Factory License Registration in Telangana - Process, Fees & Documents

Under the Factories Act of 1948 and the Telangana Factories Rules of 1950, the fee for a factory registration is dynamic and variable. It is calculated on the basis of specific workers headcount and the maximum number of installed HP.

It includes the cost of plan approval, registration, and licensing form. Professional Utilities simplifies the fees for factory license registration. The Professional fees start at just ₹35,399.

These fees are categorized into three terms based on their applicability. See the table mentioned below to understand the fee components:

Government Fee for Factory License Registration in Telangana:

The process for a factory license registration to obtain CTE (Consent to Establish) starts with the online form submission from the Telangana Factories Portal. Read the steps below to understand the registration process in detail:

• Open Telangana Portal - Visit the e TS-iPASS / TG-iPASS and the tgfactories.cgg.gov.in and start as an existing user or create a new account.
• Complete Form 2 - Provide the necessary details about the factory, workers' strength, machinery installments, and occupier’s personal details.
• Upload Documents - Attach the scanned copies of required documents in the prescribed format, which should not exceed 2 MB.
• Deposit Fees - Pay the auto-calculated registration fees online as defined by the Department of Factories under the Government of Telangana.
• Verification Navigate to the final declaration section by clicking on "Generate OTP" or verify through Aadhaar/Mobile to send a one-time password to the registered mobile number of the occupier.
• Investigation & Inspection - An inspector will visit the premises and check the health and safety standards along with workers' welfare.
• Issuance of Certificate - Upon successful approval, the applicants can download an e-factory license directly from the official portal of Telangana Factory.

In Telangana, occupiers must apply for a CTE (Consent to Establish), make a construction plan, and get a layout approval from the Corporation Authority. For small residential plots and larger commercial plots, the plan approval varies:

Here is a table representing the requirements below:

• Appoint a Professional Architect - Create a building layout and site map for construction. Show all the safety points and fire exits through a building layout.
• Get NOC - Apply for a Non-Objection Certificate from the Fire, water, and Electricity departments. This will qualify for approval from specific authorities for further processing.
• Fill Online Form - Open the official portal of Build Now Telangana. Register on the portal as a new user and fill out the common application form. Make sure to attach all the required documents for further inspection.
• Wait for Approval - The Directorate of Town & Country Planning (DTCP) will review all the plans, and if all the norms and standards are met with specific rules, the plan gets approved by the authorities.

In Telangana, a factory license is a crucial aspect to legally operate a manufacturing unit that complies with the Factories Act of 1948. It protects workers' health and safety, and qualifies them for government funds and tenders.

• It acts as a government-issued permission for a factory to start a manufacturing entity.
• It ensures workers' safety by managing proper ventilation and clean drinking water facilities, and medical aid.
• Businesses become eligible for financial benefits from the stakeholders and investors.
• Provides a valid license for public sector supply contracts in the market.
• Builds commercial credibility and trust in the eyes of stakeholders and within international markets.
• Protects occupiers from legal court cases and hefty compensation.

Securing a factory license is a necessary step, and occupiers have to follow last-minute tips to avoid common mistakes during the registration and licensing process. Here are the common mistakes along with tips to avoid delays and hurdles:

• Common Mistake: Mismatched submitted layout plan and the physical setup can lead to immediate rejection.
• Tip: Get a structured building layout design pre-approved by an official structured engineers or architect.
• Common Mistake: Submitting outdated or expired NOCs from the Fire Department or the State Pollution Control Board.
• Tip: Acquire environmental/pollution consents and fire safety certificates before licensing and file submission.
• Common Mistake: Incorrect occupiers' details or failing to legally declare the official occupier can create hurdles in the legal verification process.
• Tip: Cross-check scanned digital copies including identity proofs, PAN, Aadhaar Card, and manufacturing process flowcharts before uploading.

In Telangana, 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:

• Factory license in Telangana provides a legal authorization outlined in the Factories Act of 1948. It helps in avoiding legal penalties and non-compliance.
• When occupiers plans to set up manufacturing plant in cities like Hyderabad, Rangareddy, Warangal, Medak and Sangareddy, Khammam, Karimnagar and Nizamabad, a valid factory license permits authorities for approval and expansions.
• TG-iPASS act as a digital gateway by the Telangana Industrial Department and offer fast tracking operational clearances. It is a official pass for claiming the state's equity free industrial subsidies.
• Enhances the credibility in the internal market and global buyers and consumers.

In Telangana, all industries that are engaged in manufacturing activities, including food processing, textiles, packaging, pharma and chemical units, are eligible for a factory license. To obtain a license, businesses must meet the worker thresholds specified under the Factories Act of 1948. Here are the basic requirements listed below:

• Any manufacturing unit employing 10 or more workers with electricity consumption.
• Any manufacturing unit employing 20 or more workers without the consumption of an electricity supply.

Once the application is submitted through the applicant’s end, the processing time, validity, and renewal period may differ. Read the table below to know in detail:

Operating a factory without a license may cause legal consequences for employers. It can lead to a disruption in the manufacturing process for businesses. The authorities may discontinue the supply of necessary resources, including water and power supply.

As per the Factories Act of 1948, the penalty for violating the laws leads to:

• Imprisonment up to 2 years for occupiers/direcor/ managers.
• A monetary fine of up to Rs.1,00,000 may be imposed on the occupier for a first offence of operating a factory without a valid licence.
• For commencing the same activity for the second time, they will be charged up to ₹2,00,000.
• Where the contravention continues after conviction, a further fine of up to Rs.1,000 per day may be imposed for each day the offence continues.

In Telangana, the statutory guidelines, including industrial safety, licensing, and compliance, are governed under Section 6 of the Factories Act of 1948 and the Telangana Factories Rules of 1950.

Under this rule, the Deputy Chief Inspector of Factories monitors and evaluates factory setups, structural approvals, and enforcement measures.

After getting a valid factory license certification from the Directorate of Factories and the Deputy Chief Inspector, Government of Telangana, it is necessary to follow a sets of rules and regulations to avoid penalities and delays. Follow the rules mentioned below:

• File annual returns and report different details including workers counts, working days, and accident records through the Telangana Factories Portal.
• Process an integrated returns by combining labor law returns through the Telangana Labour Departmental Portal.
• Maintain a continous welfare of employees by facilitating drinking water points, washrooms, medical kits and canteen.
• Peridically conduct a regular internal safetty checks, pressure vessels, tests and routine fire extinguisher maintainance.
• Adapt self-certification system through the Telangana Factories Portal to reduce routine isnoection frequencies.