Factory License Online Registration (Factories Act, 1948)
eFileSeva provides end-to-end professional assistance for obtaining a Factory License under the Factories Act, 1948. Whether you are setting up a small manufacturing unit or a large industrial plant, we help you secure approvals from the Directorate of Industrial Health and Safety (DISH). Our experts handle everything from factory plan approval and document drafting to stability certificate procurement and final license issuance.
As per statutory regulations, any manufacturing unit employing 10 or more workers with the aid of power, or 20 or more workers without the aid of power, is legally mandated to obtain a Factory License. Securing this license is vital for ensuring workplace safety, protecting against heavy municipal penalties, and fulfilling mandatory health and welfare standards. It serves as essential proof of your unit's compliance during statutory industrial audits and is required for securing industrial power connections and bank financing.
The registration workflow involves submitting detailed factory site plans, manufacturing process flowcharts, machine horsepower (HP) lists, and stability certificates on the respective State Labor or DISH Portals. eFileSeva simplifies the complex multi-stage process—including initial plan approval and subsequent license grant—ensuring error-free filing for fast-track processing and managing your annual license renewals and amendments.
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Key Details for Factory License Registration (Factories Act, 1948)
eFileSeva provides end-to-end professional assistance for obtaining a Factory License under the Factories Act, 1948. We manage the entire multi-stage process—from prior plan approval and architectural layout vetting to stability certificate coordination and final submission on the state DISH (Directorate of Industrial Health & Safety) portal—ensuring your industrial unit is fully compliant with statutory safety and welfare norms.
| # | Topic | Details |
|---|---|---|
| 1 | What is a Factory License? | A statutory permit granted by the Chief Inspector of Factories (DISH) that authorizes manufacturing activities. It regulates workplace safety, ventilation, machine guarding, and ensures the health and welfare of workers under the Factories Act, 1948. |
| 2 | Registration Timeline | The process takes approximately 20 to 30 working days. This includes two main stages: Plan Approval (architectural layout vetting) and the subsequent Grant of License following a site inspection. |
| 3 | Applicability Threshold |
Mandatory for premises carrying out manufacturing where:
|
| 4 | Plan Approval Requirement | Prior to starting construction or machinery installation, the "Occupier" must obtain Site Plan Approval. Blueprints must show machine placement, emergency exits, ventilation, and sanitation facilities. |
| 5 | Stability Certificate (Form 1A) | A mandatory certificate issued by a Competent Person (Structural Engineer) certifying that the factory building is structurally safe to bear the specific machinery load and vibrations. |
| 6 | Licence Fee Calculation | The government registration fee is determined by two variables: the Maximum Number of Workers to be employed and the Total Installed Horsepower (HP) of all machinery. |
| 7 | Mandatory Documents |
Standard documentation includes:
|
| 8 | Statutory Safety Compliance | Establishments must maintain an Accident Register (Form 12), conduct annual health check-ups for workers, provide PPE (Safety Gear), and maintain Lime Washing/Painting registers. |
| 9 | Validity & Renewal | Licenses can be issued for a period of 1 to 10 years depending on the state and advance fees paid. Renewal applications must be submitted 30 days before the expiry (usually by December 31st). |
| 10 | Related Industrial Compliances |
eFileSeva also assists with integrated industrial and labour permits:
Pollution Control Board (PCB) Consent
Fire Department NOC
EPF & ESIC Registration
Professional Tax (PT) Registration
MSME / Udyam Registration
Maintenance of Labour Registers
Trademark for Industrial Brands
ISO 45001 (Safety) Certification Support
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Factory License (Factories Act, 1948) in India: Everything You Need to Know
Secure Your Factory License & Plan Approval with Expert Support
Obtaining a Factory License under the Factories Act, 1948 is a mandatory statutory requirement for any manufacturing unit operating in India. Regulated by the Directorate of Industrial Health and Safety (DISH) or the Chief Inspector of Factories of the respective state, this license ensures that industrial premises are designed and operated to safeguard the health, safety, and welfare of workers while maintaining standardized manufacturing processes.
