Operating a factory in India involves more than just setting up machinery and hiring workers—it requires strict adherence to a range of regulatory requirements, with factory licensing being a critical first step. The Factories Act, 1948, along with state-specific rules and the Occupational Safety, Health, and Working Conditions (OSHWC) Code, 2020, mandates that factories obtain and maintain proper licenses to operate legally. Non-compliance can lead to hefty fines, operational shutdowns, or legal consequences. At Sankhla Corporate Services Pvt. Ltd., our Factory Licensing Services provide comprehensive support to help manufacturing businesses secure licenses, stay compliant, and focus on production. In this article, we’ll explore what factory licensing entails, why it’s essential, and how our services can streamline the process for you.

What Are Factory Licensing Services?

Factory licensing services involve assisting businesses in obtaining, renewing, and maintaining licenses required under the Factories Act, 1948 and other relevant regulations. A factory, as defined under the Act, is any premise where 10 or more workers are engaged in manufacturing with power, or 20 or more without power. Licensing ensures that factories meet safety, health, and welfare standards, protecting workers and ensuring legal compliance.

Our Factory Licensing Services at Sankhla Corporate Services include:

License Application: Preparing and submitting applications for factory licenses.

Renewals and Amendments: Managing timely renewals and updates to licenses due to changes in operations or workforce.

Compliance Audits: Conducting assessments to ensure adherence to safety and regulatory standards.

Documentation Support: Maintaining records like safety registers, worker records, and inspection reports.

Liaison with Authorities: Coordinating with state labour departments to expedite approvals and resolve issues.

Why Factory Licensing Matters

Obtaining a factory license is not just a legal requirement—it’s a foundation for safe and compliant operations. Non-compliance can have severe consequences:

Penalties: Operating without a valid license can result in fines up to ₹1 lakh or imprisonment for up to 2 years under the Factories Act, 1948.

Operational Risks: Authorities can order factory shutdowns for non-compliance, disrupting production.

Worker Safety: Licensing ensures adherence to safety standards, reducing workplace accidents and liabilities.

Reputation: A compliant factory builds trust with employees, clients, and regulators, enhancing business credibility.

With the OSHWC Code, 2020 set to fully roll out in 2025, factories face updated compliance requirements, such as mandatory safety committees and health check-ups. Partnering with a trusted provider like Sankhla Corporate Services ensures your factory meets these evolving standards.

Key Factory Licensing Requirements in India

The Factories Act, 1948, supplemented by state-specific rules and the OSHWC Code, 2020, outlines the licensing and compliance obligations for factories. Here are the key requirements:

1. Factory License Registration

Who Needs It: Any premise with 10+ workers (with power) or 20+ workers (without power) engaged in manufacturing.

Process: Submit an application (Form 2 in most states) to the state’s Chief Inspector of Factories, along with details like factory layout, machinery, and worker count.

Timeline: Applications must be submitted before operations begin, with approvals typically taking 30–60 days.

Example: In Gujarat, factories must apply online via the Labour Department portal, with fees based on worker count and horsepower.

2. License Renewal

Requirement: Licenses are typically valid for 1–5 years, depending on the state, and must be renewed before expiry.

Process: Submit renewal applications with updated details and fees, along with compliance records.

Penalty: Operating with an expired license can lead to fines up to ₹50,000 or suspension of operations.

3. Safety and Health Compliance

Laws Involved: Factories Act, 1948 and OSHWC Code, 2020.

Requirements: Provide safe working conditions, fire safety measures, ventilation, and annual health check-ups for workers.

Example: The Gujarat OSHWC Rules, 2025, mandate safety committees for factories with 50+ workers or hazardous processes.

Penalty: Non-compliance can result in fines up to ₹5 lakh or imprisonment for up to 2 years.

4. Record-Keeping

Requirement: Maintain registers for attendance, wages, accidents, and safety inspections, as mandated by the Factories Act.

Digital Records: The OSHWC Code, 2020 encourages digital record-keeping for easier audits.

Penalty: Incomplete records can trigger fines during inspections.

5. Statutory Filings

Requirement: File annual returns (e.g., Form 21 in many states) and report accidents or hazardous incidents to the labour department.

Example: Factories must report serious accidents within 4 hours under the OSHWC Code, 2020.

How Sankhla Corporate Services Simplifies Factory Licensing

At Sankhla Corporate Services Pvt. Ltd., we take the complexity out of factory licensing, ensuring your manufacturing operations are compliant and efficient. Here’s how we help:

1. End-to-End Licensing Support

We handle the entire licensing process, from preparing applications to securing approvals from state labour departments.

Our team ensures compliance with state-specific rules, such as Gujarat’s online licensing portal or Maharashtra’s factory registration process.

2. Affordable Compliance Audits

Starting at just ₹500, our audits assess your factory’s compliance with the Factories Act, 1948 and OSHWC Code, 2020.

We identify gaps in safety, licensing, or record-keeping and provide actionable solutions.

3. Tech-Enabled Solutions

Our proprietary platform automates compliance tracking, including license renewal deadlines and statutory filings.

Secure digital storage ensures your records are audit-ready and easily accessible.

4. Expert Guidance

Led by M.S. Sankhla, with over 10 years of corporate HR experience, and supported by G.S. Thakur, a retired Deputy Labour Commissioner with 36+ years in the Labour Department, our team offers unmatched expertise.

We provide tailored advice for industries like textiles, chemicals, and heavy machinery.

5. Nationwide Reach

Based in Gurugram, we serve factories across India, leveraging strong relationships with labour departments to expedite approvals.

Whether you operate a single factory or multiple units, we act as your single point of contact.

6. Safety and Welfare Compliance

We assist in setting up safety committees, conducting health check-ups, and implementing welfare measures to meet OSHWC Code requirements.

Our services ensure your factory is prepared for surprise inspections by labour authorities.

Benefits of Our Factory Licensing Services

Hassle-Free Licensing: We manage applications, renewals, and amendments, saving you time and effort.

Cost-Effective: Affordable audits and services tailored to your factory’s size and budget.

Regulatory Compliance: Stay aligned with the Factories Act, 1948 and OSHWC Code, 2020, avoiding fines and shutdowns.

Worker Safety: Ensure a safe workplace, reducing accidents and boosting employee morale.

Business Growth: A compliant factory attracts investors, clients, and top talent.

SEO-Optimized Tips for Factory Licensing in 2025

To streamline your factory licensing process and enhance online visibility, consider these SEO-friendly tips:

Stay Updated: Monitor changes to the OSHWC Code, 2020, fully rolling out in 2025, for new safety and licensing requirements.

Leverage Local SEO: Use keywords like “factory licensing services in Gurugram” or “Factories Act compliance in India” to attract local clients.

Adopt Technology: Use compliance software to track licensing deadlines and maintain digital records.

Conduct Regular Audits: Schedule annual compliance audits to stay prepared for inspections.

Partner with Experts: Work with trusted providers like Sankhla Corporate Services to navigate complex regulations.

Why Choose Sankhla Corporate Services?

Since 2002, Sankhla Corporate Services Pvt. Ltd. has been a trusted partner for manufacturing businesses across India, delivering expert factory licensing and compliance solutions. Our mission is to simplify the regulatory landscape, ensuring your factory operates legally and efficiently. With a team of seasoned professionals, a tech-driven platform, and a client-centric approach, we help you achieve compliance with ease.

Ready to Secure Your Factory License? Visit sankhlaco.com for a free consultation or to schedule start ₹500 compliance audit. Let us handle your licensing needs, so you can focus on driving production and growth!