MCD Factory License
MCD Factory License is governed by Delhi Municipal Corporation (DMC) Act, 1957 and provision of Master Plant of Delhi. Section 416 and 417 of DMC Act, 1957 requires that person should get prior permission of the commissioner in writing to establish in any premises, or materially alter, enlarge or extend, any factory, workshop or trade premises in which it is intended to employ steam, electricity, water or other mechanical power. Factory License can be obtain for confirming industrial area, DDA/DSIDC/DI Built up Auction/Allotted sheds, free hold plots, House hold category, Local Commercial Category, Relocation Scheme, Sub letting of lease hold plots and sheds.
TAXAJ is the best factory licence (MCD) consultant in Delhi. You can get MCD Factory License hassle free, easy and in accordance with DMC Act, 1957, rules under DMC Act and Master of Delhi.
It usually takes 15 to 20 working days.
- Application for Factory License
- Follow up with Department
- Allotment of Certificate of Factory License
Factories in which ten or more workers are employed with the aid of power for the manufacturing process and factories and factories, which are engaging twenty or more workers without using power in the manufacturing process, need to be registered in Delhi under the Factories Act, 1948.
Any entrepreneur who wishes to reconstruct, construct, extend or to take any building as a factory in Delhi needs to get plan approval and permission. After the construction of the factory, the factory owner or the manager has to register the factory under the Delhi factories act, 1948.
- Purchase of Plan
- Expert Assigned
- Preparation of documents
- Filing with Department
Name, Contact Number and Email Id of all the Stakeholders.
Directors Identification Number, if already.
Self Attested PAN, Aadhar & Passport size photo of all the Stakeholders.Application Form
The Original Receipt (T.R.6) from the Bank
Approved Plan as per provisions of the rule 3A of the Delhi Factories Rules, 1950
A copy of Municipal Trade and Power License or proof of connected power load
A copy of the Consent from Delhi Pollution Control Committee, according to the Water Prevention and Control of Pollution Act, 1974, the Air Prevention and Control of Pollution Act, 1981
A copy of the nomination of occupier by all the partners in case of Partnership Companies and by the board of directors in case of public or private Limited Companies
Health and Safety Policy, prepared following the provisions of rule 61-G of the Delhi Factories Rules, 1950, is also need to be submitted by factories engaged in a hazardous process
All About MCD or Trade License Applicability & Registration!
All About MCD Factory License
Factories Act, 1948
According to the Delhi factories act, any person who wants to construct, reconstruct, extend or to use any building as the factory in Delhi has to get prior permission from the prescribed authority in advance before the beginning of the manufacturing process.
The Delhi factories act is formulated with the aim of ensuring the installation of adequate safety measures and promoting the welfare and health of the workers employed in the factories. Also, it aspires to curtail the hazardous growth of factories. To complete the Delhi Factory Registration and to obtain a Delhi factory license you need to follow three steps:
- Obtain factory plan approval and permission to construct, reconstruct, extend or to take use any building as a factory
- Registration of factory and get factory license under the Factories Act, 1948 and Delhi Factories Rules, 1950
Eligibility Criteria
Factories in which ten or more workers are employed with the aid of power for the manufacturing process and factories and factories, which are engaging twenty or more workers without using power in the manufacturing process, need to be registered in Delhi under the Factories Act, 1948.
Any entrepreneur who wishes to reconstruct, construct, extend or to take any building as a factory in Delhi needs to get plan approval and permission. After the construction of the factory, the factory owner or the manager has to register the factory under the Delhi factories act, 1948.
When to Apply?
Application for Factory Plan Approval
Before starting construction, reconstruction of a factory or in case of expansion of the factory, the entrepreneur/applicant needs to apply for factory plan approval and to get permission for construction.
Application for Factory License
If the request for approval of factory plan and permission to construct a building as a factory has been successfully accepted and you can register the factory in Delhi and apply for a factory license before the commencement of manufacturing operation.
Licensing Authority
Directorate of Industrial Safety and Health, Government of Delhi facilitates the process of Delhi factory registration.
- The Director of Factories is the prescribed authority for Factories plan Approval
- Deputy Director of Factories is the prescribed authority for factory registration and issuing factory license
Validity of License
Factory license issued under Factories act, 1948 is valid up to 31 December of the year in which it has been granted.
Renewal of LicenseA factory may get the license renewed for either one year or five years. In case application for license renewal has been made for five years, five times the fee need to be paid.