Under the Act, registration is compulsory for any premises where a manufacturing process is carried out employing 10 or more workers (with the aid of power) or 20 or more workers (without the aid of power). Whether you operate a textile mill, an engineering workshop, or a chemical plant, securing this license is the first step toward legalizing your industrial production.
A valid Factory License is a prerequisite for several other critical industrial approvals. It is essential for obtaining Industrial Power Connections, securing high-value bank financing for machinery, and fulfilling the requirements for Pollution Control Board (PCB) NOCs. Furthermore, it is a non-negotiable document for participating in government industrial tenders and passing corporate social responsibility (CSR) audits by multinational clients.
The registration process is multi-staged and involves the critical Factory Plan Approval. Before construction or installation of machinery begins, detailed architectural layout plans must be submitted showing machinery placement, emergency exits, ventilation, and sanitation. Along with the plans, manufacturers must submit manufacturing flowcharts, horsepower (HP) details, and a Stability Certificate issued by an authorized structural engineer.
Post-issuance, the license remains valid for a period ranging from 1 to 10 years depending on the state and the advance fees paid. Renewal applications must be filed at least 30 days prior to expiry. Operating without a valid license or failing to report accidents can lead to the immediate sealing of the industrial unit, heavy financial penalties, and criminal prosecution of the 'Occupier' or Director.
Beyond simple registration, factory owners must maintain various Statutory Industrial Registers, including the Muster Roll, Register of Lime Washing, Accident Register (Form 12), and health check-up records for workers involved in hazardous processes.
eFileSeva provides end-to-end industrial consultancy for Factory Licensing—from architectural plan vetting and HP calculation to stability certificate coordination and final portal submission—ensuring your industrial unit launches smoothly and remains 100% audit-compliant.
Vikram Singhania
Managing Director, Singhania Engineering Works
"The factory plan approval process seemed overwhelming with all the machine layout and ventilation requirements. eFileSeva's technical team guided us through the HP calculations and handled the DISH portal filing flawlessly. We received our license in record time!"
ISO 45001 Safety Standards Support
Key Benefits & Importance of Factory License
A Factory License, issued under the Factories Act, 1948, is a mandatory statutory permit for any manufacturing unit employing 10 or more workers with power. Beyond fulfilling a legal obligation, obtaining this license ensures that your industrial unit is built on approved safety standards, protects the 'Occupier' from criminal liabilities, and is a non-negotiable requirement for securing industrial power connections and bank financing.
Legal Authorization
Statutorily authorizes manufacturing activities, protecting the unit from sudden closure orders by DISH inspectors.
- 100% compliant with Factories Act
- Avoids heavy compounding fines
- Grants legal right to manufacture
Workplace Safety Standards
Ensures the plant layout is safe, ventilated, and structurally stable for high-load machinery operations.
- Mandatory Factory Plan Approval
- Certified building Stability Proofs
- Reduces risk of industrial accidents
Infrastructure & Finance
A registered factory license is primary proof required for high-tension power loads and industrial bank loans.
- Prerequisite for Industrial Power
- Essential for Machinery Financing
- Required for PCB (Pollution) NOC
Labour Welfare Compliance
Regulates working hours, mandatory shifts, canteen facilities, and health check-ups for the workforce.
- Prevents arbitrary over-work claims
- Standardizes sanitation & amenities
- Mandates safety training & PPE usage
B2B & Tender Eligibility
Multinational companies and Government agencies require a valid license to onboard you as a manufacturing partner.
- Mandatory for MSME Industrial Tenders
- Key for MNC Vendor Audits/CSR
- Proves operational scale to clients
Protection against Prosecution
Shields the Board of Directors and Partners from criminal proceedings as long as safety norms are maintained.
- Defines legal 'Occupier' responsibility
- Immunity from unauthorized unit raids
- Builds trust with tax & labour depts
Important Statutory Note:
Under the Factories Act, 1948, a license is mandatory for manufacturing units with 10 or more workers (using power) or 20 or more workers (without power). The process begins with Factory Plan Approval, which must be obtained prior to construction or machinery installation. Post-allotment, the Occupier must maintain various statutory registers (Muster Roll, Accident Register, Lime Washing) and ensure annual renewals. Failure to display a valid Factory License during inspection can result in immediate sealing of the plant and prosecution of the Directors.
