Factory Setup & License

Complete factory setup and licensing under the Factories Act, 1948 — pre-construction plan approval, factory licence, fire & pollution NOCs, boiler registration and labour compliance.

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Overview

Understanding Factory Setup & License

A factory — any premises where 10 or more workers work with power, or 20 or more without power, in a manufacturing process — must be registered and licensed under the Factories Act, 1948, administered by the State Chief Inspector of Factories (Directorate of Industrial Safety & Health). Unlike a generic trade licence, a factory licence is granted only after the premises, layout and safety arrangements are approved, and it governs everything from worker safety and working hours to hazardous-process controls. The sequence is front-loaded: the building / factory plan must be approved by the Chief Inspector before construction (Form 1 type approval), followed by application for registration and grant of licence under Sections 6 and 7. Around it sits a stack of supporting approvals — Fire NOC, Pollution Control Board CTE / CTO, building / occupancy certificate, and — where steam pressure plant is used — boiler registration under the Boilers Act, 1923. Factories engaged in a "hazardous process" (Schedule to the Act) carry heightened obligations: site appraisal, on-site emergency plans, mandatory safety and welfare officers, and disclosure to workers and the public. Operating a factory also triggers labour registrations and welfare compliance — PF, ESI, Contract Labour licensing, and statutory registers and returns. We handle factory licensing end-to-end — plan approval, licence application and grant, the supporting NOC stack, boiler and hazardous-process compliance, and annual licence renewals and returns — so production starts on a fully compliant footing.
Why Legal Door

Built for Outcomes, Trusted Pan-India

Specialist lawyers, transparent pricing and end-to-end execution from first call to final order.

Plan Approval First-Time-Right

Factory layout and plan prepared to the Inspectorate's norms so pre-construction approval is not delayed.

Hazardous-Process Expertise

Schedule-listed hazardous factories: safety officers, emergency plans and disclosures handled.

Supporting NOC Stack

Fire, pollution, boiler and occupancy approvals coordinated alongside the licence.

Renewals & Returns

Annual licence renewal, Form returns and register upkeep tracked so the licence never lapses.

What We Cover

Key Highlights

Applicability assessment (10+ with power / 20+ without)
Pre-construction factory building / plan approval (Chief Inspector)
Factory registration & licence under Sections 6 / 7, Factories Act, 1948
Stability certificate for factory building
Fire NOC with safety scheme
Pollution Control Board CTE / CTO consent
Boiler registration under Boilers Act, 1923 (if applicable)
Hazardous-process compliance (Schedule) — site appraisal & emergency plan
Safety Officer / Welfare Officer appointment (per worker threshold)
Occupier & Manager declaration (Form 2)
Contract Labour registration; PF & ESI
Statutory registers, abstracts & annual / half-yearly returns
Licence renewal & amendment (capacity / worker change)
Our Process

How We Help You

A straightforward, transparent path from first call to resolution.

1Applicability & Scoping

Confirm Factories Act applicability, worker count, power use and hazardous-process status.

2Plan Approval

Prepare and submit factory building / layout plan to the Chief Inspector for pre-construction approval.

3Supporting NOCs

Fire NOC, pollution CTE, boiler registration and occupancy / stability certificates.

4Licence Application

File registration & licence application (with occupier / manager details) under Sections 6 / 7.

5Inspection & Grant

Factory inspection; address observations; grant of factory licence.

6Compliance Setup

Registers, safety / welfare appointments, returns calendar and annual licence renewal.

Checklist

Documents Required

  • Land / premises documents & occupancy certificate
  • Factory building & layout plan (for plan approval)
  • Stability certificate from a competent engineer
  • Machinery list, installed power (HP) & worker count
  • Manufacturing process flow & material details
  • Occupier & Manager KYC and consent (Form 2)
  • Fire NOC and pollution consent
  • Boiler details / registration (if steam plant used)
Legal Framework

Applicable Laws & Regulations

Key statutes, rules and judicial precedents that govern this service.

Factories Act, 1948

Registration, licensing, safety, health and welfare of workers in factories.

State Factories Rules

State-specific procedures, forms, fee and renewal for factory licensing.

Boilers Act, 1923

Registration and periodic inspection of boilers / steam pressure plant.

Water Act, 1974 & Air Act, 1981

Pollution Control Board consent for the factory premises.

Contract Labour (R&A) Act, 1970

Registration where contract labour is engaged.

Avoid These Mistakes

Common Pitfalls

Costly errors we routinely help clients fix — or better, avoid altogether.

Building Before Plan Approval

Constructing the factory before the Chief Inspector approves the plan can force costly modifications or block the licence.

Misjudging Applicability

Assuming the Act does not apply (worker / power thresholds) when it does exposes the occupier to prosecution.

Hazardous-Process Gaps

Schedule-listed factories without safety officers, emergency plans and disclosures face severe liability.

Boiler Non-Registration

Operating an unregistered / uninspected boiler is a criminal offence with serious safety consequences.

Lapsed Renewal

Factory licences are periodic; missing renewal means operating without a valid licence and penalties on the occupier.

FAQs

Common Questions

Everything you need to know before you begin

When 10 or more workers are working (or worked in the preceding 12 months) with the aid of power, or 20 or more workers without power, in any manufacturing process. Some States prescribe lower thresholds.

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