What is a Factory Licence?

A Factory Licence is a permission from the state government to run a factory or manufacturing unit. It shows that your factory follows the rules for the safety, health and welfare of workers. Without it, you cannot legally start or continue a factory.

The licence is given by the state factory authority (Directorate of Factories, Industrial Safety and Health, or the Chief Inspector of Factories, depending on your state).

Important update: The older law for factories, the Factories Act, 1948, has now been replaced by the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), which came into force on 21 November 2025. Factory registration and licensing now follow this Code and the rules of each state. Existing licences continue during the change, and the process is moving to online registration.

CA Arpit Gupta helps manufacturers understand the current rules, prepare the documents and complete the registration.

Who Needs a Factory Licence?

A business needs a factory licence if it runs a manufacturing process with the number of workers set by law. The limits under the new Code are:

Common examples of units that may come under this licence:

• Textile and garment units
• Food processing and packaging units
• Plastic, rubber and chemical units
• Steel, metal and engineering workshops
• Electrical and electronic assembly units
• Wood, furniture and paper units
• Printing and packaging plants
• Pharma and cosmetic units
• Bottling, ice and cold storage plants with processing work

Why is a Factory Licence Important?

• You can run your unit without the risk of closure
• Worker safety
• Lenders ask for a factory licence for term loans and working capital
• Government schemes and tenders
• Customers and partners see your unit as a proper manufacturing business
• Avoiding penalty

What Documents Are Needed for Factory Licence Registration?

Note: The exact list differs by state and by type of factory. We share the full list after we understand your state and your process.

How Does Factory Licence Registration Work?

1. Call or WhatsApp us on +91-7081220600
2. Tell us your state, product, number of workers and use of power
3. We check if your unit is covered under the Code and which approvals you need
4. You send the documents by email or WhatsApp
5. We prepare the plans, forms and declarations
6. We apply online on the state factory portal or the central labour portal for registration, as the state process requires
7. The fee is paid according to the state rate
8. The officer reviews the application and may inspect the factory
9. We reply to any query or objection
10. The registration and licence are issued with the licence number and validity
11. We guide you on returns, records and renewal

Why Choose CA Arpit Gupta for Factory Licence Registration?

• We guide you as per the new OSH Code and your state process
• We tell you what you need besides the factory licence
• Plans and forms are checked before filing
• Support with inspection and queries
• Linked registrations guidance
• Accounts and compliance support
• We explain each step clearly
• Easy contact

Get Your Factory Licence Today

A factory needs the right papers before the first machine starts. Share your plan with CA Arpit Gupta, and we will guide you from approvals to licence.

Call or WhatsApp CA Arpit Gupta at: +91-7081220600.