Eligibility & Requirements for Factory License (Factories Act, 1948)
Obtaining a Factory License is a mandatory legal requirement for manufacturing units in India. Ensure your unit meets the statutory worker thresholds, technical layout standards, and safety norms mandated by the State DISH (Directorate of Industrial Health & Safety).
Scope of Manufacturing Activity
Applicable to any unit engaged in a Manufacturing Process as defined under Section 2(k), including making, altering, repairing, finishing, packing, or cleaning any article for use, sale, transport, or disposal.
Statutory Worker Thresholds
A license is legally mandatory for premises employing:
• 10 or more workers: If manufacturing involves the use of Electric Power.
• 20 or more workers: If manufacturing is done without the aid of power.
Prior Site Plan Approval
Before construction or machinery installation, you must obtain Factory Plan Approval. Detailed engineering blueprints showing machine layouts, ventilation, emergency exits, and worker amenities must be vetted by the department.
Designation of the 'Occupier'
The establishment must designate a person (Director/Partner) as the Occupier. This individual has ultimate control over the factory's affairs and is statutorily responsible for worker safety, health, and welfare.
Stability Certificate (Form 1A)
A Certificate of Stability issued by a government-authorized 'Competent Person' (Structural Engineer) is mandatory. It ensures the industrial building can safely withstand the vibrations and loads of the installed machinery.
Connected Horsepower (HP) Data
License categories and fees are directly tied to the Total Installed Horsepower. A technical list of all machinery with their respective motor HP ratings must be submitted for accurate slab assessment.
Mandatory Industrial Clearances
- Pollution NOC: Consent to Establish/Operate from the State Pollution Control Board.
- Fire Safety: Provisional or Final NOC from the Fire Department.
- Industrial Power: Valid sanction letter for industrial electrical load.
Safety Policy & Accident Reporting
The factory must maintain an Accident Register (Form 12) and implement a Safety Policy (for 50+ workers). Failure to report dangerous occurrences or maintain health check-up records leads to immediate prosecution.
eFileSeva Factory Compliance Assistance
eFileSeva provides end-to-end industrial consultancy, managing everything from architectural layout vetting and HP slab calculation to stability certificate coordination and final DISH portal filing.
Ready to Apply for your Factory License?
eFileSeva provides expert technical guidance for Factory Plan Approval and License Grant across all industrial states.
Start Plan ApprovalDocuments Required for Factory License (Factories Act, 1948)
eFileSeva helps you compile and verify the complex technical and legal documentation required for a Factory License and Prior Plan Approval. Regulated by the Directorate of Industrial Health and Safety (DISH), the process demands high precision in machinery layouts and safety data. Our industrial compliance experts ensure your architectural plans, stability certificates, and HP calculations are perfectly aligned with statutory norms to ensure a query-free approval process.
Occupier KYC
Statutory identity credentials of the person designated as 'Occupier' (Director/Partner) under the Act.
- PAN Card and Aadhaar Card of the designated Occupier
- Recent Passport-size photograph of the Occupier and Factory Manager
- Board Resolution / Authorization naming the 'Occupier' as per Section 2(n)
- Active Mobile Number & Email ID for DISH portal authentication
Entity & Land Proofs
Legal evidence of the business structure and the industrial land/building title or tenancy.
- PAN Card of the firm and COI / Registered Partnership Deed
- Registered Sale Deed / Lease Deed or Registered Rent Agreement
- Land Use Conversion (NA) Certificate or MIDC/GIDC/Industrial Plot allotment
- 7/12 Extract or latest Property Tax Receipt of the factory premises
Industrial Clearances
Mandatory technical sanctions and NOCs from state and local regulatory bodies.
- Industrial Power Sanction Letter (Total Connected Load/HP)
- Pollution Control Board (PCB) Consent to Establish (CTE) / Operate (CTO)
- Fire Department NOC (Provisional or Final) with compliance report
- Local Body / Gram Panchayat / Municipal Corporation permission (NOC)
Technical Blueprints
Detailed architectural drawings required for Prior Plan Approval.
