Factory Licence in 2026 — The OSH Code Replaced the Factories Act
Quick answer: Since 21 November 2025 a 'factory' is a premises with 20 or more workers using power (40 without) under the Occupational Safety, Health and Working Conditions Code, 2020 — up from 10/20 under the repealed Factories Act. Central Rules were notified on 8 May 2026; states are notifying theirs, and until then state Factories Rules keep being applied. Below the threshold you are an 'establishment' — but Delhi's MCD factory licence, pollution consent and fire NOC still run on their own triggers. We tell you which of the four apply before you file any of them.
Last verified 4 October 2026 — rules on this page checked against the current notifications. We update it the day a rule changes.
Thresholds and triggers — the 2026 table
| Trigger | Factories Act, 1948 (repealed 21 Nov 2025) | OSH Code, 2020 |
|---|---|---|
| Factory — with power | 10 workers | 20 workers |
| Factory — without power | 20 workers | 40 workers |
| Contract labour registration | 20 (CLRA Act) | 50 |
| Rules | State Factories Rules | OSH (Central) Rules 8 May 2026; state rules in progress — state Factories Rules applied meanwhile |
| Licence / registration | Separate factory licence, CLRA, BOCW etc. | Single registration for the establishment under the Code; factory licence retained for 'factories' |
What applies in each of our cities
| City | Factory licence authority | Other licences that do not wait for the Code threshold |
|---|---|---|
| Delhi (Okhla, Bawana, Narela, Mayapuri, Wazirpur) | Labour Department, GNCTD (Chief Inspector of Factories) under the OSH Code | MCD factory licence under the DMC Act (headcount/activity-based), DPCC consent, Delhi Fire Service NOC, Shop Act where not a factory |
| Noida, Greater Noida, Ghaziabad | UP Labour Department through Nivesh Mitra 3.0 (factory plan approval, then licence) | UPPCB consent via the same portal; authority building-plan sanction (now deemed land-use conversion) |
| Gurugram, Faridabad, Manesar | Haryana Labour Department (HEPC single window) | HSPCB consent, HSIIDC estate conditions, fire NOC |
| Patna, Bihta, Fatuha | Bihar Labour Resources Department through the Bihar Single Window (62 services) | BSPCB consent, Fire Services, BIADA allotment conditions |
What we do
- Threshold determination under the Code and the state rules in force on the date you apply
- Factory plan approval, licence and registration on the state portal; amendments on expansion
- The parallel municipal, pollution and fire files sequenced with it; EPF/ESIC and Labour Code compliance for the workforce
- Inspections, show-cause replies and renewals
Client: A 16-worker CNC job-work unit moving into a Bawana shed.
Situation: Was told it needed no licence 'under the new 20-worker rule' and skipped everything; an MCD inspection followed.
Approach: Confirmed it fell outside the OSH factory definition, then obtained the MCD factory licence, DPCC White-category undertaking and fire compliance, and registered ESIC (10+).
Outcome: Inspection closed without penalty; the owner knows which rule will bite when headcount reaches 20.
Client identity and certain details have been changed or withheld to protect confidentiality. Outcomes depend on individual facts and are not a guarantee of results.
Fire side: fire NOC thresholds and the Haryana 2022 Act.
Talk to us before you file anything
Frequently asked questions
Is the Factories Act 1948 still in force?
No — the OSH Code, 2020 subsumed it from 21 November 2025. Central Rules followed on 8 May 2026; states are notifying their own rules and, until they do, state Factories Rules keep being applied in practice.
How many workers make a unit a factory under the OSH Code?
20 or more with power, 40 or more without — up from 10 and 20. The contract-labour registration threshold is 50.
Do I need a factory licence in Delhi if I have 15 workers with power?
Not the OSH Code factory licence — but very likely the MCD factory licence, DPCC consent or undertaking, fire NOC and ESIC. We check all of them rather than assume exemption.
Is the Delhi MCD factory licence the same as the Labour Department licence?
No. The MCD licence is a municipal licence under the DMC Act; the Labour Department licence is the OSH Code factory licence. A unit can need both, one, or neither.
Where do I apply for a factory licence in Noida or Ghaziabad?
On Nivesh Mitra 3.0 — plan approval first, then the licence — with UPPCB consent on the same portal; the authority's building-plan sanction now also counts as land-use conversion.
What happens if my headcount crosses 20 mid-year?
You become a factory from that date: apply for the licence promptly, and EPF (20+) follows if not already registered. Inspectors look at the date of first employment of the 20th worker.