Factory License | VKH & ASSOCIATES

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A factory license, governed by the Factories Act, 1948, is a mandatory registration obtained from the state government's labor department. It authorizes the operation of a factory that employs ten or more workers with power, or twenty or more workers without power. The license ensures worker safety, adheres to labor regulations, and promotes a safe working environment.

Any facility engaging in manufacturing or production activities that meet the worker thresholds mentioned above requires a factory license. This applies to businesses of various sizes and industries.
Some small-scale manufacturing units with power and employing less than 20 workers might be exempt under specific state rules.

The application process for a factory license generally involves these steps:
Contact your state's Directorate of Industrial Safety and Factories.
Obtain and fill out the application form (usually Form 1). Many states offer online applications.
Gather the required documents (mentioned below).
Submit the application form and documents along with the prescribed fees.
The department might inspect your factory premises.
Upon approval, you'll receive the factory license.

The documents required for obtaining the shop and establishment registration certificate is-

Shop or Business establishment address proof.
ID proof of the proprietor.
PAN Card of the proprietor.
Details of the employees.
Payment challan.
Additional business licenses necessary for starting the business, if any.