MCD Factory License Documents Required
Documents are to be Submitted for Issuance of New Factory License
The following documents should be accompanied with the application form for obtaining a factory license
| Conforming (Industrial) Area | DDA/DSIDC/DI Built-up auction/allotted sheds | Industries Outside Industrial Area | Household Category | Local Commercial Category |
|---|---|---|---|---|
1. Ownership/registered occupancy proof in shape of perpetual deed, lease deed along with NOC of owner (complete chain of ownership not required). 2. Company details i.e., certificate of incorporation/MOU, authority letter in name of applicant/NOC of partner with partnership deed. 3. Building plan or sanction letters i.e. Form C & D. 4. Self-undertaking/Self declaration on letter head (No affidavit required) 5. Additional/Optional documents, if any. 6. DPCC consent. 7. Fire NOC (If premises come under purview above 250 sqm). | 1. Ownership/registered occupancy proof in shape of perpetual deed, lease deed along with NOC of owner (complete chain of ownership not required). 2. Company details i.e., certificate of incorporation/MOU, authority letter in name of applicant/NOC of partner with partnership deed. 3. Building plan or sanction letters i.e. Form C & D. 4. Self-undertaking/Self declaration on letter head (No affidavit required) 5. Additional/Optional documents, if any. 6. DPCC consent. 7. Fire NOC (If premises come under purview above 250 sqm). | 1. Ownership/registered occupancy proof in shape of perpetual deed, lease deed along with NOC of owner (complete chain of ownership not required). 2. Company details i.e., certificate of incorporation/MOU, authority letter in name of applicant/NOC of partner with partnership deed. 3. Self-undertaking /Self declaration on letter head (No affidavit required) 4. Key plan/Site plan. 5. Additional/Optional documents, if any. 6. DPCC consent. 7. Fire NOC (If premises come under purview above 250 sqm). | 1. Ownership/registered occupancy proof /lease deed alongwith NOC of owner 2. Details applicant i.e. Photo ID proof. 3. Copy of electricity bill & Site plan/key plan. 4. Self-undertaking /Self declaration on letter head (No affidavit required) 5. Additional/Optional documents, if any. 6. DPCC consent. (Not required being A category non-polluting trade) | 1. Ownership/registered occupancy proof /lease deed alongwith NOC of owner 2. Copy of electricity bill 3. Sanctioned building plan & site plan/key plan. 4. Self-undertaking /Self-declaration on letter head (No affidavit required) 5. DPCC consent 6. Certificate of safety of explosives. 7. Fire NOC (If premises come under purview above 250 sqm). |
Documents are to be Submitted for Renewal of Factory License
✓ DPCC
✓ Fire NOC (If area greater than 250 Sq. Mt)
Documents are to be Submitted for Amendment of Existing Factory License
✓ Constitution of firm/Incorporation certificate in case of public or private limited company. (for Change of constitution of firm)
✓ NOC/Authority in favor of applicant (for change of name of director/partner).
✓ Details of proposed machinery with H.P. rating. (For change in power load).
✓ Undertaking on company letter head.
✓ Consent from DPCC, If any, as per norms laid down for the applied industry (Required for all purposes and for change of trade) Consent from DPCC, If any, as per norms laid down for the applied industry (Required for all purposes and for change of trade)
✓ Additional Undertaking/indemnity Bond/affidavit as prescribed for clusters of industrial concentration earmarked for redevelopment into conforming industrial areas as per MPD-2021 Additional Undertaking/indemnity Bond/affidavit as prescribed for clusters of industrial concentration earmarked for redevelopment into conforming industrial areas as per MPD-2021
Documents are to be Submitted for Surrender of Factory License
✓ UID
✓ Undertaking
MCD Factory License Government/Legal Fees
SDMC Fee Chart while issuance of New License
Total Amount = Registration fee + Processing fee + Factory License fee + Permission fee
1. Permission fee = Unit charge + (HP rate x Total HP)
2. Registration Fee (Rs) -
a. Upto 5 H.P = 2000.00/-
b. 6 to 15 H.P = 4000.00/-
c. 16 to 50 H.P = 25000.00/-
d. ABOVE 50 H.P = 50000.00/-
*In case of Household – Registration fee is fixed as 1000.00/-
3. License Fee (Rs) -
a. Upto 5 H.P = 4000.00/-
b. 6 to 15 H.P = 8000.00/-
c. 16 to 50 H.P = 20000.00/-
d. Above 50 H.P =40000.00/-
* In case of Household = H.P. rate × Total H.P.
4. Processing fee (Rs) = 1000.00/-
5. Unit Charge (Rs) = 1000.00/-
6. Per H.P (Rs) = 50.00/-
7. Convenience Fee (Rs) = 2.5937% of the Total Amount
Charges associated while Renewal of License
1. Renewal in grace period i.e. April every year
➢ Total Amount = Permission Fee + Processing Fee + Transaction Fee + Convenience Fee
a. License Fee = H.P. rate × Total H.P.
b. Permission Fee = Unit Charge + License Fee
c. Processing Fee = 50% of License Fee
d. Transaction Fee = 10 (Fixed)
2. Renewal after April and prior to ending of current financial year.
➢ Total Amount = Permission Fee + Processing Fee + Transaction Fee + Late fee + Convenience Fee
a. License Fee = H.P. rate × Total H.P.
b. Permission Fee = Unit Charge + License Fee
c. Processing Fee = 50% of License Fee
d. Late fee = 150 (for 3 months @5% of License fee per month)
e. Transaction Fee = 10 (Fixed)
3. Renewal after One year
➢ Total Amount = Permission Fee + Processing Fee + Transaction Fee + Late fee + Arrear + Convenience Fee
a. License Fee = H.P. rate × Total H.P.
b. Permission Fee = Unit Charge + License Fee
c. Processing Fee = 50% of License Fee
d. Late fee = 150 (for 3 months @5% of License fee per month)
e. Transaction Fee = 10 (Fixed)
f. Arrear = 2000 (1000 License fee X 2.)
*Convenience Fee (Rs) will be charged as 2.5937% of the Total Amount
Charges associated while Amendment of License
1. Application/Processing Fees – Rs.550-00 + 2.5937% of the total amount towards Online Payment Convenience Fee will be collected at the time of Submission of Application Form for Amendment of Factory License
2. Registration Charges – NIL
3. Amendment Fee – will be decided by SDMC officials depending on the Type of Amendment at the time of approval of the application.
Charges associated while Surrender of License
Application/Processing Fees Rs.550-00 + 2.5937% of the total amount) towards Online Payment Convenience Fee will be collected at the time of Submission of Application Form for Surrender of Factory License
