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.
Documents Required
Documents required for Delhi factory registration is explained in detail in below:
Documents for Factory Plan Approval
- Flowchart of the factory manufacturing process supplemented by a description of the process in its various stages
- Plans in duplicate drawn to scale. The plan should contain the following details:
- The site structure of the factory and immediate surroundings including adjacent buildings, other structure, roads and drains
- The plan, elevations, necessary cross sections of the buildings indicating all relevant details of natural lighting, fire exits and ventilation. The plans should also clearly indicate the machinery, aisles and passageways
- Such other documents, as Chief Inspector of Factories, may require
- Proof for ownership of plot or premises such as Lease deed and sale deed
- In case of permission for factory construction on a vacant plot, an affidavit is to be produced by the owner of the plot
- The affidavit should also state that whether any previous approval of the Director of Factories for construction or extension have been obtained or not
- In case any previous approval has been obtained, the particulars of Approval for construction along with the previous Approval is required to be attached
- In case of approval of a plan for an extension, a copy of the previously approved plan with approval letter is required
Documents for Factory Registration
- 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
Documents Required for Renewal of a License
- Forwarding letter for renewal of a License
- Form Number 2 in triplicate, duly filled up and complete in all respects
- The original receipt TR6
- Original license for endorsement of renewal
Applicable Government/Legal Fees
Applicant need not pay any fee for factories plan approval. The Fees for the Grant of a License for a Factory for One Year is tabulated here:
Horse Power Installed | Maximum number of workers employed during a year | |||||||
Up to 20 | 21 to 50 | 51 to 100 | 101 to 250 | 251 to 500 | 501 to 750 | 751 to 1000 | Above 1000 | |
Nil | 100 | 200 | 400 | 1000 | 1600 | 3000 | 4000 | 5000 |
Up to 10 | 200 | 400 | 480 | 1200 | 2400 | 3600 | 4800 | 6000 |
10 to 50 | 400 | 600 | 800 | 2000 | 4000 | 6000 | 8000 | 100000 |
50 to 100 | 800 | 1000 | 1200 | 3000 | 6000 | 9000 | 12000 | 15000 |
Above 100 | 1200 | 1600 | 2000 | 4000 | 8000 | 12000 | 16000 | 20000 |
A fee as per Schedule needs to be paid in the State Bank of India, Old Secretariat, Delhi. The applicant needs to fill-up Treasury Challan (T.R.6) in triplicate. The Original Receipt given by the Bank is required to be furnished to the office of the Director of Factories.
Applicant need not pay any fee for factories plan approval. The Fees for the Grant of a License for a Factory for One Year is tabulated here:
Horse Power Installed | Maximum number of workers employed during a year | |||||||
Up to 20 | 21 to 50 | 51 to 100 | 101 to 250 | 251 to 500 | 501 to 750 | 751 to 1000 | Above 1000 | |
Nil | 100 | 200 | 400 | 1000 | 1600 | 3000 | 4000 | 5000 |
Up to 10 | 200 | 400 | 480 | 1200 | 2400 | 3600 | 4800 | 6000 |
10 to 50 | 400 | 600 | 800 | 2000 | 4000 | 6000 | 8000 | 100000 |
50 to 100 | 800 | 1000 | 1200 | 3000 | 6000 | 9000 | 12000 | 15000 |
Above 100 | 1200 | 1600 | 2000 | 4000 | 8000 | 12000 | 16000 | 20000 |
A fee as per Schedule needs to be paid in the State Bank of India, Old Secretariat, Delhi. The applicant needs to fill-up Treasury Challan (T.R.6) in triplicate. The Original Receipt given by the Bank is required to be furnished to the office of the Director of Factories.