Factory Licence is mandated by the Factories Act, 1948 to ensure that a factory complies with the stipulated rules and safety guidelines. Upon registering a factory, the Government issues a factory license. This factory license is a document of authorisation for granting permission to regulate and carry out manufacturing pursuits from a particular locality. Factories in which ten or more workers are employed with the aid of power for the manufacturing process and factories and factories, which are engaging twenty or more workers without using power in the manufacturing process, need to be registered in under the Factories Act, 1948.
Any entrepreneur who wishes to reconstruct, construct, extend or to take any building as a factory needs to get plan approval and permission. After the construction of the factory, the factory owner or the manager has to register the factory under the Delhi factories act, 1948.