Factory License

Factory License

Factory License Renewal under the factories act 1948

calendar01 Apr, 2022
timeReading Time: 2 Minutes
factory licence renewal

The Indian Government has enacted the Factories Act of 1948[1] to safeguard workers and affirm that factory owners give their workers a safe, healthy, and sound environment for work. This Act mandates that the factory owners have registered their properties with the appropriate authority. 

Factory Licence 

Factory Licence is for the benefit of all employees working at such places. It gives safety to them. It provides all the legal benefits provided by the Government to the factory owner depending on the scheme they have chosen. Salary, health, safety, number of working hours, and workers’ work conditions are looked upon, especially of the women workers. Even the leave, hiring, and firing of workers are also taken care of under a factory licence. It ensures that every employee gets equal treatment, gives them beneficial rights and enhances their productivity. It makes sure that no one is underpaid or exploited by their employers. 

It is mandatory to obtain a factory licence as it makes sure that the owners and their employees take care of all the issues very well.

Factory Licence renewal 

If the Licence gets expires, its renewal is a mandatory requirement. As per the RTS notification, the factory licence renewal takes a maximum of 60 days. Such renewal is also done through the online portal. The factory licence renewal can be done for one year, five years or ten years.

An application of renewal should be made to the directorate 30 days before the due date of the expiry of said Licence. In case the application for factory licence renewal is not submitted on time, a late fee with the rate of 25% of the requisite fee.  

Document required renewal of Factory Licence. 

  • Application in Form no. 2
  • Deposition of the licence fee
  • Old Licence

Documents required for online renewal:

  • Name and address of the factory, other details if needed
  • Total number of workers 
  • Details of the land 
  • Brief of the manufacturing process
  • Details of the landowner
  • Details of the occupier 
  • Details of the manager or CEO

The procedure of the renewal of Factory Licence

  • File and submit Form no. 2 online for renewal of Licence 
  • Deposit requisite fees through an online payment gateway
  • Scrutiny and review of the application by the appropriate authority
  • Renewal of factory licence  


The Factory Licence is mandatory for the employees working at factories. It takes care of every factor which is related to the workers in the factory, such as health, wages, hiring, leaves, etc. This Licence is granted by the appropriate authority as per the Factories Act, 1948. The Factory Licence renewal is mandatorily required by the person who holds it. For such renewal, one has to follow particular guidelines which are provided by the appropriate authority. Renewal should be done within time so that one would not have to pay the penalty fee. 

Read our Article:Registration and Licensing of Factories under Factories Act, 1948

Shambhavi Suyesha

Shambhavi holds a strong legal background, having completed her BA LLB and LLM. She is particularly interested in legal research and writing, and wishes to utilise her knowledge to create informative legal content. She is an analytical researcher and keeps herself updated about the current legal affairs. She also holds prior experience in publishing articles on assorted legal areas.

Factory License

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