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Factory Licensing

Factory Licence Requirements: What Industrial Promoters Should Check

Whether the establishment falls under the factory framework, and what the application involves.

Published October 2026 · Reviewed by Credvalue Financial Services · General information, not project-specific advice

A manufacturing premises that meets the worker-strength and power-use thresholds in the applicable legislation needs a factory licence before it operates. Establishments below the threshold may fall under other registrations. The first check is which framework applies to the specific establishment under the law currently in force.

Plan approval

For new factories, approval of the building plan and machinery layout from the factory authority precedes construction or installation. Seeking it after the building is up can require changes that could have been designed in.

The application

It covers the occupier and manager, the process, the machinery and power, the worker strength and shifts, the building's structural stability, and the safety, health and welfare provisions the law requires for that size and process. A stability certificate from a competent person is a standard requirement.

Renewal and change

Licences are renewed periodically and must be amended on change of occupier, capacity or layout. A lapsed licence surfaces at bank or department inspections and at claim stage.

Changing law

Labour-code reforms may alter thresholds, procedures and the responsible authority. We confirm the current requirements for each establishment rather than relying on last year's understanding.

Official references

Official portals and notifications are the authority on current conditions. Links are provided for reference and may change.

Credvalue Financial Services provides project finance, documentation, government incentive advisory, and assistance with applicable industrial regulatory approvals. Scheme eligibility, incentive amounts, loan sanctions, regulatory permissions, and claim outcomes depend on applicable laws, policy conditions, departmental decisions, and lender assessment. Website information is for general informational purposes and does not guarantee approval, subsidy, financing, or a particular processing timeline. Official notifications, applicable laws and department-issued requirements prevail over any summary on this website.

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