Factory Registration & Licence — Section 6, Factories Act 1948

Section 2(m) of the Factories Act, 1948: definition of factory — premises with 10+ workers with power or 20+ without power in a manufacturing process. Section 6: state government may require approval of site/building plans before a factory is established or extended. Section 7: occupier must send written notice (Form No. 1) to the Chief Inspector of Factories at least 15 days before the factory begins to work; notice to include name of factory, occupier, manufacturing process, number of workers, and power load. Section 9: powers of Inspector to enter, inspect, and examine factory premises. Section 92: penalty for contravention — imprisonment up to 2 years or fine up to Rs. 1 lakh or both for first offence; enhanced for repeat offences. Section 108: notices to be displayed in factory; Section 62: registers of workers; Section 88: notice of accidents. Contract Labour (Regulation and Abolition) Act, 1970, Section 12: separate licence for principal employer engaging 20+ contract workers.

The Factories Act, 1948 is the primary central legislation governing the health, safety, welfare, and working conditions of workers employed in factories in India. Before any new factory can be established or an existing factory can double its workforce, the occupier must comply with the registration and licensing requirements under Section 6 of the Act. The term "factory" is defined under Section 2(m) of the Factories Act, 1948 as any premises where on any day in the preceding twelve months, ten or more workers are working and a manufacturing process is being carried on with the aid of power, or twenty or more workers are working without the aid of power. This threshold makes the Act applicable to a very wide range of manufacturing establishments — from large industrial plants to small engineering workshops and food processing units.

Section 6 of the Factories Act, 1948 mandates that the state government may require that any factory site, building, or extension thereof must be approved by the Chief Inspector of Factories before construction or occupation. Consequently, an occupier who intends to use any premises as a factory must make an application to the Chief Inspector of Factories of the concerned state, along with building plans, site plans, and a statement of the manufacturing process. Additionally, Section 7 of the Act requires the occupier of a factory to send a written notice to the Chief Inspector at least 15 days before the factory begins to work. This notice — typically in Form No. 1 as prescribed under state factory rules — must contain details including the name and address of the factory, name and address of the occupier, nature of the manufacturing process, number of workers employed, and the connected electrical load.

The Factory Licence, once issued, requires annual renewal. The licence fee is state-specific and typically varies with the number of workers employed and the horsepower of the machinery installed. Failure to obtain a factory licence or to renew it constitutes an offence under Section 92 of the Factories Act, 1948, which provides for imprisonment of up to two years or a fine of up to Rs. 1 lakh, or both, for a first offence. Repeat offences attract enhanced penalties. In addition to the Factory Licence, factories employing 20 or more contract workers are required to obtain a separate licence under Section 12 of the Contract Labour (Regulation and Abolition) Act, 1970. Many states have also enacted their own factory rules (e.g., Maharashtra Factories Rules, 1963; Tamil Nadu Factories Rules, 1950) which prescribe additional procedural requirements.

Our service covers the end-to-end factory licence application — from reviewing the site plan and manufacturing process documentation to coordinating with the state Chief Inspector's office, filing Form No. 1 (notice) and the licence application, attending inspections as required, and obtaining the final Factory Licence Certificate. We also assist with annual renewal filing and factory inspection preparedness under Section 9 (inspection powers of inspectors).