Factory Licence in Haryana — Plan Approval, Licence & Renewal
A factory licence is the Labour Department’s permission to run a manufacturing unit. In Haryana it is applied for online in Form No. 2 on hrylabour.gov.in, after the factory building plan is approved. The licence runs for one year or five years, so renewal is part of the job.
What it is
A factory licence is the written permission a manufacturing unit needs before it starts production. No licence, no lawful production.
The law behind it is the Factories Act, 1948. Section 6 lets the State Government make rules for submitting factory plans, getting previous permission for the site and for construction or extension, and for registering and licensing factories. In Haryana, the Labour Department runs all of it online on hrylabour.gov.in. The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) came into force on 21 November 2025 and will take over from this system in phases. We explain where that stands below.
Who it applies to
Count 10 workers if you use power
Under Section 2(m) of the Factories Act, premises are a factory if a manufacturing process runs there with the aid of power and 10 or more workers are working, or were working on any day of the preceding twelve months.
Count 20 workers if you don’t
Without power, the limit is 20 workers. Seasonal hands count too: the test looks back twelve months, not just at today’s muster roll.
Building or extending a shed? Start here
Plan approval comes first. A new shed, an extra floor, a move to bigger premises: the drawings go to the Labour Department before construction starts.
Why it matters
Run production without legal risk
Running a factory without a licence is a contravention of the Factories Act, punishable under Section 92. A valid licence takes that risk off the table.
Let buyers and banks verify you
Buyers and lenders often ask for the factory licence during vendor onboarding and loan appraisal. The Haryana portal has a “Verify License Details” option, so they can check it themselves.
Get the building right from day one
Plan approval puts your drawings and process flow in front of the department before a single wall goes up. Redrawing a line on paper is cheap. Breaking a built wall is not.
Factories Act vs OSH Code at a glance
| Factories Act, 1948 | OSH Code, 2020 | |
|---|---|---|
| When a unit is a “factory” (with power) | 10 or more workers | 20 or more workers |
| When a unit is a “factory” (without power) | 20 or more workers | 40 or more workers |
| Registration | Registration and licence under rules made under Section 6 | Electronic registration under Section 3, within 60 days of the Code applying |
| Licence | Factory licence (Form No. 2 in Haryana) | Common licence under Section 119 |
| Status in Haryana | Continues on hrylabour.gov.in during the transition | In force from 21 November 2025; Haryana rules awaited |
The Government of India’s announcement of 21 November 2025 said that during the transition, the relevant provisions of the existing labour Acts and their rules, regulations and notifications continue in force. Haryana’s notification of 4 May 2026 on shop registration refers to registration under the OSH Code once the Haryana rules are finalised. Until then, the Factories Act process on hrylabour.gov.in carries on under the transition arrangement.
Here is the catch. Picture a Faridabad sheet-metal unit running power presses with eight workers. A festive-season order comes in and it hires six more. At 14 workers it is a factory under the Factories Act, but it would not be one under the Code’s 20-worker limit. If you sit between the two numbers, talk to us before deciding you are exempt.
Documents required
For plan approval
- Flow chart of the manufacturing process
- Site plan of the factory and its surroundings
- Plans, elevations and cross-sections of each building
- Hard copies of the drawings, by hand or courier
For the licence
- Approved factory building plan
- Proof of ownership or lease of the premises
- Details of the occupier and the factory manager
- Installed power and list of main machinery
- Number of workers, by shift
From the business
- PAN and incorporation or registration certificate
- Board resolution or authorisation naming the occupier
- GST registration, if already obtained
- An operational email ID for the portal login
How it works
Create your login and fill the BIP
We create your login on hrylabour.gov.in with an operational email ID and complete the Basic Information Performa (BIP) for the factory.
Get the factory building plan approved
Under the “Factory Building Plan” option we file Form 1, Form 1A and Form 1B, upload the process flow chart and site plan, and send the hard-copy drawings to the department. Say you have bought a plot in a Faridabad industrial area and plan a two-storey shed. This is where the project starts, alongside the fire approval if the building needs one.
Send the Section 7 notice
We draft the occupier’s written notice to the Chief Inspector, due at least 15 days before the premises are used as a factory.
Apply for the licence in Form No. 2
We file Form No. 2, choose a one-year or five-year term, pay the fee the portal calculates, and add worker details. Keep these worker details consistent with your payroll and labour-law compliance records.
Answer queries and download the licence
We reply to scrutiny observations on the portal. Once the licence is approved, the certificate is downloaded online and the renewal date goes straight into our diary.