- Architectural Plans: Site plan, building elevation, and cross-section drawings
- Machine Layout: Blueprint showing machinery placement and worker movement area
- Process Flowchart: Detailed description of the step-by-step manufacturing cycle
- Stability Certificate: Form 1A signed by a government-authorized Structural Engineer
Operational Data
Critical data regarding machine load and worker welfare amenities.
- Worker Strength: Maximum count of workers (categorized by gender/shift)
- HP Machine List: Inventory of machines with their individual and total motor HP ratings
- Materials Data: Details of raw materials, hazardous chemicals, and fuels used
- Welfare Provisions: Details of Ventilation, Lighting, Sanitation, and First-Aid facilities
Timeline for Factory License Registration (Plan Approval & Allotment)
The Factory License process is a multi-stage technical workflow governed by the Directorate of Industrial Health and Safety (DISH). Unlike standard commercial registrations, this requires Prior Plan Approval before the physical unit becomes operational. The end-to-end process, from architectural vetting to final license issuance, typically takes 20 to 30 working days, depending on the complexity of the manufacturing process and departmental site inspection schedules.
Layout Drafting & Vetting
We review your machinery list, HP ratings, and worker headcount. Our compliance experts vet your architectural blueprints (Site plan, Elevation, Section) to ensure they meet statutory DISH standards for ventilation, emergency exits, and worker amenities.
Stage 1: Plan Approval
The factory plans and manufacturing flowcharts are submitted to the State DISH portal. The technical committee scrutinizes the machine layout and HP slabs. Upon approval, you receive a formal **Plan Approval Letter**, allowing you to start machinery installation.
Site Inspection & Stability
A Factory Inspector visits the plant to verify the physical layout against the approved blueprints. Simultaneously, we assist in procuring the **Stability Certificate (Form 1A)** from a government-authorized Structural Engineer (Competent Person).
Stage 2: License Grant
Post a positive inspection report, the final statutory license fee is remitted via the state treasury. The official **Factory License (Registration ID)** is issued, authorizing the 'Occupier' to commence full-scale industrial manufacturing and commercial billing.
Technical Timing & Renewal Advisory:
Plan Approval is a non-negotiable prerequisite that must be obtained before machinery is bolted to the factory floor. Industrial units can secure licenses for up to 10 years by paying fees in advance. Please note that renewals must be applied for before December 31st of the expiring year to avoid work-stop orders. eFileSeva provides end-to-end technical coordination with DISH and 'Competent Persons', ensuring your unit stays 100% audit-ready and legally protected.
Process for Factory License Online Registration (Factories Act, 1948)
The Factory License process is a multi-stage technical and statutory workflow governed by the Directorate of Industrial Health and Safety (DISH). It is legally mandatory for any manufacturing unit employing 10 or more workers (with power) or 20 or more workers (without power). Unlike standard registrations, it requires prior Architectural Plan Approval before the unit becomes operational. eFileSeva manages the entire lifecycle, from layout vetting and HP calculation to the final allotment of your Registration ID and Stability Certification.
Industrial Categorization & HP Assessment
We verify your manufacturing process and employee strength to determine applicability under Section 2m(i) or 2m(ii). We calculate your Total Connected Load (Horsepower) and assess if your process falls under the 'Hazardous' category, which requires additional environmental and safety clearances.
Technical Layout & Blueprint Vetting
We compile the technical file including architectural blueprints (Site plan, elevation, and cross-sections). Our technical team vets the Machine Layout to ensure statutory compliance with worker movement space, ventilation, emergency exits, and lighting standards mandated by the State Factory Rules.
Stage 1: Factory Plan Approval
Before construction or machinery installation, we submit your plans to the DISH Portal. The technical committee reviews the manufacturing flowchart and safety provisions. Upon approval, you receive a formal Plan Approval Letter, which is a prerequisite for your industrial power and water connections.
Field Inspection & Stability Certification
A Factory Inspector conducts a physical site visit to verify that the unit is built as per the approved plans. Simultaneously, we coordinate with a 'Competent Person' (Structural Engineer) to issue the Stability Certificate (Form 1A), certifying the building's load-bearing capacity for your specific machinery.
Stage 2: License Grant & Allotment
Upon a successful inspection report, the statutory license fees are remitted via the state treasury. The Factory License (Registration Number) is digitally issued, authorizing the 'Occupier' to commence full-scale production, raw material procurement, and commercial industrial operations.
