Factory Licence in Delhi – Apply Online, Fees & Renewal Support
Ensure compliance and legal security for your manufacturing unit in Delhi with our expert licensing assistance.
Factory License Fee Calculator (Delhi)
Factory Licence In Delhi: How to Apply, Documents, And Fee Structure
Planning to set up a manufacturing unit in the capital? Then, obtaining a factory licence in Delhi will be the first thing on your priority list. This licence is issued under the Factories Act, 1948 & Delhi Factories Rules, 1950. This licence is important to operate a Factory unit in Delhi. A Delhi factory license is a legal document that serves as a guarantee that your factory complies with all the essential requirements concerning health and safety, as well as the welfare facilities for working employees.
If a factory is found operating without a Factory licence in Delhi, then it will be eligible for legal actions and penalties by the government authorities. So make sure you get your Factory license before operating.
Factorylicence.in can help you here. We are one of the trustworthy legal services providers. We can help you get various licences like factory licence in Delhi, MCD factory licence renewal South Delhi, North Delhi Municipal Corporation factory licence renewal online, Factory Licence Renewal in Delhi, and factory licence online application in Delhi.
What Is The Need For A Factory Licence In Delhi?
- You will face legal actions against yourself and your factory if you try to run a manufacturing unit with the Factory licence in Delhi. The Factories Act 1948 made the Delhi factory license compulsory to have for setup and operate a manufacturing unit within the capital boundaries.
- A factory license also helps the unit by generating trust inside the hearts of suppliers, customers, and government agents. A manufacturing unit with a factory licence is eligible for the government scheme and benefits like industrial incentives, which non-licensed factories won’t get. Registered factories also get a much validation in the eyes of insurance companies as compared to non-licensed ones. A factory license is considered an important document for both the financial protection and longevity of a business.
Contact us to help you with the registration process of the MCD factory licence renewal South Delhi.
Eligibility Criteria For A Factory Licence In Delhi Online
If a factory meets these points, then it is eligible for the factory licence registration:
- Factories with 10 or more workers, with the aid of power.
- Manufacturing unit with 20 or more workers operating without using power.
- Factories engaged in hazardous processes or dangerous operations as defined under the law.
- Startups and MSMEs involved in the production, processing, or assembling of goods.
- Importers are establishing a local manufacturing facility in India.
- Premises using machinery or power-driven tools for producing or modifying goods.
- Public or private sector enterprises that fall under the definition of a "factory" in the Factories Act, 1948.
- Industrial warehouses use machinery for processing, altering, repackaging, or handling goods.
- Export-Oriented Units (EOUs) are involved in any manufacturing activity.
- Entities that require pollution control or fire safety clearance due to operational risks are also subject to stricter regulatory oversight.
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Documents Required For Online Registration Of Factory Licence
Documentation is the most crucial part of the Factory registration process. If you miss or submit any wrong documents, then your factory license application process will take more than usual because of the delay due to the wrong or missing documents.
So it is good to double-check all the documents before submitting. We have mentioned the list required for the factory registration process. Documents required are:
- Building Plan Approval
- Layout Plan as per the Factories Act
- KYC Documents of Owners/Directors (Email id, Mobile No., PAN, Aadhaar, Voter id, Bank Statement, etc.)
- Incorporation documents (COI, Partnership Deed, LLP Agreement, etc.)
- Sale Deed/ Rent Agreement of premises.
- Sanctioned load from the authority / Latest Electricity Bill
- DPCC NOC
- Structural Stability certificate from an approved architect
- Fire NOC (for premises above 250 sq metres)
- Property Tax Receipt
- Manufacturing process flow chart
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How To Apply Factory Licence Online Application In Delhi
Follow this simple process to apply for factory licence in Delhi:
- Document Preparation: Gather all the required documents as per the checklist.
- Online Application: Visit the MCD Portal and navigate to the Trade & Factory Licences section.
- Form Submission: Fill out the application form and upload necessary documents.
- Fee Payment: Pay the prescribed licence fee online.
- Inspection: Await inspection by the concerned authorities.
- Licence Issuance: Upon successful verification, the factory licence will be issued.
