An Introduction to Factory license in India

A factory license in India is a legal requirement for a business structure engaged in the production or manufacturing of different types of consumer products or others, processing, or storage of materials or chemicals hazardous in nature. The State Government is responsible for enforcing the Factories Act, 1948 grants a factory license upon fulfillment of the essential documentation and eligibility. You can talk to us anytime about the factory license registration process in India and other support.


Issuing a License for a Factory

The factory license is issued to an applicant in the below circumstances:

  • New Factory License – is issued to an applicant opening a new factory set up in a state in India. 
  • Factory License Renewal - license renewal of a factory is a mandate for an establishment whose existing license has expired which is generally on annual basis. 
  • Amendment to Factory License - Issued when changes or modifications are made to the factory layout, machinery, or processes.

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For owners of factories, it is crucial to make sure that they have a valid factory license and comply with all the State Government regulations. Failing to comply with the necessary regulations and operating a factory without a valid license is a punishable offence that can result in imprisonment or heavy fines.

The Application Process for A Factory License

The application process to obtain a license for a factory varies from one state to another. But generally, there are predefined steps that you need to follow. There is a facility for factory license online applications in India for your convenience.

Below are the common steps to learn:

  • The owner of a factory needs to submit the application to the Chief Factory Inspector designated by the respective state in the country.
  • The application must have the correct information with no scope for misinformation.
  • The application should have the factory information along with details like the factory location, registered address, size, manpower employed, and nature of operations.
  • The next step is to ensure the factory to be set up duly complies with the required regulations related to safety, hygiene, health, and others recommended by the State Government.
  • Post submission of your application, the designated factory inspector may conduct the necessary inspections to make sure the mandatory requirements are fulfilled by the factory owners. 
  • The Chief Inspector of Factories in the state will issue the required license after the inspection is completed successfully and the factory meets all the criteria.
  • Post obtaining the license, the owners can commence the work at the factory site.
Factory license in India
Factory License Documentation

Documentation for a Factory License in India is a key essential. One has to stay careful while completing or gathering the mandatory documents. The process involved in getting a factory license in Delhi or another location in India may vary. But when it comes to documentation, there is a certain document that remains the same for all the states.  

The following are some of the documents common in all the states in India:
  • Application form: The prescribed application form only should be used. It should have accurate and genuine information. Also, make sure the application form for the factory license is duly completed. 
  • Site & building plan: The site plan of the factory along with the building plan needs to be submitted for the information related to the location, site layout, surrounding, and the building details. 
  • Proof of ownership: Documents that support the land or factory building ownership for the factory setup should be submitted. 
  • Consent to Establish (CTE): The Consent to Establish (CTE) a factory from the State Pollution Control Board need to be obtained by the owner.
  • Consent to Operate (CTO): The factory owner post obtaining the Consent to Establish must obtain from the State Pollution Control Board the Consent to Operate (CTO). The CTO is issued only if the factory complies with the respective state pollution control norms.
  • Insurance documents: The application for a license should also have the required Insurance documents. It should prove that the factory is insured to manage losses arising out of unexpected circumstances.
  • Documents for Power supply and water supply: The relevant documents proving the factory’s access to the power supply and adequate supply of water should be submitted.
  • Safety & health plan: Safety at work is a key essential and should be strictly followed. The factory owners are required to submit a plan for safety and health at the factory site for the employees. It should also contain information covering the measures the factory will be taking to ensure the health and safety of not only employees but also visitors.
  • NOC from local authorities: The local authorities are responsible to provide a No-Objection Certificate (NOC) after considering essential factors, criteria, and regulations. This certificate is the proof for a factory that ensures that people or the environment will have no risk from the operation of the factory. You can also gather information about the MCD factory license online for the factory setup in Delhi.

Remember, the documentation to be done vary also on the basis of its size, industry type, product to be manufactured, and of course the specific state's regulations. We, therefore, advise you to consult with the local authorities in the state government for a detailed process, documents required, fees, and other information to apply for a factory license in Delhi, India.


Obtaining or applying for a factory license anywhere in India can be a challenging task for you. In case you are experiencing a shortage of time or are confused with the process involved in procuring the required license for your factory, you can appoint team Valcus for the licensing, documentation, and other registration needs. 

We assure you that you will be proud of your decision. Contact us today to seek a factory license in Delhi or to discuss your varied service needs in Delhi, India.

Frequently Asked Questions

The specific State Government in India is responsible for granting factory licenses subject to fulfillment of certain terms and conditions designed by the local administration.

A factory license is mandatory to comply with the different Indian laws and Factory Acts. Operating a factory in any corner of India without a valid license is a punishable offence. It can result in fines and become a reason for imprisonment.

Yes, obtaining Consent to Establish from the State Pollution Control Board is essential before applying for a factory license.

A factory license generally has a validity period of one year. It needs to be renewed annually.

Every State Government in India demands a factory comply with all the safety and health regulations which can include having adequate ventilation, lighting, fire safety measures, and providing clean drinking water and hygienic sanitation facilities.

The process of renewing a factory license involves submitting an application for renewal along with the necessary documents and fees to the Chief Inspector of Factories.

Yes, a factory license can be transferred from one owner to another, but the new owner must obtain a new license in their name.

The penalties for violating factory license regulations can include fines, imprisonment, and even the closure of the factory. The severity of the penalty depends on the nature and severity of the violation.