Key Takeaways

• Factory Licenses are renewed through the state labour or factories department, so forms, fees, and dates vary by state.
• The OSH Code, 2020 came into force on 21 November 2025 and repealed the Factories Act, 1948. Existing Licenses and state factory rules continue under the savings provisions to the extent they aren’t inconsistent with the Code, until they’re repealed or replaced under the new framework.
• Delhi’s Labour Department shows how renewal works in practice. It uses online filing, a fee based on horsepower and workers, a 25% late fee, and a choice of one, five or ten years.
• Start early, keep your paperwork current and check your state’s latest rules before you file.

What Is a Factory License, and Why Does It Need to Be Renewed?

A factory License is the state’s permission to run your premises as a factory. Under the old Factories Act, the state’s Chief Inspector of Factories granted it, and the state factories rules required periodic renewal.

Renewal keeps that permission current. Delhi’s Labour Department says a License granted under the Delhi Factories Rules, 1950 must be renewed under Rule 7. It also describes running a factory without a License as a punishable offence.

Here’s the part many owners miss. On 21 November 2025, the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) came into force, and the Factories Act, 1948 was repealed from that date. Existing Licenses and state rules weren’t switched off, though. The Code’s savings provisions continue existing rules, Licenses and actions to the extent they aren’t inconsistent with the Code, until they’re repealed or replaced under the new framework. So factory License renewal today usually still follows your state’s existing procedure, but it’s worth confirming how your state is applying the Code.

Who Needs to Renew a Factory License?

Every factory license renewal begins with the occupier. In Delhi, the applicant must be the occupier, meaning the proprietor, partner, director or nominated officer. An application from anyone else is rejected, and the fee is forfeited.

Whether your unit counts as a factory depends on its size. The Factories Act sets the line at 10 or more workers with power or 20 or more without. The OSH Code raises it to 20 or more with power and 40 or more without. Check your state’s position, because state rules matter here.

Factory License renewal India-wide follows one pattern. The Centre makes the law, but the state department handles applications and fees.

When Should a Factory License Be Renewed?

The factory License renewal deadline depends on your state and on how your License was issued. Delhi gives a clear example:

• Manually granted Licenses: These expire on 31 December of the calendar year up to which they were granted or renewed. A late fee applies if the application comes in after 30 November.
• Online-granted Licenses: The late fee applies if the application is filed less than 30 days before expiry.

Delhi’s renewal FAQ also mentions a 60-day lead time, so planning well ahead is the safest approach. Other states set their own cut-offs, so check your state’s rules.

My advice? Put the expiry date in your compliance calendar at least 90 days out. A calendar reminder costs nothing. A late fee doesn’t.

Documents Required for Factory License Renewal

Factory License renewal documents depend on your state and on whether your License was granted online or manually. Factory license renewal requirements in Delhi mostly cover identity, unit ownership, and what the factory does.

For a manually granted License, Delhi’s Labour Department lists these uploads:

• Online service specification form and fee
• ID proof of occupier and manager
• List of partners or directors with residential addresses
• NOC from other partners, or a Board Resolution, nominating the occupier
• Proof that the occupier is a director, partner or proprietor
• Existing building plan in PDF format
• Latest electricity bill as proof of sanctioned load
• Proof of occupancy (rent agreement or ownership proof)
• Flow chart of the manufacturing process
• List of raw materials used
• List of machinery installed
• Any other documents the department asks for online

If your License was granted online, it’s simpler. You log in, enter the FD number of the existing License and pay the auto-calculated fee. Only the manager’s details can be entered at renewal.

Industry guidance also notes that renewal applications in many states ask for updated worker and machinery details, along with valid stability, fire safety, and electrical safety certificates. Check your state’s list before you file.

Factory License Renewal Process in India

Factory License renewal online is now the norm in many places. Delhi, for instance, has mandated that renewal of factory Licenses be filed only through the e-District portal and the Delhi Single Window System, and offline submissions are no longer accepted.

Here’s how a factory license renewal runs on Delhi’s e-District portal:

1. Check your License type. Note whether it was granted online or manually, and when it expires.
2. Log in. If your License was granted manually, register first through the Citizen Registration Form on the portal.
3. Select the service. Choose “Renewal of License under the Factories Act, 1948” and fill in the service specification details.
4. Add your details. Enter the FD number for an online License, or upload the documents listed above for a manual one.
5. Choose the term and pay. Pick one, five or ten years. The system calculates the fee, including any late fee, and you pay online.
6. Wait for scrutiny. If your application is complete, Delhi says the License is renewed within 60 days and can be downloaded from your dashboard.

Other states use their own portals and forms. The steps look similar, but always follow your state department’s current instructions.

Factory License Renewal Fees and Charges

Budgeting for factory license renewal is simpler once you know what drives the fee. Factory License renewal fees are set by the state. In Delhi, the fee follows a schedule under the Delhi Factories Rules, 1950, based on installed horsepower and the maximum number of workers on any day, and the portal calculates it for you.

