Every factory owner must register their premises with municipal authorities before launching a business, according to the Factory Act of 1948. A factory license is a document that allows you to carry out manufacturing activities with the approval of authorities.

According to the Factories Act of 1948, a factory must receive clearance from the labour and employment department for its building plan before applying for factory registration. Factory license registration and renewal are also done under this statute to protect worker safety.

BENEFITS
•    It is a municipal approval for conducting business.
•    Will assist in the application of other licenses
•    It is one of the most crucial licenses for factory operations.
•    Protect yourself against the penalties imposed by the Factory Act of 1948.

PENALTIES
Running a "factory" without a license is illegal under the Factories Act of 1948, and granting a license is a penalty (One Lakh fine or Two Years imprisonment or both as per section 92 of the Factories Act, 1948).

CRITERIA FOR ELIGIBILITY
Factories employing ten or more workers with the use of electricity in the manufacturing process, as well as factories employing twenty or more workers without the use of power in the manufacturing process, must be registered in Delhi under the Factories Act, 1948.

VALIDITY FOR FACTORY LICENSE
Factory license issued under Factories act, 1948 is valid up to 31 December of the year in which it has been granted. A factory's license can be renewed for one year or five years. If you want to renew your license for another five years, you must pay five times the amount.