Simplicomp

Factory Act Licence & Factory Registration Certificate

A Factory Act Licence,also referred to as a factory registration certificate, is a mandatory statutory approval required for manufacturing units before commencement of production or processing activities. This factory license registrationis issued under the Factories Act, 1948 by the State Labour Department / Chief Inspector of Factories.

The licence confirms that the factory premises, machinery layout, and working conditions comply with prescribed standards of health, safety, and welfare,and that the unit is legally permitted to operate.

Factory Act approvals are sometimes also referred to as factory approval / NOC or labour license approval, depending on state-level terminology.

What Is a Factory Licence ?

A factory licence is a legal authorisation granted to premises where a manufacturing process is carried out and where statutory thresholds relating to workforce strength and use of power are met.
The licence certifies that :-

The factory has completed factory license registration with the Labour Department

Layout and machinery placement meet safety norms

Adequate provisions exist for worker health, welfare, and safety

The occupier and manager are legally accountable for compliance

Without a valid factory registration certificate,manufacturing operations cannot legally commence, even if Pollution Control Board approvals have already been obtained.

Our Company

Applicability of Factory Licence Registration

A factory licence is required where :-

10 or more workers are employed with power, or
20 or more workers are employed without power, and a manufacturing process is carried out.

These studies support responsible groundwater use while safeguarding community water resources.

More About Us

Stages of Factory Act Approval

Factory Plan Approval (Pre-Construction Stage)

Before construction or installation of machinery, factory layout plans must be submitted for factory approval / NOCfrom the Labour Department. This ensures :-

Safe machinery spacing and workflow
Emergency exits, ventilation, and lighting
Compliance with occupational safety norms

This stage is often processed alongside Consent to Establish (CTE) and provisional fire safety approval.

Factory Licence Before Commencement of Operations

After construction and installation :-

Safety systems and guarding are verified
Welfare facilities are inspected
Compliance with approved plans is confirmed

Only after this verification is the factory license registration completed and the factory registration certificate issued, allowing lawful commencement of production.

Why Factory Licence & Labour Approval Is Critical

Failure to obtain a valid factory licence or labour license approval can result in :-

Prosecution of occupier and manager

Monetary penalties or imprisonment

Closure or suspension of operations

Delay or rejection of CTO / CCA approvals

Increased liability in case of accidents

Factory Act compliance is a pre-condition for lawful industrial operations, not a procedural formality.

Legal Responsibilities Under the Factories Act

The Factories Act places primary responsibility on the occupier and factory manager to ensure :-

Safe plant, systems, and processes

Proper handling and storage of materials

Worker training and supervision

Emergency preparedness and hazard disclosure

For hazardous processes, additional obligations such as safety committees, on-site emergency plans, and medical surveillance apply.

Documents Typically Required

Documents commonly required for factory license registration include:

Approved factory layout and site plan
Manufacturing process description
Machinery list and horsepower details
Worker strength and shift details
Fire Safety NOC / Certificate (where applicable)
Consent to Establish (CTE) reference
Proof of land possession or lease
Authorisation letter / board resolution

How Simplicomp Supports Factory Licence & Labour Approvals

Simplicomp provides end-to-end support for :-

Factory licence applicability assessment

Factory approval / NOC and layout planning

Factory license registration and renewal

Coordination with Labour Department authorities

Inspection support and compliance closure

Our approach ensures factory licence approvals align seamlessly with PCB consents and fire safety requirements, avoiding operational delays.

Questions

Have any questions?

Here are clear, regulator-aligned answers to help you understand EC requirements and expectations.

Ask Your Question

Is factory licence required even if PCB consent is obtained?

Yes. Pollution Control Board approvals and factory licence registration are issued by different authorities and serve different legal purposes.

Can production start without a factory registration certificate?

No. Commencing manufacturing without a valid factory licence is illegal.

Is factory licence required for expansion or modification?

Yes. Any change in layout, machinery, or workforce strength may require amendment or fresh approval.

Is factory licence the same as labour license approval?

Factory licence is issued under the Factories Act, while labour licences may apply under other labour laws depending on the nature of employment.

Need Groundwater Impact Assessment Support?

Speak with our groundwater experts to assess applicability and prepare regulator-compliant groundwater impact assessment reports.

Request Groundwater Impact Assessment Support

Related Compliance Requirement: Annual Groundwater Compliance & Returns

Groundwater impact assessments are often reviewed alongside annual compliance submissions and renewal applications.

View Annual Groundwater Compliance Services

Request Factory Licence & Labour Compliance Consultation

👉 Request Factory Licence & Labour Compliance Consultation

Related Approvals

🔗 Related PCB Process

Consent to Operate (CTO) Consolidated Consent & Authorisation (CCA)

🔗 Related Statutory Approval

Fire Safety NOC / Fire Safety Certificate

Services Details