Timelines
Send notice 15 days before production
The Section 7 notice reaches the Chief Inspector at least 15 days before you begin to occupy or use the premises as a factory.
Expect a plan decision within three months
Under Section 6(2), if no order is communicated within three months of an application for permission, it is deemed granted. A refusal can be appealed within 30 days under Section 6(3).
Renew every one or five years
Haryana lets you take the licence for one year or five years. In practice, the five-year term saves four renewal rounds over five years. Renew before expiry: the portal charges a fine for delay in the fee or application.
What happens if you run without a licence
Face prosecution under Section 92
The general penalty is imprisonment of up to two years, a fine of up to ₹1 lakh, or both. If the contravention continues after conviction, a further fine of up to ₹1,000 a day can follow.
Pay a fine for late renewal
Haryana’s Labour Department charges a fine when the licence fee or application is delayed. A renewal filed on time costs only the normal fee.
Lose time with buyers and lenders
An expired or missing licence shows up in vendor audits and bank appraisals. Think of a Faridabad auto-component supplier whose customer audit lands the week its licence lapsed. The purchase order waits until the paperwork is fixed.
Frequently asked questions
How many workers make a unit a factory that needs a licence?
Under Section 2(m) of the Factories Act, 1948, it is 10 or more workers where power is used, or 20 or more where it is not. Anyone who worked on any day of the preceding twelve months is counted, so a seasonal peak matters. The OSH Code raises these limits to 20 and 40, but the Factories Act process continues in Haryana during the transition. Close to the line? We check your headcount with you before you apply.
Do I need plan approval before building the factory?
Yes. Section 6 of the Factories Act lets the State require plans to be submitted, and previous permission for the site and for construction or extension. In Haryana you file Form 1, Form 1A and Form 1B under the “Factory Building Plan” option on hrylabour.gov.in, with the process flow chart, site plan and building drawings. Get this done before construction and the licence stage is far simpler.
What if the department does not reply to my plan application?
Under Section 6(2), if no order is communicated within three months of applying for permission for the site, construction or extension, the permission is deemed granted. If the application is refused, Section 6(3) allows an appeal within 30 days of the refusal. The portal lets you answer scrutiny observations online. We track each one and reply quickly, so your file keeps moving.
How long is a factory licence valid in Haryana?
You can take a factory licence in Haryana for one year or for five years. The fee is calculated automatically for the period you choose. The five-year option means fewer renewals and fewer chances of a lapse. Whichever you pick, we diarise the expiry date and start the renewal early, because the department charges a fine for delay in the fee or application.
What is the government fee for a factory licence?
The fee is calculated automatically by the hrylabour.gov.in portal from the details in your Form No. 2 application and the licence period you select. It is paid online by debit or credit card or through eGRAS, or offline by treasury challan. We show you the exact portal amount before anything is paid.
Has the OSH Code replaced the Factories Act?
The OSH Code came into force on 21 November 2025 and merges 13 laws, including the Factories Act, 1948. But the Government’s announcement said the relevant provisions of the old Acts and their rules continue during the transition. Haryana’s May 2026 notification links OSH Code registration to its state rules being finalised. Until then, the Factories Act process continues, and we track the switch for you.
Will I need a new registration under the OSH Code?
Section 3 of the OSH Code requires establishments to register electronically within 60 days of the Code applying to them. Section 3(8) treats an establishment already registered under an earlier central labour law as deemed registered under the Code, subject to conditions. Factories will also move to a common licence under Section 119 once the rules are in place. We will tell you what to file, and when, as Haryana finalises its rules.
What notice must I give before starting production?
Section 7 of the Factories Act requires the occupier to send a written notice to the Chief Inspector at least 15 days before beginning to occupy or use the premises as a factory. Skipping it is a contravention in its own right. We build the notice into your start-up calendar, so the first production day is not held up.
Does my factory also need a fire NOC?
Yes, if the building crosses the size limits. Under Section 18 of the Haryana Fire and Emergency Services Act, 2022, industrial buildings with floor area of more than 500 square metres on any floor need fire fighting scheme approval before construction, and a fire safety certificate afterwards. The two approvals run side by side with factory plan approval. We line up the timelines so one does not hold up the other.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
The government licence fee is worked out by the Labour Department portal from your application and the licence period you choose. A fine applies if the fee or application is late.
Ready to begin?
Send us your site plan and headcount, and we will map out plan approval, licence and renewal for your Haryana factory.