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    Factory License

    Get your factory license, easy and hassle free with India’s fastest growing platform . You just connect with our expert and rest our team will do.

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    Factory License with EAdvisors.

    Now getting a Factory License  is easy, hassle fee and quick,
    with EAdvisors professional team.

    Drop Query

    Provide your exact requirement like number of partners, location and business activity through our contact form.

    Discussion with Expert

    EAdvisors expert will contact you to discuss about registration process, documents required and resolve your queries.

    Drafting of Application

    Drafting of registration application, process flow, machinery detail, approved map of unit, declaration and undertaking etc as per requirements of Factory Act 1948.

    Issuance of Certificate

    The Government of that particular state grants the factory license post inspection by the inspector.

    FACTORY ACT 1948
    Factory License

    INTRODUCTION

    Do you know operating a factory without registration is a punishable offence?

    Running a factory without the grant of factory license is a non-compliance of the clause mentioned under the Factories Act, 1948. Thererfore, leading to One Lakh of fine or two years of imprisonment Or both, as per Section 92 of the Factories Act, 1948.

    A Factory License is required to obtain for starting with a factory and the applicable act of the same is The Factories Act, 1948. Under this act there are specified definitions of different terms. Let us discuss what the meaning of the term “Factory”. Factory is basically a place where the manufacturing process is taking place having 10 or more workers with the aid of power or 20 or more workers without the aid of power.

    *Manufacturing process- defined under section 2 (k) of the said Act which illustrates the process of making, repairing, packaging, pumping, printing, cold storage etc.

    WHO IS REQUIRED?

    Anyone who runs a “factory” either under the owned or rented premises shall be considered under the Act as “occupier” and therefore all the occupiers must get ‘factory license’.

    It is to be noted that your premises must fall under the term “factory” as stated in the Act and satisfies the definition, only then obtaining license under the Factories Act, 19848 is a mandatory compliance.

    Also, there are some restrictions which allow factory setup only in those specified areas. As per the Factories Act, 1948 the factory must be operated in conforming industrial areas of Delhi only. However for “Public Utility Services” such as Petrol Pumps, CNG Stations, DTC Depots etc, the license is granted no matter what the location is. For public utility services, there is no such compliance for starting the unit on the conformed industrial areas.

    *Note:- As per the directions of Hon’ble Supreme Court, no factory can be operated in non-conforming areas.   

    DOCUMENTS REQUIRED

    1. ID proof of Occupier and Manager.
    2. List of Partners/Directors with their residential address.
    3. NOC from other partners or Board Resolution by Directors for nomination of occupier as per sections 2(n) and 7 of the Factories Act, 1948.
    4. Proof/supporting documents of Occupier as Director/ Partner/ Proprietor of the factory.
    5. Existing building plan in PDF format as per Rule 3A of the Delhi Factories Rules, 1950.
    6. Latest electricity bill as a proof of sanctioned load of electricity.
    7. Proof of occupancy (copy of rent agreement/ownership proof i.e. conveyance deed).
    8. Flow chart of manufacturing process.
    9. List of raw materials used in manufacturing process.
    10. List of machineries installed in the premises.
    11. Such other particulars as the Chief Inspector/Director (ISH) may require.

    APPLICABLE FEES

    Applicable Fees under The Factories Act 1948

    H.P InstalledMaximum number of workers to be employed on any day during the year
    Upto 20

     

    (Rs.)

    		21 to 50

     

    (Rs.)

    		51 to 100

     

    (Rs.)

    		101 to 250
    (Rs.)    		251 to 500

    (Rs.)

    		501 to 750
    (Rs.)    		751 to 1000
    (Rs.)    		Above 1000

    (Rs.)

