Renewal Deadline: 31 December Each Year
Under Section 7 of the Factories Act, 1948, the occupier of a factory must hold a valid licence. Renewal must be applied for before the expiry of the existing licence — ideally by 31st October to allow time for inspection scheduling and any rectifications. The fee for late renewal is double the applicable annual licence fee.
Documents Required for Renewal
| Document | Purpose | Format |
|---|---|---|
| Form No. 2 (Application) | Formal renewal application | Online via WB Labour Dept portal |
| Site Plan / Layout Plan | Shows factory premises, machinery location, emergency exits | Blueprint / PDF, certified by licensed engineer |
| Machinery List | Current list of all machinery in use with HP rating | Typed, countersigned by occupier |
| Previous Year's Licence | Continuity verification | Original + photocopy |
| Treasury Challan / Payment Receipt | Proof of licence fee payment | Online payment receipt |
| Manager / Occupier Details | Certify who is responsible for the factory | Name, address, Form No. 3 appointment letter |
| Worker Strength Declaration | Daily average + maximum workers employed | Signed declaration by occupier |
| Electrical Safety Certificate | Certifies electrical installations are safe | From licenced electrical contractor, valid within 1 year |
| Environmental Consent (if applicable) | For factories with pollution load | From WBPCB — must be current |
| Annual Returns (Form 21 & 22) | Prior year returns must be filed before renewal | Filed on WB Labour portal |
The Online Renewal Process for West Bengal
- 1Login to the WB Labour Department portal (wblabour.gov.in) using your existing occupier/manager credentials.
- 2Navigate to Factory Licence → Renewal Application. Verify pre-filled establishment details — correct any changes (new occupier, revised worker count, etc.).
- 3Upload all required documents in PDF format. Ensure file sizes are within portal limits (typically 2MB per document).
- 4Calculate the applicable fee based on current worker strength and pay online via net banking or debit card. Download payment receipt.
- 5Submit application. Receive acknowledgement number for tracking.
- 6The Inspector of Factories will schedule a renewal inspection — typically within 30–60 days. Ensure all physical records are ready for inspection day.
Fee Structure (Approximate WB 2025 Rates)
| Worker Strength | Annual Licence Fee (Approx.) | Late Renewal Fee (Double) |
|---|---|---|
| Up to 50 workers | ₹2,500 | ₹5,000 |
| 51 – 250 workers | ₹6,000 | ₹12,000 |
| 251 – 500 workers | ₹12,000 | ₹24,000 |
| 500+ workers | ₹20,000 | ₹40,000 |
6 Most Common Reasons for Renewal Rejection
- Occupier name mismatch: If there has been a change of occupier (ownership transfer, director change) and it was not notified to the Factory Inspector, the renewal will be rejected until the change is formally approved.
- Expired electrical safety certificate: Must be from a licenced electrical contractor and issued within the preceding 12 months.
- Outdated site plan: If any structural changes were made to the factory building or machinery layout without updating the site plan, the renewal is rejected.
- Manager/Occupier change not notified: Any change of manager or certified occupier must be notified to the Inspector of Factories within 7 days of the change.
- Hazardous process declaration missing: Factories engaged in Schedule 1 (hazardous) processes must file a specific declaration. Missing this is an automatic rejection.
- Previous year dues outstanding: Arrear licence fees, fines, or any pending demand from the Factory Inspector must be cleared before renewal is accepted.
Annual Returns: Form 21 & Form 22
- Form 21 (Annual Return): Must be filed by 31st January each year. Covers total workers employed (by gender), working hours, accidents, and leave details for the preceding year.
- Form 22 (Leave with Wages Register): Must be filed by 15th February each year. Shows leave entitlement, leave taken, and leave encashed/carried forward for each worker.
- Non-filing of annual returns is a separate offence and can block factory licence renewal.
Criminal Liability Warning
Operating a factory without a valid licence is a criminal offence under Section 7 of the Factories Act, 1948. The occupier (typically the managing director or person responsible for management) is personally liable for prosecution. Penalties include imprisonment up to 2 years, fines, and closure orders. A licence in "pending renewal" status does NOT protect the occupier if the previous licence has expired.