Factory License in Telangana – Application & Compliance Guide

If you want to run a factory in Telangana you must get a Factory License under the Factories Act 1948. This license is not optional. It’s a legal approval that ensures your factory is safe and follows all rules. In 2025 this license is more important than ever due to growing safety and labour standards in India

Let’s explore how to register for a factory license in Telangana, the process, documents and what you need to know to stay compliant

In Telangana, any factory that meets the following conditions must get a license:

• If they use power and have 10 or more workers, or
• Does not use power and has 20 or more workers

If you fit into either group then you need to apply for a license before starting operations
 

It is a license that is given by the Labour Department of Telangana under the Factories Act 1948. The Chief Inspector of Factories is the authority that is mandated with the duty of issuing approvals on premises as well as premises inspection and verification of compliance

There is a legal framework put in place that workers do not get hurt and the premises is stable and there is fit pollution or safety hazards

Before applying, collect the following documents:

• Factory layout/site plan approved by a certified structural engineer
• Form 2 – Application for license
• Partnership deed or Company incorporation certificate
• Address proof and ID of the occupier
• Power connection certificate from electricity board
• Stability certificate from a competent engineer
• Proof of ownership or lease deed
• Consent from Pollution Control Board (if applicable)
• Details of hazardous processes (if applicable)
• Workers’ details, including number of employees and their shifts
• Proof of fee payment

All files must be in PDF or scanned format

Before you apply for a factory license in Telangana, you must get approval of your building plan. This is done by submitting your layout to the Factory Inspectorate through the Directorate of Factories online portal.

The layout plan should include:

• Factory building structure
• Machinery placement
• Emergency exits
• Worker amenities (restrooms, canteen drinking water)
• Electrical setup

A licensed civil engineer or architect must sign the plan 

Here’s how to register for a factory license in Telangana:

1. Create an account on the online portal of Labour Department
2. Fill out Form 2 (factory license application)
3. Upload all required documents in prescribed format
4. Pay the applicable fee through e-payment
5. Submit the application
6. Await inspection by the Factory Inspector
7. If everything is correct, license approval is issued

The license is usually issued within 30 working days depending on your readiness and document clarity

Once your documents are submitted, the local inspector will visit your premises. The purpose of the visit is to:

• Check safety measures and emergency exits
• Verify number of workers and machinery
• Inspect lighting, sanitation and ventilation
• Check fire protection and exits
• Confirm layout matches submitted plan

If all goes well, your license is issued without delay.
 

The license fee depends on:

• Number of workers
• Total horsepower used
• Type of industry (hazardous or non-hazardous)
• Number of years you apply for

Here’s a rough estimate:

Worker Count/p>	Approx. License Fee/p>
Up to 20	₹1,000 – ₹3,000
21 – 50	₹3,500 – ₹6,000
51 – 100	₹6,500 – ₹10,000
>100+ workers	₹10,000+

Factory licenses in Telangana are valid for 1 year, 3 years, or 5 years, based on the application. It’s better to apply for a longer term to avoid yearly renewal work.

To renew your license:

1. Login to the factory portal
2. Choose “Renew License” option
3. Update details (if any)
4. Upload fresh documents (if needed)
5. Pay the renewal fee
6. Wait for approval

Non-compliance with the Factory Act can lead to:

• ₹1,000 to ₹1,00,000 penalties depending on the offense
• Daily fines for continued violations
• Legal notice and business closure
• Worker compensation claims if safety is ignored

The Labour Department conducts regular inspections. So it is better to stay compliant than risk your factory’s future.
 

Here’s why you should get a factory license:

• You run a legal business
• Gain trust of suppliers, clients, and lenders
• Reduce risk of shutdowns and fines
• Access state schemes for manufacturers
• Help protect your workers’ safety and rights
• Enable smooth expansion and loan approvals

It also creates a record with the government, which helps in applying for pollution NOCs, fire safety, labour returns, and more.

Do not leave it to the last minute. One can start legal production by obtaining a factory license in Telangana. Begin your quest with the right people.

Contact Agile Regulatory today to be assisted by professionals to establish, register and expand your factory business with assurance.