Establishment & factory
Factory compliance services
Protect your directors and keep every factory inspection-ready. We hold the licence, registers, returns and safety duties of the OSH Code in order for your plants, warehouses and the contractors inside them.
- Directors shielded from occupier liability
- No lapsed licences or shutdown orders
- Registers ready for any inspection
- Contractors checked at the gate
On the floor
Six places an inspector will look
Compliance in a factory is physical. Each part of the site carries its own duties under the OSH Code, and most of them can be seen by anyone who walks in.
The cost of non-compliance
What a lapse costs the factory and its directors
Under the OSH Code, a factory's compliance is not only the company's problem. It reaches the director named as occupier, and an inspector can stop work on the spot.
Exposure under the law
Source
₹2–3 lakh
plus up to ₹2,000 a day
01General penalty
For any contravention of the Code, its rules or a written order, payable by the employer or principal employer. The daily amount runs while the contravention continues after conviction.
OSH Code, 2020, s.94
Work stopped
until the danger is removed
02Prohibition order
Where conditions threaten serious hazard or imminent danger, an Inspector-cum-Facilitator can bar the occupier from employing anyone beyond a minimum crew. Working on in breach carries up to two years' imprisonment and a fine of up to ₹5 lakh.
OSH Code, s.38(1)(A) and s.104
₹50,000–1 lakh
per default
03Registers and returns
For failing to maintain a register, file a return or produce a record when asked. Omitting a required notice, return or report within its time carries ₹1 lakh to ₹2 lakh.
OSH Code, s.96(1) and s.99
Up to 2 years
or a fine of ₹5 lakh or more
04An accident causing death
Where a breach of duty results in a death. The court can direct at least half the fine to the victim's family, and a second conviction doubles the punishment.
OSH Code, s.103
Directors
deemed the occupier
05Personal liability
In a company, any director other than an independent director is deemed the occupier of the factory. Every person in charge of the business when an offence is committed is deemed guilty with the company, unless they show due diligence.
OSH Code, s.2(1)(zs) and s.109
Why NK One
Every filing, zero penalties.
Every licence renewal, register and return we handle for your factory is filed correctly and on time, so an inspection finds them in order.
Zero-penalty guarantee
No late fees, no interest, no surprise demands on anything we file for you. Every due date is tracked by people who have done this for 20 years.
Direct partner access
Since 2007, clients speak to the partners who run NK One, not a new compliance executive learning on your account.
Labour Codes
From the Factories Act to the OSH Code
The Factories Act, 1948 is one of 13 laws the OSH Code replaced on 21 November 2025. The safety, health and welfare duties carry across. What changed is who is covered, how the factory is licensed and who inspects it.
Scope of service
The work we run for each factory
Four files for each site: the licence, the recurring paperwork, the events nobody schedules, and the contractors on your premises.
- File01
Factory licence
From the first application to every renewal.
- Factory licences obtained and amended
- Prerequisites organised, such as plan approvals and stability certificates
- Renewal applications filed and followed through to approval
- Topography plans and registration certificates
- File02
Registers, returns and payments
The recurring work, on your state's calendar.
- Statutory registers maintained
- Returns prepared and filed
- Statutory abstracts and notices on display
- Statutory payments remitted
- File03
Inspections, accidents and committees
When someone visits, or something goes wrong.
- Support before and during inspections
- Accident-related compliance
- Statutory committees set up, such as the POSH committee
- Support to your contractors when the need arises
- File04
Contract labour at the factory
Your contractors' compliance, checked as part of yours.
- Entry and exit of contract labour regulated
- Principal employer registration certificate amended
- Accurate payment to contract workers checked
- Contractors' registers, returns, and PF and ESI challans prepared and submitted
Common mistakes
Where factory compliance usually slips
Most factory problems start small: a date missed, an old notice left on the wall, a contractor nobody checked.
Mistake 01 of 05
A renewal date missed
Renewal needs prerequisites such as plan approvals and stability certificates, and these take time to gather. Start late and the factory can end up running on a lapsed licence.
How we prevent it
We watch renewal dates, organise the documents early and follow the application until it is approved.
FAQ
Questions about factory compliance
Can't find your answer? Ask us on WhatsApp and we'll reply within 2 working hours.
Does the Factories Act still apply?
No. The Factories Act, 1948 was replaced by the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) on 21 November 2025. Central rules were notified on 8 May 2026 and states are still notifying theirs. Rules made under the old Act continue to apply where they do not conflict with the Code, until they are replaced.
When does a unit count as a factory under the OSH Code?
When 10 or more workers work there with the aid of power, or 20 or more without it, on any day in the preceding 12 months. Workers in every shift and relay that day are counted. If a state's earlier law set a different number, that number continues in the state until it is amended.
Is a factory licence issued under the Factories Act still valid?
Yes, for the period it was issued for. After it expires, it has to be obtained afresh under the OSH Code. A common licence can then cover the factory and the engagement of contract workers together.
How do you handle factory licence renewal?
We review and organise the documents, including prerequisites such as factory plan approvals and stability certificates. We prepare and submit the renewal application, coordinate with the authorities if they inspect or verify, and track the application until it is approved. Renewal dates sit in our recurring work, so the licence does not lapse.
What registers does a factory have to keep?
The OSH Code requires registers of work performed, working hours, weekly rest, wages, leave, overtime, attendance and dangerous occurrences, along with wage slips and returns. Factories also keep health and safety records, equipment records and a file of licences, NOCs and plan approvals. The Government's figures put the change at 84 registers down to 8, and 21 returns down to one, across the 13 laws the Code replaced.
What must a factory report after an accident?
A notice to the authorities for any accident that causes death, or an injury that keeps the worker away for 48 hours or more. Dangerous occurrences must be notified even without injury, and so must the occupational diseases the Code lists. The form and time limit come from the rules.
How often should a factory compliance audit be done?
Once a year or once a quarter, depending on the factory's size and risk. The audit checks labour law compliance, safety and statutory requirements, finds the gaps and recommends corrective action. It also prepares you for a government inspection.
What does factory compliance cost?
It depends on the number of factories, the states they are in, your headcount and how many contractors work on site. Send us an enquiry with those details and we will come back with a quote.
Related
Related services
Contractor & vendor compliance
Contract labour compliance for each contractor: entry and exit, registers, returns, EPF and ESI.
EHS compliance
Environment, health and safety licences, NOCs, returns and records.
Licences & registrations
Shops & Establishments, factory and contract labour registrations: obtained, amended, renewed and closed.
Enquiry
Talk to a compliance expert
Share your states and headcount, and we will get back to you within 2 working hours.
- Call+91 98457 40938
- WhatsApp+91 98457 40938
- Emailinfo@nkonehrsolutions.com
- Head office, Bengaluru1163, 9th Main, 11th A Cross, Nagapura, Mahalakshmipuram, near Rajajinagar Metro Station, Rajajinagar 1st Block, Bengaluru, Karnataka 560086
