Factory Registration in India is a statutory compliance under the Factories Act, 1948, mandated for manufacturing units operating with a minimum number of workers and power usage. This registration ensures that working conditions, health, and safety standards are maintained in factories across India.
This detailed guide covers the eligibility, documents required, registration process, portal details, and post-registration compliance to help you navigate the legal requirements smoothly.
1. 📘 What is Factory Registration?
Factory Registration is the legal process through which manufacturers register their premises as a ‘Factory’ with the Chief Inspector of Factories (CIF) under the Factories Act, 1948. It grants permission to operate a manufacturing facility and ensures worker safety and statutory compliance.
2. ✅ Eligibility Criteria for Factory Registration in India
Factory Registration is mandatory if a business meets the following thresholds:
| Factory Type | Number of Workers | Power Usage | Registration Required |
|---|---|---|---|
| With Power | 10 or more | Yes | ✅ Yes |
| Without Power | 20 or more | No | ✅ Yes |
| Seasonal/Intermittent Manufacturing | Less than 10 | Conditional | ❌ Not Mandatory |
📌 Applies to both private and public factories involved in manufacturing, assembling, or processing of goods.
3. 🌟 Benefits of Factory Registration
- ✅ Legal recognition to operate a factory
- 🛡 Ensures worker health, safety & welfare compliance
- 📄 Required for obtaining pollution, fire, and labor licenses
- 🏭 Mandatory for large-scale manufacturing setups
- 🔍 Enables government inspection, grievance redressal, and accident tracking
4. 📑 Documents Required for Factory Registration
- 1. Application Form (Form 2)
- 2. Site/Building Plan signed by a competent authority
- 3. Address proof and ID of the Occupier & Manager
- 4. NOC from State Pollution Control Board (SPCB)
- 5. Electricity Connection Proof or Power Sanction Letter
- 6. List of Raw Materials and Finished Goods
- 7. Consent Letter from Local Authority/Municipality
- 8. Worker Details and Machinery List with HP ratings
- 9. MOA, AOA & Incorporation Certificate (for companies)
- 10. Valid Email ID and Mobile Number
5. 🌐 Government Portal & Authorities
Factory registration varies state-wise. Most registrations are conducted through Labour Department portals:
| State | Portal Name | Website URL |
|---|---|---|
| Maharashtra | MAITRI | https://maitri.mahaonline.gov.in |
| Karnataka | Seva Sindhu | https://sevasindhu.karnataka.gov.in |
| Delhi | e-District | https://edistrict.delhigovt.nic.in |
| Tamil Nadu | Labour Department Portal | https://www.lms.tn.gov.in |
| All-India (General Info) | Ministry of Labour and Employment | https://labour.gov.in |
6. 🧷 Step-by-Step Registration Process
| Step | Action |
|---|---|
| 1 | Visit your respective state Labour Department portal |
| 2 | Register as a new user (using PAN/Email/Phone) |
| 3 | Select “Apply for Factory Registration / License” |
| 4 | Fill Form 2 with details of occupier, workers, power, production, etc. |
| 5 | Upload required documents |
| 6 | Pay registration fee based on the number of workers and power used |
| 7 | Submit application and obtain acknowledgment |
| 8 | Factory inspection conducted by Factory Inspector |
| 9 | Verification and approval |
| 10 | Download Factory License Certificate |
⏱ Timeline: 15–45 working days
💳 Fees: Varies by state (approx ₹300 – ₹7,000+ annually based on workers/power)
7. 📌 Post-Registration Compliances
| Compliance | Frequency | Mandatory | Priority |
|---|---|---|---|
| Annual Return under Factories Act (Form 34) | Annually (by Jan 31) | ✅ Yes | High |
| License Renewal | Every 1–5 years | ✅ Yes | High |
| Maintenance of Registers (Accident, Workers, etc.) | Ongoing | ✅ Yes | High |
| Periodic Health Checkup of Workers | As per industry | ✅ Yes | Medium |
| Safety and Welfare Measures Audit | Half-Yearly/Yearly | ✅ Yes | Medium |
| Reporting of Accidents and Incidents | Immediate | ✅ Yes | High |
8. 📊 Summary Table
| Parameter | Details |
|---|---|
| Governing Law | Factories Act, 1948 |
| Applicable Entities | Manufacturers employing 10+ workers with power OR 20+ workers without power |
| License Type | Factory License |
| Validity Period | 1 to 5 years |
| Fee | Based on number of workers and power usage |
| Inspection Required | Yes |
| Return Filing | Annual Return (Form 34), Registers |
| Issuing Authority | Chief Inspector of Factories (CIF) |
📌 Internal & External Links
- If your unit is involved in manufacturing with turnover over ₹20 crores, also apply for Central FSSAI License
- To deduct TDS for employees, obtain TAN Registration
- Factory premises must register under Shops and Establishment Act if applicable
- You may also need Professional Tax Registration depending on the state
- Visit the Ministry of Labour Website for factory act guidelines and latest circulars
❓ Frequently Asked Questions (FAQs)
- Who needs Factory Registration in India?
Any manufacturing unit with 10 or more workers (using power) or 20 or more (without power) must register. - Is Factory License required for contract manufacturing units?
Yes, if the factory fits within the eligibility criteria. - Can I register a factory online?
Yes, registration is fully online in most states via state labour department portals. - How long is the factory license valid?
Between 1 to 5 years, based on the period chosen during application. - Is there any inspection involved?
Yes, the Inspector of Factories usually conducts a physical verification. - What are the penalties for non-registration?
Penalties may include fines up to ₹1 lakh and imprisonment up to 2 years. - Can an LLP or partnership firm register a factory?
Yes, any legal entity operating a manufacturing unit must register. - Are startups exempted from Factory Registration?
No. If they fall under the thresholds, registration is mandatory. - Is factory license transferable?
No. A new license must be obtained in case of change in ownership or structure. - What is Form 2 in factory registration?
It is the application form prescribed under the Factories Act to register a factory.
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