Who Needs This Service?
Under the Factories Act, 1948, acquiring an operational license is mandatory for:
- Manufacturing facilities, warehouses, and industrial plants employing 10 or more workers operating with electricity or machine power.
- Any manufacturing workshops or processing units employing 20 or more workers operating without the aid of electric power.
- Existing factories adding physical extensions, installing higher capacity machinery, or changing the line of production.
Consequences of Non-Compliance
Running a factory without a valid license, operating past renewal deadlines, or failing basic safety layouts constitutes a severe legal violation:
- Operational Closure: Local inspectors possess powers to seal the facility, seize machinery, and disconnect power and water lines.
- Severe Penalty Fines: Fine charges up to ₹2,00,000 plus an additional daily fine of ₹1,000 for ongoing violations.
- Criminal Prosecution: Imprisonment up to 2 years for the designated manager and business owners/occupiers.
Required Documentation Checklists
Keep these structural approvals and premises deeds ready for the Inspectorate of Factories:
- Approved architectural layouts (Floor plan, elevations, ventilation, and fire escape paths)
- Land ownership certificate or registered lease agreement of the factory premises
- No Objection Certificate (NOC) from local fire departments and Municipal bodies
- State Pollution Control Board CTE (Consent to Establish) and CTO (Consent to Operate) copies
- Details of raw materials, manufacturing workflow chart, list of machinery with Horsepower (HP) loads
Ensure Valid Statutory Factory Licensing
Protect your facility from operational closure orders and daily financial penalty fines of up to ₹1,000. Schedule your free consultation.