Delhi Factory License : An Overview For Factory Owners
Factory License Registration in Delhi is a mandatory certification required by manufacturers or factories. The process of factory registration is governed by the Factories Act 1948 and issued by the local authorities as per the Delhi Factories Rule 1950. It is to regulate the safety conditions of workers and laborers working in the factories.
Therefore, if you are a new startup or small factory owner venturing into the manufacturing sector in any of these cities, it is obligatory by law to comply with the Factory Act 1948 and obtain the mandatory authorization to start manufacturing.
Professional Utilities assists in obtaining a Factory License across Delhi, including prominent industrial regions such as Okhla, Naraina, Anand Parbat, Wazirpur, Jhilmil, Bawana, Narela, Patparganj, and Mayapuri, simplifying the entire registration process. Our team of experts will walk you through every step of the licensing process, ensuring that your application is processed smoothly and easily.
Factory License Certificate [Sample]
Factory License Registration
Process For Factory License Registration is as Follows : Applicants are required to
- Step 1: Approval for factory building plan: Before gathering the requisite documents for the set-up of a factory, approval for a factory building license from the concerned authority is essential. To approve your factory establishment, you must draft your factory building plan according to the regulations and standards.
- Step 2: Documentation: Upon receiving the duly approved factory building plan, your next step is to gather all the requisite documents according to the type of organization you want to establish. For this, an applicant should make sure that all the information, you provide in the document is complete and accurate without filling in any discrepancies.
- Step 3: Payment of fees for application: After submitting all the necessary documents, you have to make a payment for the application you’ve filled out as per the guidelines provided by the relevant authority. You have to ensure that you’ve successfully received proof that you’ve paid for the concerned application.
- Step 4: Verification of documents: The concerned authority will verify the originality, accuracy, and information of the documents upon receiving the payment for the application. The authority would rather review the application and the documents required.
- Step 5: Inspection by the Chief Inspector of Factories: The Chief Inspector shall schedule the date for visiting the factory premises. You may need to create transparency before investigators can verify compliance and safety standards. After investigating, the inspector will make a report on your factory based on their observations and true findings.
- Step 6: Issuance of certificate: Based on the remarks made in the report by the investigators, the authorities will decide whether your factory would be a better fit for the license. The applicant would be notified of the decision if the permit had been issued. Otherwise, the applicant needs to take corrective measures and reapply.
Documents Required For Factory License In Delhi
These are the List of Documents Required to attach during the filling for Factory License Registration in Delhi.
- ID proof of Owner and Manager
- List of Partners/Directors with their residential address
- NOC from other partners or Board Resolution by Directors for the nomination of occupier
- Proof/supporting documents of Occupier as Director/Partner/Proprietor of the factory
- Existing building plan in PDF format as per Rule 3A of the Delhi Factories Rules, 1950
- Latest electricity bill as proof of sanctioned load of electricity
- Proof of occupancy (copy of rent agreement/ownership proof)
- Flow chart of manufacturing process
- List of raw materials used in the manufacturing process
- List of machineries installed in the premises
- Such other particulars as the Chief Inspector/Director (ISH) may require
What is the Fee for Factory Registration In Delhi?
The professional fee for a factory license starts at only ₹19,999. Applicants must also pay a government fee for certification after that.
| Horse Power Install(Max HP) | 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 | 10000 |
| 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.
What is Factory License Registration in Delhi?
Factory Registration Certificate is a permit issued to factories operating in their respective states. The purpose of factory registration is to regulate the working conditions and safety of workers in the factory. Factory Registration is a very important authorization granted by local authorities in their respective states.
Benefits of Factory License Registration
- Legal Compliance: Obtaining a Factory License ensures that the business complies with the legal requirements outlined in the Factories Act. This helps in avoiding legal issues and penalties for non-compliance.
- Safety and Health Standards: The Factories Act mandates certain safety and health standards for factories. Obtaining a Factory License ensures that the business adheres to these standards, providing a safe and healthy working environment for employees.
- Regulatory Oversight: The issuance of a Factory License involves inspection and approval from the Factory Inspectorate. This regulatory oversight helps in maintaining and improving workplace conditions.
- Employee Welfare: The Factories Act includes provisions related to working hours, leave policies, and welfare amenities for workers. By obtaining a Factory License, a business demonstrates its commitment to the welfare of its employees.
- Insurance Coverage: Some insurance companies may require a valid Factory License as a prerequisite for providing insurance coverage to the factory. This can be crucial in mitigating financial risks associated with accidents or other unforeseen events.
- Government Monitoring: A Factory License facilitates government monitoring of industrial activities. This is essential for planning and implementing policies related to industrial development, labor welfare, and environmental protection.
- Access to Government Incentives: In some cases, having a valid Factory License may make the business eligible for government incentives, subsidies, or support programs aimed at promoting industrial growth and compliance with regulations.
- Credibility: Possessing a Factory License enhances the credibility of the business. It signals to customers, suppliers, and other stakeholders that the business operates within the legal framework and is committed to maintaining high standards.
- Environmental Compliance: Factories are often required to adhere to environmental norms. The Factory License process may include checks to ensure that the industrial activities do not adversely impact the environment, promoting sustainable and responsible business practices.
- Facilitates Expansion: When a business plans to expand its manufacturing operations in Okhla, Naraina, Anand Parbat, Wazirpur, Jhilmil, Bawana, Narela, Patparganj, and Mayapuri, having a valid factory license is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.
Eligibility For Obtaining Factory License In Delhi
Factory license registration criteria are classified under the following categories.
- Factories with 10 or more workers, works with power.
- Factories with 20 or more workers that do not have access to power.
How To Renew Factory License In Delhi?
Factory licenses are valid for 1 to 5 years, but the renewal date varies by state. However, factory owners must apply for renewal before the due date to keep production running smoothly.
Compliances After Factory License Registration In Delhi
The following are the statutory compliances that the factory owner must meet:
- Health benefits
- Safety measures
- Welfare programs
- Employment of minors
- Working hours for adults
- Annual leave and wages
Professional Utilities : Your Registration Partner
At Professional Utilities, we understand the importance of obtaining timely authorization from the authorities to start your business as soon as possible. Our team of experts can help you get your factory license without any hassle or delay.
Conclusion
Factory license is a vital certification required by manufacturers in Delhi, including areas like Okhla, Naraina, Anand Parbat, Wazirpur, Jhilmil, Bawana, Narela, Patparganj, and Mayapuri. The process generally takes around 30 working days to obtain authorization from the MCD. A factory license ensures compliance with safety regulations and protects the welfare of workers, making it mandatory for owners to register their factory at least 15 days before commencing operations. Similarly, businesses can also explore Factory License Registration in Haryana to ensure legal compliance and smooth industrial operations in nearby regions.
FAQ’s On Factory License Registration in Delhi
Is factory license mandatory in Delhi?
The Factory License is an obligatory certification in Delhi and is required by all the manufacturing units operating in the state. The factory registration certification is issued by the local authorities in their respective states
How to get a Factory License in Delhi?
You can get your factory license registration with us in just a few clicks
- Contact us
- Provide Details & Documents
- Issuance of Factory Registration
What are the fees for factory license certification in Delhi?
The Professional Fees for Factory License Registration with Professional Utilities starts from ₹19,999/- only.
Renewal and Validity of Factory License in Delhi?
The factory license is valid up to the time frame of 1-5 years. Factory Owners are required to renew their license prior to their due date.