Installed H.P.	Up to 20 workers	21 to 50	51 to 100	101 to 250	251 to 500	501 to 750	751 to 1000	Above 1000
Nil	Rs 100	Rs 200	Rs 400	Rs 1,000	Rs 1,600	Rs 3,000	Rs 4,000	Rs 5,000
Up to 10	Rs 200	Rs 400	Rs 480	Rs 1,200	Rs 2,400	Rs 3,600	Rs 4,800	Rs 6,000
Above 10 and up to 50	Rs 400	Rs 600	Rs 800	Rs 2,000	Rs 4,000	Rs 6,000	Rs 8,000	Rs 10,000
Above 50 and up to 100	Rs 800	Rs 1,000	Rs 1,200	Rs 3,000	Rs 6,000	Rs 9,000	Rs 12,000	Rs 15,000
Above 100	Rs 1,200	Rs 1,600	Rs 2,000	Rs 4,000	Rs 8,000	Rs 12,000	Rs 16,000	Rs 20,000

Note: Delhi fee schedule (Delhi Factories Rules, 1950). Other states have their own schedules.

Factory License renewal charges go beyond that base fee. If you renew for five or ten years, the fee is five or ten times the one-year amount. A late fee of 25% of the fee payable for a calendar year applies if you miss the cut-off.

Factory License Validity After Renewal

Factory License validity depends on your state and the term you choose. In Delhi, you can renew for one, five or ten years at a time, and the term is picked in the application.

Factory License validity also decides your next renewal date. Note it down the day the renewed License arrives.

What about Licenses issued before the OSH Code? A License valid on 21 November 2025 doesn’t become invalid automatically.  Under the Code’s savings provisions, it continues to the extent it isn’t inconsistent with the Code, until it’s repealed or replaced under the new framework. Validity periods differ in other states, so check the certificate itself and your state department’s latest instructions.

Common Factory License Renewal Mistakes to Avoid

Most delays in factory license renewal trace back to a few avoidable slips:

• Waiting for the last week. In Delhi, filing after the cut-off adds a 25% late fee.
• Uploading incomplete factory License renewal documents. Delhi renews complete applications within 60 days. Gaps slow that down.
• Assuming details can change at renewal. In Delhi, only manager details can be entered. Other changes need a separate amendment application.
• Applying as the wrong person. Only the occupier can apply in Delhi.
• Ignoring factory License renewal charges in the budget. Late fees and multi-year fees change the total.
• Skipping your state’s factory License renewal requirements. Rules differ by state, and many are in transition under the OSH Code.

What to Do After Factory License Renewal?

Once your factory license renewal is approved, don’t file it away and forget it. A few quick steps help:

• Download and check the License. In Delhi, a digitally signed License is available on your dashboard, not sent by post.
• Diarise the next date. Set a reminder based on the validity you chose.
• Share it internally. HR, EHS and plant management should all know the validity and any conditions.
• Amend when things change. If you change the factory name or the number of persons employed, apply for an amendment. For example, Puducherry’s labour department says these can’t change unless the Chief Inspector amends the License.
• Surrender if you close or shift. Delhi requires you to surrender the License if the factory closes or moves out of the territory.

Factory License Compliance Requirements After Renewal

Renewal isn’t the finish line. Here’s what to keep an eye on:

• Your state’s rules. Existing state factories rules continue to apply under the OSH Code’s savings provisions, to the extent they aren’t inconsistent with the Code, until they’re repealed or replaced under the new framework. Some states have moved faster than others, so confirm where yours stands.
• Central OSH rules. The OSH (Central) Rules, 2026 were notified on 8 May 2026 and apply to central-sphere establishments.
• Safety certificates. Keep stability, fire and electrical safety certificates current, since many states ask for them at renewal.
• Transition notices. Watch for your state’s process for moving from the old License to OSH registration and licensing.

Wondering whether your unit is covered or which rules apply in your state? comply360° offers factory compliance and registration and licenses services through offices across India, so you don’t have to track state notifications alone.

Conclusion

Factory license renewal doesn’t have to be stressful. Know your expiry date, gather your documents early, file through your state portal and keep an eye on the OSH Code transition.

Factory License renewal across India depends on your state’s rules, so confirm them before you file. Is your next renewal date already in your calendar?

Frequently Asked Questions

How often does a factory License need to be renewed?

It depends on the state and the term chosen. In Delhi, you can renew for one, five or ten years at a time. For manually granted Licenses, the expiry is 31 December of the year up to which the License was granted or renewed.

What documents are required for factory License renewal?

In Delhi, a manually granted License needs the service specification form, fee, ID proofs, partner or director details, an NOC or Board Resolution for the occupier, ownership proof, building plan, electricity bill, occupancy proof, a manufacturing flow chart and lists of raw materials and machinery. Online-granted Licenses need the FD number and the fee. Other states differ.

What happens if a factory License expires before renewal?

In Delhi, a 25% late fee applies if you miss the renewal cut-off, and the department treats running a factory without a License as a punishable offence. If your License has already expired, contact your state factories or labour department straight away.

Can factory details be changed during renewal?

Not usually. In Delhi, only the manager’s details can be entered at renewal, and amendments need a separate application. If your state follows a similar approach, plan to file an amendment before or after renewal.

How long does factory License renewal take?

In Delhi, a complete online application is renewed within 60 days. Timelines elsewhere depend on the state and on whether an inspection is needed.