    Nil10020040010001600300040005000
    Upto 1020040048012002400360048006000
    Above 10 and upto 50400600800200040006000800010000
    Above 50 and upto 100800100012003000600090001200015000
    Above 10012001600200040008000120001600020000

    OTHER NECESSARY INFORMATION

    1. The factory must be located in conforming industrial area of Delhi.
    2. And an alternative emergency staircase should be available in the factory premises.
    3. It the factory is closed (permanent/ temporary) shifted out of Delhi or no. of employees working is reduced to 10 in the past 12 months, then it is important to surrender the license.
    4. The license can be applied for one year, five years as well as for ten years also.
    5. Validity of the factory license stands for one, or five or ten years.
    6. There is no refunding system for the fees paid by the applicant.
    7. If the department is not satisfied with the documentation, then it may ask for re-submission.
    8. Within 3 days of time period, the applicant must send the reply along with the documents. Else, sending the documents after the time period prescribed may lead to rejection of the license and forfeiture of the fees paid.
    9. Only after prior and proper inspection of each and every document, the factory license is granted.
    10. The applicant can download the digitally signed factory license from the dashboard of the official website.

    FACTORY LICENSE COMPLIANCE

    1. Form 34 : is the form required to be filed annually under the Factories Act 1948
    2. Form 22 : is the form required to be filed half yearly under the Factories Act 1948

    Factory License

    Step by Step Registration Process

    Application for factory plan approval

    First step is to file an application in the prescribed format along with some additional documents.

    Verification By Deputy Director

    It is in the hands of Deputy Director to approve the application for factory plan approval. After the Deputy Director approval, the application is further sent to director.

    Verification by Director

    The Director shall inspect and if all the statutory requirements are fulfilled then he marks his approval.

    Acceptance of Approval letter

    When director is satisfied, he will be signing and returning one set of factory plan to the applicant along with the approval letter.

    What is a "Factory" under the Factories Act 1948?

    Factory under the Factories Act 1948 is considered as premises that are engaged in the “manufacturing process” that have employees 10 or more workers having an aid of power OR 20 or more workers working without the aid of power.

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    Who can be an "Occupier" under Factories Act 1948?

    Following are the person who can be considered as an occupier, namely proprietor/partner/director/nominated govt. officer of a factory. They can be an “Occupier” as defined under the Section 2(n) of the Factories Act 1948 and are eligible to apply for license. No other person, other than those mentioned above shall be treated as an occupier which simply means except these no one else shall be granted the factory license.

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    Exclusive

    How the term "manufacturing process" is defined under the Factories Act 1948?

    The term “Manufacturing Process” is defined under the Section 2(k) of the Factories Act 1948. Any process that constitutes making, repairing, packing, pumping, printing, cold storage etc.

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    What is the restriction under the Factories Act 1948?

    The restriction as specified in the Factories Act 1948 states that the factory license shall be granted to the “occupier” of a “factory” located only in conforming industrial areas of Delhi. However, “Public Utility Services”such as Petrol Pumps, CNG Stations, DTC Depots, etc are granted license
    irrespective of their locations.

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    Is "Factory License" necessary to obtain?

    Absolutely! As factory license is a crucial document that is necessary to obtain for running a factory. Non-compliance of factory license leads to a heavy penalty of Rs. 1 Lakh of fine OR 2 Years of imprisonment OR both as per the section 92 of the Factories Act, 1948.

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    How to obtain online factory license?

    The occupier is required to get himself registered through “Citizen Registration Form” available at e-District Delhi portal. He has to login e-District Delhi portal and select the service of “Registration and Grant of License under the Factories Act, 1948” and fill up “Service Specification Details” and upload necessary documents and pay online auto calculated fee by the system. All of this is stated under the provision of Rule 4 of the Delhi Factories Rules, 1950.

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    Frequent Asked Questions

    Factory License

    Factory License is a mandatory document which a person must have to carry out manufacturing activities.

    You can contact us to avail the best of services and hassle-free process. We commit to provide you with the best of services.

    Not at all possible. As the act states that factory must be established in the conforming industrial areas only.

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