Setting up a manufacturing unit? We assist with Factory Plan Approval, Stability Certification, and Licensing from the Directorate of Industrial Safety and Health (DISH).
Do you need a Factory License?
The Factories Act, 1948 mandates that any premise engaging in a manufacturing process must obtain a license if it employs:
• 10 or more workers with the aid of power.
• 20 or more workers without the aid of power.
[Image of Factory Safety Compliance Diagram]
The license is granted by the Chief Inspector of Factories (CIF) or the Directorate of Industrial Safety and Health (DISH) of the respective state. Operating without a valid license is a punishable offense and can lead to the closure of the unit.
Before construction/setup, factory plans must be approved by the Director (DISH). We assist in drawing layout plans as per statutory norms.
Filing of application (Form 2) for grant of new license. Coordination with factory inspectors for site verification and approval.
Obtaining the structural stability certificate from a government-approved Competent Person (Chartered Engineer). Mandatory for licensing.
Timely renewal of licenses (Annually or for 5/10 years blocks). We ensure your compliance calendar is never missed.
Filing of consolidated annual returns (Form 27) and half-yearly returns regarding employment, wages, and accidents.
Updating the license for change in Horse Power (HP), number of employees, name change, or transfer of ownership.
The documentation is extensive and varies slightly by state. Key documents include:
Running a factory without a valid license can lead to:
• Sealing of the premises.
• Fines up to ₹ 1 Lakh or more.
• Imprisonment for the Occupier/Manager.
Submission of factory drawings for safety verification.
Building the factory as per the approved plan.
Filing Form 2 online with Stability Certificate and Fees.
Factory Inspector visits to check safety measures & machinery.
License issued upon satisfactory report.
Full Consultancy
Depends on Worker Count & HP
*Govt fees are based on HP and Manpower.
Most consultants just fill a form; we manage the engineering and safety architecture.
You cannot just "get" a license for an existing building. You must first get the Building Plan & Machinery Layout approved by the Directorate of Industrial Safety and Health (DISH) before construction or installation. CloudDesk liaisons with "Approved Draftsmen" to ensure your ventilation, emergency exits, and machine spacing meet the 2026 safety codes.
A major bottleneck in 2026 is the Stability Certificate (Form 1A). We coordinate with Chartered Structural Engineers to certify that your building can handle the load of your heavy machinery, preventing rejections during the site inspection.
The Act identifies an "Occupier" (usually a Director/Proprietor) who is personally liable for any accidents. CloudDesk manages the Board Resolutions and Appointment Letters to clearly define these roles, protecting the rest of the board from operational legal risks.
A factory license isn't just about machines; it's about people. We ensure your layout includes mandated Canteens, Restrooms, First Aid Rooms, and Creches (if applicable) — the first things a Factory Inspector checks during the mandatory site visit.
Generally, No — you would fall under the Shop & Establishment Act. However, if your manufacturing involves "Hazardous Processes" (chemicals, explosives, etc.), the government can notify your unit under Section 85, making a license mandatory even with just 1 worker.
If you use electricity, solar, steam, or any mechanical energy to run even a single packaging machine or a small motor for your process, you are "with the aid of power."
No. A Factory License is only granted for premises in Conforming Industrial Zones or land with Non-Agricultural (NA) Industrial conversion.
• Approved Building Plans and Machinery Layout.
• Stability Certificate from a licensed Structural Engineer.
• NOC from Fire Department and Pollution Control Board (MPCB/CPCB).
• Proof of Ownership/Lease and Electricity Load Sanction.
• List of Raw Materials and Process Flow Chart.
In 2026, most states allow you to apply for a validity of 1, 5, or 10 years. CloudDesk recommends the 10-year renewal to avoid annual bureaucratic interference.
The Inspector checks: (1) If the machine layout matches the approved drawing, (2) If safety guards are on moving parts, (3) Adequate lighting/ventilation, and (4) If workers have proper PPE (Personal Protective Equipment).
Most states charge a 25% surcharge if the renewal application is not filed 30 days before expiry. If the license expires, you are technically operating an illegal unit.
Yes. If the "Occupier" changes or the business is sold, you must file an Amendment Application with the new details and the transfer deed.