Are you planning to start a manufacturing unit in Chennai or anywhere in Tamil Nadu? If yes, obtaining a Factory Registration Certificate (popularly known as a Factory Licence) is a mandatory legal requirement.
This certificate is issued by the Directorate of Industrial Safety & Health (DISH), Tamil Nadu under the Factories Act, 1948. It confirms that your unit complies with safety, health, and welfare standards for employees.
Operating without this approval can lead to:
- Fines up to ₹1,00,000
- Daily penalties until compliance is restored
- Closure orders from the labour inspectorate
- Even criminal prosecution of the occupier and manager
👉 This detailed 2025 guide explains everything Chennai employers need to know about registration, renewal, documents, fees, penalties, and compliance practices.
A Factory Licence, sometimes called a Factory Registration Certificate or Industrial Permit, is an official document from DISH Tamil Nadu that confirms:
- Your factory meets worker safety, health, and welfare norms
- The building layout and machinery plan have been approved
- The unit is legally authorized to carry out manufacturing activities
📌 Governing Law: Factories Act, 1948 & Tamil Nadu Factory Rules.
You must apply for this registration if your unit:
- Employs 10 or more workers with power, or 20+ workers without power
- Operates in industrial zones like Guindy, Ambattur, Oragadam, Maraimalai Nagar, Sriperumbudur
- Is engaged in sectors such as automobiles, textiles, chemicals, engineering, food processing, electronics, plastics, or pharmaceuticals
👉 Even small-scale factories must register once they meet these thresholds. Many startups wrongly assume they are exempt—this mistake can result in large fines.
Getting approval involves multiple steps. Here’s the process flow for 2025:
✅ Step 1 – Plan Approval
Before operations begin, employers must get:
- Factory building layout approval
- Machinery plan & stability certificate
- NOCs from the Fire Department and Tamil Nadu Pollution Control Board
✅ Step 2 – Online Application
- Register on the DISH TN portal
- Submit factory and employer details
✅ Step 3 – Upload Required Documents
- Partnership Deed / MOA & AOA
- PAN, GST registration, and address proof
- Worker details (name, designation, wages, shifts)
✅ Step 4 – Pay Govt. Fees
- Fees are based on worker strength and installed horsepower (HP)
✅ Step 5 – Inspector Verification
- DISH inspector may conduct a site visit for inspection
✅ Step 6 – Licence Issuance
- If approved, certificate is issued and can be downloaded online
To ensure a smooth process, prepare:
- MOA & AOA / Partnership Deed
- Building Stability Certificate from a certified engineer
- Factory Layout & Machinery Plan approval
- NOCs from Fire Department & Pollution Control Board
- PAN, GST, Occupancy Proof
- Detailed worker information (designation, wages, shifts)
📌 Incomplete or incorrect submissions may delay approval.
🔹 Factory Licence Fees in Tamil Nadu (2025)
Fees vary depending on number of workers and installed horsepower (HP).
|
Worker Strength
|
Horsepower (HP)
|
Govt. Fees (₹ est.)
|
Validity
|
|---|---|---|---|
|
0–20 Workers
|
Up to 20 HP
|
₹4,000 – ₹6,000
|
1 Year
|
|
21–50 Workers
|
21–50 HP
|
₹7,000 – ₹10,000
|
1 Year
|
|
51–100 Workers
|
51–100 HP
|
₹12,000 – ₹15,000
|
1 Year
|
|
100+ Workers
|
101+ HP
|
₹20,000+
|
1 Year
|
📌 Note: Fees are revised periodically. Our team calculates the exact amount before filing.
A factory registration certificate is valid for one year and must be renewed before December 31 every year.
- Renewal is done through the DISH TN portal
- Delays = daily penalties + risk of closure
- Certificate is downloadable after online approval
⚠️ Case Study (2024): An Ambattur auto-parts unit with 35 employees failed to renew. Result → ₹50,000 fine + ₹1,000 per day until renewal.
Non-compliance under the Factories Act can cause:
- Fine up to ₹1,00,000
- Daily penalty for continued offence
- Daily penalty for continued offence
- Criminal prosecution of occupier/manager
👉 Compliance is always cheaper than penalties.
🔹 Factory Licence vs Trade Licence vs MSME Registration
Employers often confuse different permits. Here’s how they differ:
|
Feature
|
Factory Licence
|
Trade Licence
|
MSME/Udyam Registration
|
|---|---|---|---|
|
Governing Law
|
Factories Act, 1948
|
Municipal Acts
|
MSME Development Act
|
|
Applicability
|
Manufacturing Units
|
Shops & Establishments
|
All Small Businesses
|
|
Authority
|
DISH Tamil Nadu
|
Local Municipality
|
Udyam Portal
|
|
Purpose
|
Worker Safety & Welfare
|
Permission to Operate
|
Govt. Benefits/Subsidies
|
📌 For a factory in Chennai, all three may be needed depending on structure.
✔ 15+ years of expertise with DISH TN procedures
✔ Over 500 factories registered & renewed
✔ Offices in Guindy, Ambattur, Oragadam, Sriperumbudur
✔ Fast approvals in ~18 days on average
✔ Transparent pricing → From ₹9,999 + govt. fees
✔ On-time guarantee or full refund
✔ Trusted by 500+ clients → 4.9/5 Google Reviews
Follow these practices to stay compliant:
- Apply for plan approval before installing machinery
- Keep safety certificates (fire, stability, pollution) valid
- Use a digital compliance calendar to track renewal
- Maintain worker welfare facilities like restrooms, safety gear, and first ai
- Start renewal process well before Dec 31
Many Chennai employers face penalties due to:
- Assuming small factories are exempt
- Missing renewal deadlines
- Not updating worker strength or horsepower detail
- Submitting incomplete safety NOCs
👉 Avoiding these errors saves both time and money.
While Tamil Nadu enforces its own rules, it’s useful to see how compliance is handled globally:
- Germany: Strict worker welfare and “Living Wage” compliance checks.
- Japan: Factories must undergo safety drills and hazard audits.
- Bangladesh: Special factory registrations for garment units.
- India (2025): Moving towards digital-first inspections & online filings.
📌 Trend: Tamil Nadu is expected to further integrate online inspections and penalty auto-generation in the coming years.
🔹 FAQs – Factory Licence in Tamil Nadu (2025)
Register on the DISH TN portal, upload documents, pay govt. fees, and download the approval once issued.
Stability certificate, approved layout & machinery plan, Fire & Pollution NOC, MOA/AOA, PAN, GST, and worker details.
Yes. Annual renewal is mandatory on the portal. Late filing = fines.
The Directorate of Industrial Safety & Health (DISH), Tamil Nadu.
Yes, if they employ 10+ with power or 20+ without power.
📞 Get Expert Factory Licence Support Today
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