industrial Safety and Health (DISH) in Tamil Nadu, fill Form 2, upload documents, pay the required fee, and submit the application for further inspection. Once the license is granted, download it directly from the website.

What is the difference between a factory license and industrial license?

The main difference between a factory license and an industrial license is based on their operations and manufacturing processes. The industrial license is granted by the Industries (Development and Regulation) Act, 1951 (IDR Act), while the factory license is governed by the Factories Act of 1948.

An industry license is mandatory for a selected list of industries such as alcohol, hazardous chemicals, and defense. On the other hand, a factory license is vital for any factory employing 10 or more workers with the aid of power and 20 or more workers without the aid of power.

How much is factory license renewal in Tamil Nadu?

The factory license renewal fees vary strictly on the maximum number of horsepower installed and the maximum number of workers employed in the facility. The government fees for renewal start between ₹5,000 and ₹45,000+ per year.

How can I renew my license online in Tamil Nadu?

Occupiers can renew a factory license in Tamil Nadu by navigating to the official website of the Directorate of Industrial Safety and Health (DISH) in Tamil Nadu. Log in to the account, update the changes, upload documents, submit renewal fees, and complete the application form.

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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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