The registration and licensing of factories in the state are governed by the Factories Act, 1948, which aims to ensure the safety, health, and welfare of workers within factory premises. The Act seeks to prevent accidents and occupational hazards, creating a work environment where every individual can perform their duties without fear. It also focuses on addressing worker grievances, eliminating occupational diseases, and preventing industrial disasters.
Before starting any manufacturing or industrial operation in India, every entrepreneur must ensure that their unit is legally recognized as a factory. Two key requirements under the Factories Act, 1948 make this possible — Factory Registration and Factory Licence, applied online vide a common application form well before the occupier begins to occupy or use any premises of the factory.
What Is a “Factory” Under the Act:
“Factory” means any premises including the precincts thereof
(i) Ten or more workers are working where a manufacturing process is being carried on with the aid of power.
(ii) Twenty or more workers are working where a manufacturing process is being carried on without the aid of power.
(iii) Wherein some specific manufacturing processes are carried on by employing less than ten workers, if working with the aid of power and less than twenty workers, if working without the aid of power.
Objectives of the Factories Act:
The Factories Act, 1948 was enacted to regulate:
For entrepreneurs, the Act is not merely a compliance requirement — it is a framework to promote safe, efficient, and ethical production practices.
The act of formally notifying the authorities about the establishment of a new factory. It is a mandatory step required before commencing any business activities. Factory Registration is the next step once the Factory Plan is approved by the concerned department.
Once the factory premises are registered and approved, the next step is Factory Licence. A Factory Licence is an operational permit granted by the State Government through the Labour Department. It authorises the occupier to commence and continue manufacturing operations within the registered premises.
Purpose of Factory Licence:
In West Bengal, the Directorate of Factories under the Labour Department manages factory registration and licensing.
Labour Codes:
The Government of India has consolidated 29 central labour laws into the following four Labour Codes:
The Factory Registration & License is the backbone of India’s industrial compliance framework. Factory Registration provides legal identity, while a Factory Licence grants operational permission. Together, they reflect an entrepreneur’s commitment to safety, legality, and responsible business practices.
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