There are already 21 factions in BI - the WRE Rebels, the ERE Rebels, the Ostrogoths, the slave faction all count as factions too. To make them into normal factions you have to give them a settlement at the beginning of the game and remove the shadowing/shadowed_by bits in descr_sm_factions from the WRER/WRE and ERER/ERE and the spawns_on_revolt/spawned_by line in the Goth/Ostrogoth entry.
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