# Factory Licence & Registration

> Under the Occupational Safety, Health and Working Conditions Code, premises where 20 or more workers work with power, or 40 or more without power, are factories and need a licence from the state's factory authority, usually after building plan approval. The occupier must meet safety, health and welfare standards — fire safety, ventilation, drinking water, canteens and crèches above set thresholds — and file returns.

Practice: Labour Law & HR Compliance — https://www.industax.com/services/labour-hr/

The OSH Code raised the factory thresholds from the old Factories Act (10/20 workers), so some small units have moved out, while state rules govern the procedure, fees and renewal periods.

We coordinate plan approval and licence applications, prepare the compliance documents (safety policy, registers, medical examinations where hazardous processes are involved) and track renewals.

## Key facts

| Item | Detail |
| --- | --- |
| Factory threshold | 20 workers with power; 40 without |
| Authority | State Chief Inspector-cum-Facilitator |
| Before construction | Plan approval |
| Welfare triggers | Canteen, crèche, safety officer at set headcounts |

## Who needs this

- New manufacturing units
- Units expanding headcount or capacity
- Factories moving to the OSH Code

## What's included

- Applicability check
- Plan approval and licence application
- Compliance documentation
- Renewal tracking

## Documents

- Site and building plans
- Process flow and machinery list
- Occupier and manager details
- Pollution consent

## Process

1. **Approve** — Building plans approved.
2. **License** — Factory licence obtained.
3. **Comply** — Registers, returns and renewals.

## FAQs

### Does a small unit with 15 workers need a factory licence?

Under the OSH Code thresholds, a unit with 15 workers using power isn't a factory, though states can notify smaller units as factories for hazardous processes. Other registrations still apply.

### Is pollution consent needed before the factory licence?

Usually the state asks for Consent to Establish/Operate from the Pollution Control Board as part of the documents.

### Who is the 'occupier'?

The person with ultimate control over the factory — for a company, a director is usually named as occupier and is responsible for compliance.

## Official sources

- Ministry of Labour & Employment — Labour Codes: https://labour.gov.in/

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Canonical page: https://www.industax.com/services/labour-hr/factory-licence
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.