Running a factory is serious work. It includes people, machines, safety, and law. One of the most important legal steps is having a factory license. But getting it once is not enough. You must renew your factory license every year or as required by your state rules.
Many factory owners do not think about it until the last minute. That can lead to delays, penalties, or even closure. A factory license renewal helps the government check if your factory still follows all the safety and labor laws. It also keeps your business running smoothly and without risk.
In this guide, you’ll learn how to apply for factory license renewal, what documents you need, where to apply, and how to avoid common mistakes.
A factory license is a legal paper. It lets you run a factory under the Factories Act, 1948. It is issued by the Chief Inspector of Factories in each state. The license checks if your factory is safe, has the right number of workers, uses safe machines, and keeps records.
You need a factory license if:
The law checks for health, safety, working hours, holidays, wages, and record-keeping.
You should apply for renewal at least 30 days before your license expires. For example, if your license ends on March 31, apply before March 1.
Some states open the portal in January. The earlier you apply, the better.
If you forget, you can still apply late, but with extra fees. In some cases, the department may refuse your renewal if you delay too much.
Renewal is not just about paying the fee. You need to submit documents that prove your factory still follows the law.
Documents | Purpose |
---|---|
Copy of the existing license | Confirms you had a valid license |
Filled renewal form | Official request for renewal |
Proof of fee payment | Shows you paid the renewal charges |
Updated list of machinery | Checks power use and safety |
Number of workers employed | Helps verify labor rules |
Factory layout plan | Confirms there’s no major change |
Safety and health compliance records | Ensures environment is safe for workers |
Challan copy | Proof of submission, especially for offline |
Make sure all documents are clear, signed, and updated. Any mismatch can lead to rejection.
Now let’s go through the step-by-step method to renew your factory license.
Each state has its own Labor Department website. For example:
Visit your state portal, find the section called “Factory License” or “Renewal,” and click on it.
You’ll need to register on the portal if you are applying for the first time online. If already registered, just log in using your credentials.
Fill in the factory name, license number, and employer details.
Open the renewal form. Enter the required information:
Keep the details exact. The form checks for mistakes.
Scan your documents. Upload them one by one. Use PDF or JPG format, as required. Double-check that all uploads are readable.
The fee depends on:
You can pay online through Net Banking, UPI, or Challan.
Click “Submit” after checking everything.
You will get a receipt or application number. Keep it safe. Use it to track your renewal status on the portal.
Fees vary by state and factory size. Below is an example (approximate):
Category | Fee (per year) |
---|---|
Up to 20 workers | ₹1,000 – ₹2,000 |
21 to 50 workers | ₹2,500 – ₹4,000 |
51 to 100 workers | ₹5,000 – ₹8,000 |
Above 100 workers | ₹10,000 – ₹20,000 |
Always check the updated fee list on your state’s official site.
Once approved, you will get a digital license. You can:
Keep a hard copy at the factory at all times. It may be needed during surprise inspections.
Renewing a factory license may seem like paperwork. But it’s a vital part of running a lawful and safe business. It protects your team. It keeps your factory on the right side of the law. And it helps you avoid surprise visits, fines, or shutdowns.
Do it once, and keep your details handy. Each year, the process becomes easier. If you stay prepared, renewal is just a few clicks away.
Start early. Stay ready. Keep your factory running without worry.
The major expense for a factory license in Delhi is an official fee based on the installed horsepower of your equipment and the maximum number of employees in your factory, ranging from a few hundred to tens of thousands of rupees a year, according to the schedule of the Labour Department. Be mindful that professional consultancy and required clearances such as Delhi Pollution Control Committee (DPCC) approval may incur additional expenses based on your factory operations and environmental load.
Factory License granted in Delhi under the Factories Act, 1948, is generally for one year, expiring on December 31st of the year of issue. But companies can renew their license for durations of one, five, or ten years by paying the respective renewal charges, giving flexibility and minimizing the necessity for frequent renewal.
In Delhi, if you are late in applying for factory license renewal, a 25% fine on the yearly license fee is charged. In the case of manually processed licenses, it would be if you apply after the 30th of November, and for online renewal, it would be if you apply less than 30 days from the December 31st deadline. Avoiding this additional amount, it would be advisable to apply for renewal advance.
In Delhi, a factory license under the Factories Act, 1948, would normally require renewal every year, with the license usually going out of force on 31st December every year. However, you can apply for renewal for one, five, or ten years at a time, providing flexibility in the renewal period.
Nishi Chawla
26 Sep, 2025
Nishi Chawla
26 Sep, 2025
Nishi Chawla
25 Sep, 2025
Nishi Chawla
25 Sep, 2025
Nishi Chawla
24 Sep, 2025
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