Delhi Factory License : An Overview For Factory Owners

Updated on August 20, 2024 01:15:26 PM

Factory License Registration in Delhi is a mandatory certification required by manufacturers or factories in Delhi. The process of factory registration is governed by factories Act 1948 & issued by the local authorities as per Delhi factories rule 1950. It is to regulate the safety conditions of workers & laborers working in the factories.

Therefore, if you are a new startup or Small Factory owner venturing into the manufacturing sector of any kind it is obligatory by law to comply with factory act 1948 and obtain a mandatory authorization to start manufacturing.

We at Professional Utilities understand how important and urgent such certification can be. With the help of our experts you can get your Factory License online without any hassle and paperwork on affordable Cost.

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What is Factory License Registration in Delhi?

Factory License Registration Introduction

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.

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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.
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Documents Required For Factory License In Delhi

Factory License Registration Documents

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
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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.

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What is the Fee for Factory Registration In Delhi?

The professional fee for a factory license starts at only INR 49,999. 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.

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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.

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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
Factory License Registration Compliance
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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, having a valid Factory License is crucial. It streamlines the process of obtaining necessary approvals and permits for expansion.
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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.

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Conclusion

Factory license is a vital certification required by manufacturers in Delhi. The process takes around 30 working days to complete to get authorization from MCD. The factory license serves as a binding force that regulates the working and safety of factory workers. As a result, it is mandatory for owners to register their factory with the authorities at least 15 days before starting business.

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Factory license registration In Other States

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Why Professional Utilities?

At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.

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Frequently Asked Questions

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 INR 49,999/- 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.

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