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 License

A 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 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