Continuous Safety & Statutory Compliance
Post-licensing, eFileSeva assists you in maintaining the Muster Roll, Accident Register (Form 12), and Lime Washing Register. We provide automated alerts for annual license renewals and coordinate periodic safety audits and worker health check-ups to keep your industrial unit 100% audit-compliant.
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Registrations & Compliances Required After Obtaining a Factory License
Securing your Factory License from the Directorate of Industrial Health and Safety (DISH) is the primary legal milestone for industrial operations. However, maintaining a compliant manufacturing unit requires ongoing adherence to the Factories Act, 1948, Industrial Safety Norms, and Environmental Laws. To protect your unit from work-stop orders, heavy compounding fines, or criminal prosecution of the 'Occupier', you must manage technical renewals, safety audits, and statutory register maintenance diligently.
| Compliance / Registration | When You May Need It | Key Benefit / Purpose |
|---|---|---|
|
License Renewal & Amendments
|
Before December 31st of the expiry year (1, 5, or 10-year cycles). | Prevents the industrial unit from being categorized as unauthorized; mandatory if there is any change in Horsepower (HP) or Worker Count. |
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Maintenance of Statutory Registers
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Ongoing Daily (Muster Roll, Wage Register, Lime Washing, Leave with Wages). | Provides legal proof of compliance during surprise inspections by Factory Inspectors; ensures transparency in worker welfare and hygiene. |
|
Unified Annual Return (Form 21)
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By January 31st of every calendar year for the preceding year. | Consolidated report submitted to the Chief Inspector regarding workers, wages, and safety; failure leads to automatic "Non-Compliant" status. |
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Stability Certificate Renewal
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Every 5 years (or as per state rules) or after structural modifications. | Certified proof from a Competent Person that the factory building is safe to withstand machine loads and industrial vibrations. |
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Accident Register (Form 12)
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Immediate maintenance upon any workplace incident. | Crucial for industrial safety audits; mandatory to report any major accident to DISH within 24 hours to avoid criminal liability. |
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Pollution Board Consent (CTO)
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Periodic Renewal before the expiry of 'Consent to Operate'. | Ensures factory emissions and waste disposal stay within environmental limits; required to prevent disconnection of industrial power. |
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Industrial social security
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Monthly for all factory workers (EPF for 20+, ESIC for 10+ staff). | Mandatory insurance and retirement benefits; protects the 'Occupier' from personal liability during worker fatalities or sickness. |
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Fire Safety Audit & NOC
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Annually for hazardous units or as per local fire department rules. | Ensures firefighting equipment is operational; mandatory for claiming industrial insurance and passing client safety audits. |
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Medical Examination Records
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Annually for workers engaged in hazardous or specialized manufacturing processes. | Statutory health monitoring required under the Act to identify occupational diseases and ensure worker fitness. |
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Professional Tax (PTEC & PTRC)
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Annual (PTEC) and Monthly (PTRC) for establishments with staff. | Statutory state tax for doing business; non-payment results in interest penalties and blocking of other government permissions. |
Licensed Factory (Factories Act Compliance) vs Unlicensed Unit: Why Industrial Safety Matters
Obtaining a mandatory Factory License under the Factories Act, 1948 is the fundamental legal requirement for any manufacturing unit employing 10 or more workers with power. While operating without a license exposes the 'Occupier' to criminal prosecution, imprisonment, and immediate plant sealing, a licensed unit ensures a scientifically approved layout, protects against industrial accident liabilities, and qualifies for bank financing. Compare the key differences below to see why DISH compliance is the backbone of a professional industrial enterprise versus a high-risk unauthorized unit.