Factory Licence Fees In Delhi
| H.P. Installed | Up - 20 | 21 - 50 | 51 - 100 | 101 - 250 | 251 - 500 | 501 - 750 | 751 - 1000 | Above 1000 |
|---|---|---|---|---|---|---|---|---|
| Nil | ₹100 | ₹200 | ₹400 | ₹1000 | ₹1600 | ₹3000 | ₹4000 | ₹5000 |
| Up to 10 | ₹200 | ₹400 | ₹480 | ₹1200 | ₹2400 | ₹3600 | ₹4800 | ₹6000 |
| Above 10 and up to 50 | ₹400 | ₹600 | ₹800 | ₹2000 | ₹4000 | ₹6000 | ₹8000 | ₹10000 |
| Above 50 and up to 100 | ₹800 | ₹1000 | ₹1200 | ₹3000 | ₹6000 | ₹9000 | ₹12000 | ₹15000 |
| Above 100 | ₹1200 | ₹1600 | ₹2000 | ₹4000 | ₹8000 | ₹12000 | ₹16000 | ₹20000 |
Renewal Fee
- Within April (grace period):
- License Fee = HP-rate × Total HP
- Permission Fee = Unit Charge (₹1000) + License Fee
- Processing Fee = 50% of License Fee
- Transaction Fee = ₹10
- Convenience Fee = 2.5937% of Total Amount
- After April (up to year end):
- Same as above plus: Late fee = ₹150 (for first 3 months) + 5% of license fee per additional month
- Beyond one year:
- Above charges + Arrear = ₹2,000 flat
Amendment Fee
- Processing Fee = ₹550 + 2.5937% Convenience Fee
- Registration Charges = Nil
- Amendment fee proper: Assessed by MCD officials at approval
Penalties in Case of Non-Compliance
- Operating a factory without a valid licence can lead to penalties up to ₹1,00,000 or imprisonment up to 2 years or both.
- Delayed renewal attracts a late fee of 25% of the fee payable for a calendar year which is charged wherein the application for renewal has been submitted in office after expiry of the time limit; i.e., after 30 days before the due date of expiry of Licence. System will auto-calculate total fee including late fee which has to be deposited online.
Timelines
Standard Processing Time - The factory licence registration takes around 25 to 30 working days, depending on document readiness and government processing time.
Factory Licence Renewal in Delhi
A Factory License in Delhi is usually valid for 1 to 5 years. Owners must apply for renewal before expiry to avoid penalties.
- Grace Period: April is often considered the renewal grace period.
- Late Fee: Delay attracts a late fee of 25% of the license fee and further penalties.
Renewal Fee
- Within April (grace period):
- License Fee = HP-rate × Total HP
- Permission Fee = Unit Charge (₹1000) + License Fee
- Processing Fee = 50% of License Fee
- Transaction Fee = ₹10
- Convenience Fee = 2.5937% of Total Amount
- After April (up to year-end):
- Same as above plus: Late fee = ₹150 (for first 3 months) + 5% of license fee per additional month
- Beyond one year:
- Above charges + Arrear = ₹2,000 flat
Amendment Fee
- Processing Fee = ₹550 + 2.5937% Convenience Fee
- Registration Charges = Nil
- Amendment fee proper: Assessed by MCD officials at approval
Why choose us?
The registration process of factory licence in delhi may seem easy, but a single mistake can cause a delay in the process. which will be a waste of time to save any possible rejection, you will need a professional factory license consultant who will guide you throughout the process. We have a team of expert legal advisors who will provide you with comprehensive support to ensure your error-free applications.
So don't waste more time, call Factorylicence.in now and get your factory registered as soon as possible!
Frequently Asked Questions
Yes, a factory license is mandatory for any manufacturing establishment in India that meets the criteria specified under the Factories Act, 1948 (i.e., 10+ workers with power, or 20+ workers without power). Operating without it is illegal and can lead to severe penalties.
Key documents required for a factory license include your approved factory plan, proof of premises ownership/occupancy, NOCs from the Fire and Pollution Control Boards, details of machinery and workers, business registration documents, and identity/address proofs of the occupier/manager.
A factory license is required to ensure the health, safety, and welfare of workers, regulate working conditions, and promote environmental responsibility. It provides legal authorisation for your factory's operation and ensures compliance with statutory provisions, preventing accidents and ensuring fair labour practices.
The factory license validity typically ranges from one to five years, depending on the specific state's factory rules. It's crucial to check your state's regulations and apply for factory license renewal before its expiry.
Yes, GST is applicable on factory license fees as these are considered a service provided by the government. The applicable GST rate must be paid along with the license fee during the application or factory license renewal process.
In most cases, a licence is non-transferable, and a fresh application must be made in case of ownership change.
Failure to renew leads to penalties and may result in the closure or sealing of the factory.
In many states, a Pollution Control Board clearance is mandatory before applying for a factory licence.