Setting up a manufacturing unit in Punjab means dealing with more than one office. The Labour and Human Resource Department registers and licenses the factory under the Factories Act, while environmental, social security, building and product approvals run alongside it. Factory owners often get the machines running first and the paperwork later, which is exactly when inspections, notices and penalties begin. This guide explains which premises count as a factory, how registration works and which related approvals to plan at the same time.
Quick answer: In Punjab, premises where 10 or more workers are employed in a manufacturing process carried on with power generally qualify as a factory under the Factories Act, 1934 as applied in the province. The occupier must register and obtain a licence from the Labour and Human Resource Department before starting work, renew it as the rules require, and comply with health, safety, working-hours and welfare provisions. Most factories also need environmental approval from the Punjab EPA, PESSI and EOBI registration for workers, building and fire approvals, and product-specific licences.
Does your unit count as a factory?
The Factories Act defines a factory by the number of workers and the type of work. Premises where 10 or more workers are employed on any day of the preceding year in a manufacturing process carried on with the aid of power generally fall within the definition. Notified premises with fewer workers can also be brought under the Act. Manufacturing is read widely and includes making, altering, repairing, finishing, packing, washing, cleaning and treating articles for sale or use.
If your unit is close to the threshold, assume coverage and register. Seasonal peaks often push worker numbers above 10 even when the regular headcount is lower.
Documents usually needed for factory registration
- Application form signed by the occupier, with factory name, address and nature of manufacturing process
- CNIC of the occupier and manager; SECP incorporation documents or partnership deed where applicable
- Proof of premises: ownership or lease documents
- Site layout and building plan showing machinery placement, exits and fire safety arrangements
- List of machinery with installed horsepower
- Expected number of workers, shifts and working hours
- NTN and other business registrations
- Prescribed fee challan
How factory registration works in Punjab
- Plan the building correctly. Where the rules require it, submit plans for approval before construction or major extension, and design ventilation, lighting, exits and sanitation to the Act’s standards.
- Apply to the Labour and Human Resource Department with the documents and fee before production starts.
- Inspection. A labour inspector may visit to verify the premises, machinery, safety arrangements and records.
- Licence issued. The factory is registered and licensed for the stated process, machinery and workforce.
- Renew and update. Renew the licence as required, and notify the department of changes in occupier, manager, machinery or process.
Ongoing obligations under the Factories Act
- Health: cleanliness, ventilation, lighting, drinking water, toilets and control of dust and fumes
- Safety: machine guarding, safe electrical installations, fire exits and firefighting equipment
- Welfare: first aid, washing facilities and, above set thresholds, canteens and rest areas
- Working hours: limits on daily and weekly hours, rest intervals, weekly holidays and overtime pay
- Records: registers of workers, hours, leave, accidents and inspections kept at the premises
- Accident reporting to the authorities within the prescribed time
Approvals that run alongside factory registration
| Approval | Authority | Why it matters |
|---|---|---|
| Environmental approval (IEE or EIA, or registration) | Punjab Environmental Protection Agency | Required before construction for many industrial projects |
| Employer social security | PESSI | Medical and cash benefits for workers |
| Old-age benefits | EOBI | Federal pension contributions for workers |
| Building plan and fire safety | Development authority or local government; rescue and fire services | Structural, zoning and fire compliance |
| Boilers and pressure vessels | Boiler inspection authority | Registration and periodic inspection of boilers |
| Product licences | PSQCA, Punjab Food Authority, DRAP or others | Permission to sell regulated products |
Environmental approval is the one most often left too late. Our article on environmental approvals by project stage explains why it cannot be retrofitted. For worker registrations, see EOBI registration for employers, and for food units, the Punjab Food Authority licence. Our overview of business registration requirements shows the order that works best.
Frequently asked questions
When does a unit need factory registration in Punjab?
Generally when 10 or more workers are employed in a manufacturing process carried on with power. The government can also notify smaller premises as factories.
Which department registers factories in Punjab?
Factories are registered and licensed by the Labour and Human Resource Department of the Government of Punjab under the Factories Act, 1934 as applied in the province.
Is factory registration the same as environmental approval?
No. Factory registration is a labour law requirement. Environmental approval is issued separately by the Punjab Environmental Protection Agency.
Do I need to renew my factory licence?
Yes. Factory licences must be renewed as required by the rules, and changes in occupier, manager, machinery or process must be reported.
What other registrations does a new factory need?
Most factories also need PESSI and EOBI registration for workers, building and fire approvals, boiler registration if applicable, and product licences from regulators such as PSQCA or the Punjab Food Authority.
How CEC can help new factories
Connect Engineers & Consultants plans factory layouts, prepares factory registration and labour licence applications, and coordinates environmental, social security and product approvals so production can start on time. See our engineering solutions.
Setting up or expanding a factory in Punjab? Share your process and location and we will map every approval you need.
Labour laws, thresholds, fees and procedures can be amended by the Government of Punjab. Confirm current requirements with the Labour and Human Resource Department. This guide is general information, not legal or tax advice.