| Feature | Licensed Factory (DISH Compliant) | Unlicensed / Unauthorized Unit |
|---|---|---|
| 1. Legal Authority to Manufacture |
Statutorily Authorized
Formally authorized by the Directorate of Industrial Health & Safety to conduct manufacturing operations. |
Unauthorized Unit
Violates Section 6 of the Factories Act; categorized as an illegal industrial workplace liable for immediate closure. |
| 2. Factory Plan Approval | Scientifically Vetted Layout: Plant layout is pre-approved for machine movement, ventilation, and emergency exits, ensuring a safe workflow. | Hazardous Setup: Lacks safety vetting; unorganized machinery placement increases the risk of fires, accidents, and structural damage. |
| 3. Liability for Accidents | Liability Shield: Following approved safety norms protects the Directors from criminal negligence claims during workplace incidents. |
Criminal Prosecution
The 'Occupier' faces jail terms up to 2 years and massive fines in case of workplace injuries or fatalities. |
| 4. Industrial Power & Water | Infrastructure Ready: Primary proof required to obtain High-Tension (HT) Power Connections and industrial water supply. | Utility Roadblocks: Unable to secure sanctioned industrial load; faces disconnection or heavy penalties for using commercial power for industry. |
| 5. Bank Loans & Finance | High Creditworthiness: Mandatory document for securing Industrial Loans, machinery financing, and CC limits from nationalized banks. | Unbankable Entity: Viewed as a high-risk informal setup; rejected for long-term project financing and institutional investment. |
| 6. Building Stability | Structural Assurance: Holds a Stability Certificate (Form 1A), proving the building is safe to withstand machine loads and vibrations. | Structural Risk: No certified proof of load-bearing capacity; faces risk of structural collapse and plant floor damage. |
| 7. Tender & Vendor Audits | Supply Chain Ready: Non-negotiable requirement for GeM registration, Govt. industrial tenders, and MNC vendor audits (CSR). | Supply Chain Blocked: Disqualified from all formal B2B contracts; cannot supply to large brands or participate in industrial auctions. |
| 8. Worker Welfare & Trust | Professional Reputation: Standardized amenities (crèche, canteen, medical) attract skilled industrial labor and reduce staff turnover. | Labour Instability: Sub-standard working conditions lead to high absenteeism, labor union strikes, and surprise labor court notices. |
| 9. Inspection & Sealing Risks | Compliance Immunity: Safe from sudden plant sealing orders as long as technical registers and safety norms are maintained. |
Work-Stop Orders
Factory Inspectors have the power to seal the premises immediately and disconnect power during unauthorized unit raids. |
| 10. Best Suited For | Manufacturing Plants, Textile Mills, Engineering Units, Labs, and Auto-component Shops aiming for scale. | Informal back-alley workshops facing constant legal anxiety and zero institutional scalability. |
Ready to Secure Your Factory License & Plan Approval?
Get expert technical guidance from eFileSeva for Factory Licensing — from architectural layout vetting and HP calculation to stability certificates and final DISH portal filings across all industrial states.
Talk to a Factory License ExpertFrequently Asked Questions
Find answers to common questions about Factory License Registration in India, including Factories Act 1948 rules, worker threshold limits (10/20 workers), Factory Plan Approval, Stability Certificates, technical inspection timelines, and license renewal processes.
- 10 or more workers: If the manufacturing process is carried out with the aid of power.
- 20 or more workers: If the manufacturing process is carried out without the aid of power.
- Technical Plans: Blueprints of the factory layout, elevation, and machine placement.
- Stability Certificate: Form 1A signed by a government-authorized structural engineer.
- Technical Data: List of machinery with total installed Horsepower (HP).
- Occupier KYC: PAN, Aadhaar, and Photo of the designated Director/Partner.
- Entity Proof: Certificate of Incorporation (COI) or Partnership Deed.
- NOCs: Fire Department NOC and Pollution Control Board (PCB) consent.
- Maximum Number of Workers: Employed on any single day during the year.
- Total Installed Horsepower (HP): Total load of all electric motors and machinery in the factory.
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Talk to the eFileSeva technical team for expert guidance on Factory Licensing (DISH) — assisting with blueprint vetting, HP assessment, stability certificates, and statutory safety audits across India.
Talk to a Factory ExpertTrusted by 5,000+ Industrial Units for Factory License in India
Textile Mills, Engineering Workshops, Chemical Plants, and Industrial Labs across India rely on eFileSeva for professional Factory License Registration — including architectural site plan approval, technical HP slab calculation, stability certificate coordination, and complete DISH (Directorate of Industrial Health & Safety) compliance.
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