Dear All,
Ours is a manufacturing factory employing around 180 employees.
We got all the licenses and registration certificates essential for running the factory except Factory License.
We have applied for Factory License for 250 employees & paid the requisite fees but due to some changes in approved plan of the factory,
we did not get factory license yet. The Industrial Safety & Health department issued us a certificate regarding
the same & mentioned that the license is in process. We have started manufacturing on that basis for the last
6 months.
I just wanted to know, can we produce goods though we did not get any factory license, but we will surely get it
since we have done all the formalities required to obtain the same.

From India, Nasik
Hr Consultant
+1 Other


If no licence is issued within two month from the date of application in the office of the Chief Inspector of Factories, I think there is deeming provisions , if no objection are received or no licence is granted , it is deemed granted. .Please the Factories of your State.
RL Dhingra ,Advocate,
Labour law Consultant,Delhi
09818309937 E-mail:

From India, Delhi

Hello Parag,

No worries. As rightly mentioned by Mr. Dhingra, the licence is deemed to have been granted if no objections are received within 2 month's from the date of submission. However, you need to preserve the challan copy (for the licence fees) and the acknowledgment copy of the form 3 (Application for Licence/Renewal of License of a Factory) with you so that you have the proof regarding the timely submission and payment of fees.

I know of some small & medium sized establishments in places like Nagpur, Aurangabad, Daman, Vapi, etc where the factory licence have not been given by the respective Inspector of Factories since some years as these establishments have not agreed to the inspector's demand (which is in 6 digits) and have stayed adamant in tune to their company's ethics policy (a few of them also have the "anti-bribery and anti-corruption" policy guidelines with them). In such a scenario, the challan copy indicating the payment of the factory licence fees and the acknowledgement copy of the application (form 3) for submission have been maintained by these victimised establishments. And with this, they have been existing for quite a few years now (One such establishment in Nagpur has not been given the Factory licence (For 4) since 2011 as I have been told).

However, it's also important that you try and adhere to the requirements under the Factories Act irrespective of the fact that the original licence copy is not been handed to you by the respective body.



From India, Mumbai

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