Delhi Factory Registration

Delhi Factory Registration

Delhi Factory Registration

Delhi factory registration is mandated by the Factories Act, 1948 to ensure that a factory complies with the stipulated rules and safety guidelines. Upon registering a factory, the Government of Delhi issues a factory license. This factory license is a document of authorisation for granting permission to regulate and carry out manufacturing pursuits from a particular locality. In this article, we look at the procedure for obtaining Delhi factory registration in detail.

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.

Applicable Fe

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 5051 to 100101 to 250251 to 500501 to 750751 to 1000Above 1000
Nil10020040010001600300040005000
Up to 1020040048012002400360048006000
10 to 504006008002000400060008000100000
50 to 100800100012003000600090001200015000
Above 10012001600200040008000120001600020000

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.

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

Delhi Factory Registration Application Procedure

The application procedure to complete Delhi Factory Registration and get a license is explained in step-by-step procedure here:

Application Procedure for Factory Plan Approval:

Step 1: The Application for factory plan approval is required to be submitted in the prescribed format, accompanied by documents mentioned above at the following address:

  • Office of the Director of Factories
  • Labour Department, Government of NCT of Delhi,
  • 5-Sham Nath Marg, (D-Block IInd floor).
  • Delhi-110054.

Note: The Applicant can also apply online at the Website of Municipal Corporation of Delhi under the Single Window Clearance System (SWCS), Ease of Doing Business.

Form 1-Factories Act

Verification by the Deputy Director of Factories     

Step 2: The application for plan approval will be verified by the Deputy Director of Factories of the concerned districts in which the factory is to be constructed. After verification, the Director of factories will forward his/her recommendation to the Director of Factories.

Verification by Director of Factories

Step 3: In case, the application and the plans agree with the statutory requirements of the Factories Act, 1948 and Delhi Factories Rules, 1950, the factory plan will be approved by the Director of factories after verifying the recommendations of the concerned Deputy Director of Factories

 Get Approval Letter

Step 4: The concerned Director of factories upon approval of the factory plans will sign and return one set of Factory Building Plans to the applicant, along with the Approval Letter.

Note: It is advised that the applicant to retain the previously mentioned Approval Letter and Approved Plan, as the same will have to be required to be produced on demand by the Directorate of Factories.

Application Procedure for Delhi Factory Registration

An occupier of a factory needs to get a License under the provisions of the Delhi Factories Rules, 1950.

Step 1: The occupier is required to make an Application to the Office of the Directorate of Factories, to get the factory license.

FORM 2

Verification by District Deputy Director

Step 2: The district Deputy Director of Factories will scrutinise the application, and in case any defect is noticed, the defect will be communicated to the applicant through a letter, pointing out the defects.

Step 3: Once the application is completed in all aspect, the factory premises will be inspected by the Director of factories or by Assistant Director of factories or by Deputy Director of factories to assess suitability for grant of License.

Get factory license

If factory conforms to the statutory limits, the Director of Factories will grant factory the license.

Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.