Maharashtra, being one of India’s most industrialized states, is home to thousands of manufacturing units spread across various sectors. While the opportunities for growth in this region are immense, compliance with industrial regulations is non-negotiable. The backbone of legal operations for any factory lies in two critical components: Factory License and DISH Plan Approvals. Without these, manufacturers risk penalties, shutdowns, and reputational damage.
This guest post dives deep into what these approvals entail, why they are essential, the process to obtain them, and how businesses can benefit from staying compliant.
What is a Factory License?
A Factory License is a statutory requirement under the Factories Act, 1948. It acts as a legal permit allowing a business to run a manufacturing unit. Any premises where ten or more workers are employed with power (or 20 or more without power) must register as a factory and obtain this license from the Directorate of Industrial Safety and Health (DISH).
Obtaining a Factory License and DISH Plan Approvals ensures that the workplace is designed and operated in compliance with safety norms, labor laws, and environmental considerations. It helps establish accountability and protects not only workers but also the factory management from legal entanglements.
Who Needs a Factory License?
Any enterprise involved in:
Manufacturing or processing of goods,
Operating machines or using power in operations,
Employing 10 or more workers with power or 20 without power,
must register and obtain a Factory License before commencing operations.
Understanding DISH Plan Approvals
DISH Plan Approvals are a prerequisite before establishing or modifying a factory. Before construction begins, factories must submit building layout plans to DISH for approval. These plans must include machinery placement, fire exits, ventilation systems, emergency evacuation plans, and other safety provisions.
The importance of DISH Plan Approvals cannot be overstated. A faulty or non-compliant layout can lead to severe accidents, inefficiencies, or regulatory action. Thus, plan approvals ensure worker safety, regulatory compliance, and operational efficiency from day one.
Why These Approvals Are Crucial
Legal Compliance: Without these licenses, running a factory is considered illegal. Regular inspections by DISH officers can result in heavy penalties for non-compliant factories.
Workplace Safety: Safety norms laid out under these licenses help reduce the risk of industrial accidents, safeguarding workers and machinery.
Fire and Hazard Control: With proper DISH plan approvals, factories are structured to deal with fire hazards and emergencies more effectively.
Operational Continuity: Licensed factories are less likely to face shutdowns during audits or inspections, enabling consistent operations.
Credibility and Trust: Having the required licenses builds confidence among stakeholders, investors, and customers.
Process for Obtaining Factory License and DISH Plan Approvals
The process is detailed and requires a systematic approach:
Step 1: Preparing the Layout Plan
Prepare a layout of the factory premises indicating machinery positions, workflow, fire exits, sanitation facilities, electrical layouts, and more. This must align with DISH guidelines.
Step 2: Application Submission
Apply online or physically with the Directorate of Industrial Safety and Health. The submission includes:
Application form
Site layout
Machinery list
Health and safety measures
Ownership documents
Step 3: Departmental Scrutiny
DISH officials review the submitted plans. They may suggest changes for compliance before final approval.
Step 4: Factory Inspection
After plan approval and setup, an inspection is conducted to ensure the site matches the submitted plan. Only post-inspection is the Factory License and DISH Plan Approvals granted.
Step 5: Issuance of Factory License
Upon successful inspection and verification, the license is issued for a specific duration (typically 1 year, but multi-year options exist).
Factory License Renewal: An Ongoing Obligation
Renewing a factory license is not a one-time process. Renewal ensures that the factory is still compliant with updated legal norms, workforce size, and safety standards.
Key points about Factories License Renewal:
Must be applied for before expiry
Requires updating machinery or process changes
Includes a reassessment of safety compliance
Helps avoid penalties or forced shutdowns
Timely renewal is just as important as the initial license, as authorities conduct surprise inspections to check validity and compliance.
Common Challenges Faced by Manufacturers
Many businesses, especially MSMEs, struggle with the licensing process due to:
Lack of knowledge about documentation
Delays in approvals due to incorrect layouts
Unfamiliarity with online portals
Misinterpretation of DISH guidelines
This is why it’s recommended to engage professionals who specialize in Factory License and DISH Plan Approvals. Their experience helps navigate paperwork, coordinate inspections, and ensure end-to-end compliance.
Digitalization and E-Governance
The Maharashtra government has taken significant steps to simplify the process via online portals. Applicants can now submit layouts, receive inspection updates, and download licenses without visiting DISH offices frequently. While this has reduced manual work, it also increases the importance of submitting error-free and professional documents.
Benefits of Staying Compliant
Avoid Legal Trouble: Timely approvals and renewals prevent government notices or closure orders.
Boost Productivity: A safe and approved factory layout leads to better working conditions and efficiency.
Stakeholder Confidence: Vendors and clients prefer working with licensed, compliant units.
Attract Investments: Legally compliant businesses are more likely to receive funding or collaboration offers.
Long-Term Savings: Avoiding penalties and legal costs can save lakhs annually.
Conclusion
Starting or operating a manufacturing unit in Maharashtra without proper approvals is a risky endeavor. From safety hazards to legal disputes, the consequences can be serious. That’s why obtaining your Factory License and DISH Plan Approvals is not just a legal formality—it’s a strategic decision that sets the foundation for long-term business success.
If you're unsure about where to begin, consult a reliable licensing expert who can help you understand the process, prepare your documents, and ensure that your factory operates without compliance-related hiccups.
