What Is a Factory License & Who Needs It?
A factory license is a required license issued by the State Government to operate a factory that meets specific safety, health, and welfare requirements.
Factory License Applicability
You must obtain and update a factory license if your unit fits one of these categories:
- Employs 10 or more workers with power
- Employs 20 or more workers without power
- Falls under hazardous or chemical processing activities
- Operates as a manufacturing, assembling, packaging, or industrial processing unit
This is why the registration and annual/biennial renewal of a factory license is required.
Why Factory Licence Renewal is Required
Renewing the Factory Licence in a timely manner will help you:
- Avoid heavy penalties and legal notices
- Prevent closure of the factory or restrictions on operations of the factory
- Maintain validity for other approvals (pollution consents, GST, MSME, etc.)
- Ensure worker safety and compliance with the Factories Act
In many states it is also linked to your renewal for fire NOC, stability certificate for building, and pollution control compliance.
Documents You Will Need to Provide for Factory License Renewal (online)
While each state may require different documents or further documentation, typical documentation for all states include:
- Factory license copy (previous year)
- Form 2 or applicable renewal form
- Stability certificate from structural engineer
- Site plan / factory layout
- Updated list of machines & power load
- Details of workers (male, female, contractual)
- MOA, AOA, Partnership deed, or MSME documents
- Pollution NOC (Consent to Operate)
- Fire Safety Certificate (if applicable)
- Fee payment receipt
- Copy of factory registration certificate
For factory license renewal MP, you may also need:
- Boiler/pressure vessel safety certificate
- Safety audit report (if hazardous unit)
For MCD factory license (Delhi), additional documents may include:
- Delhi Pollution Control Committee (DPCC) approvals
- Trade license from MCD/NDMC
Step-by-Step Guidelines to Renew your Factory License Online
Each state has its portal, but process is generally the same:
1. Visit the State Factory Licensing Portal
Examples:
- MP: Vidyut Suraksha Portal / MP Labour Department
- Delhi: MCD Unified Licensing Portal
- Uttar Pradesh: Nivesh Mitra
- Maharashtra: MAITRI Portal
2. Login or Create an Account
Use your registered email, phone number, or factory ID.
3. Select “Factory License Renewal”
Choose the renewal option under the Labour/Factories Department section.
4. Fill in the Online Application Form
Provide details such as:
- Factory name
- Manager and occupier details
- Number of workers
- Installed power load
- Manufacturing activities
5. Upload Required Documents
Scan and upload all mandatory documents in PDF/JPEG format.
6. Pay the Renewal Fee Online
You can pay through Net banking, UPI, or debit/credit card.
7. Verification by Inspector / Government Authority
The Factory Inspector reviews your documents and may conduct an inspection if required.
8. Download the Renewed Factory License
Once approved, you can download the certificate directly from the portal.
Renewal of Factory License MP (Madhya Pradesh)
The MP Labour Department provides 100% online process for renewal.
Key highlights:
- Renewal via MP Labour e-portal
- Pay-slip is auto-calculated based on worker count & category
- Digital verification, no physical submission needed
- The license is typically renewed in 7 – 15 days.
MCD Factory License (Delhi) Renewal
Delhi-based factories fall under the jurisdiction of MCD or NDMC.
Key points to note:
- You can apply on MCD Unified Licensing Portal.
- DPCC Certificate is compulsory for most manufacturing units.
- Fire NOC required for units above respective size/capacity.
- There could be a schedule for inspection prior to accepting a application for approval.
Expert Tips to Smoothly Renew your Factory Licence
Here are tips to avoid the delay or rejection in the processing:
✔ Keep Your Documents Updated
Most rejections are due to expired stability certificates, expired NOC and wrong worker details.
✔ Apply at Least 30 Days Before Expiry
Most states advise 1-month lead time before expired.
✔ Check Your State’s Factory Rules
Each state has their own set of rules (i.e, MP, Delhi (MCD) Factories, Maharashtra, UP, Karnataka)
✔ Maintain Compliance Records
Updated accident records, a health register, safety drill records, and machinery should have maintenance records.
✔ Seek Professional Assistance
Regulatory experts give you the opportunity to avoid errors in the filing which would cause rejection.
Final Thought
The renewal of factory licences is more than merely a compliance requirement— it offers peace of mind, safety, legitimacy and continuity to your industrial unit. Even with the advent of digital portals and factory licence renewal online, much of the process has become quicker and easier, the importance of accurate information and timely filing still holds true. Therefore, whether you are renewing a factory licence in the State of MP, applying for an MCD factory licence, or simply ensuring general compliance, being in the know about state requirements can eliminate potential costly fines and fees, and ultimately lead for smoother sailing.
