Running a manufacturing unit in Delhi? Then obtaining the MCD Factory License is a legal necessity. The license is issued by the Municipal Corporation of Delhi (MCD). This license gives authority to individuals or businesses so they can operate a factory within city limits. Whether you're starting small or expanding an existing setup, registration isn't just a formality—it's your legal green signal.
If your business falls under the "factory" category as defined by the Factories Act, 1948, and involves employing workers, machinery, or industrial processes, then this license isn’t optional—it’s mandatory.
This is how you will know if your operation qualifies:
Criteria | License Required? |
Employs 10 or more workers with power machinery | Yes |
Employs 20 or more workers without power | Yes |
Home-based small units with no industrial process | No (unless notified) |
Storage-only facilities (no production) | Not mandatory |
Let’s break down the entire application process into practical steps you can follow with ease.
Before applying, collect and prepare the required documents. Mentioned below are documents required
Required Document | Purpose |
---|---|
Application form (Form A). | Formal request for license |
Identity proof of applicant | Aadhar card, Voter ID, Passport |
Address proof of factory premises | Rent agreement, ownership papers |
Layout plan of the factory | Site blueprint signed by a certified architect |
Site photographs | Front, side, entrance, machinery layout |
No Objection Certificate (NOC) from Fire Department | Especially for large-scale or fire-prone industries |
Pollution clearance. (if it is applicable) | For industries generating waste or emissions |
Proof of power supply | Latest electricity bill or power sanction letter. |
The Municipal Corporation of Delhi has converted most of its licensing operations into digital format. Apply for MCD Factory License in Delhi online. Open the MCD official website to start. Proceed to the Trade & Factory Licenses page of the site
Once logged in or registered as a user:
Ensure every detail is consistent with your documents. Mismatches often lead to rejections or delays
Your license expense depends on the area of your unit and how many staff you employ in either a business or industrial district.
Criteria | Factory License Fee (₹) |
---|---|
Small-scale (up to 10 workers) | ₹1,000 – ₹2,000 |
Medium-scale (10–50 workers) | ₹2,500 – ₹5,000 |
Large-scale (above 50 workers) | ₹6,000 – ₹10,000 |
Renewal (annual) | 50–70% of initial fee |
Keep the payment receipt safe—it will be required for future references or renewal.
Once the application is submitted. The Licensing Inspector from MCD makes an inspection of the facility to:
If everything is in place, approval is typically granted within 15–30 working days.
MCD factory licenses are generally issued for one year and must be renewed before expiry to avoid penalties.
Conduct this physical examination when you want to make big changes to building structures. You should file to modify your license through the same portal.
Operating without a valid factory license in Delhi is a punishable offense. Mentioned below are the risks:
Non-Compliance | Penalty |
---|---|
Operating without license | INR 10,000 to 1,00,000 fine |
Repeated violations | Business seal and license rejection |
False information or forged docs | Legal action, FIR, and blacklisting |
Don’t cut corners. Inspections can happen unannounced, and once flagged, your entire operation can come under scrutiny.
Before applying, make sure your unit meets the following:
Condition | Requirement |
---|---|
Business must fall under "Factory" category | Defined under Factories Act, 1948 |
Premises must be in industrial zone | No licenses for residential properties |
Safety and fire protocols in place | Especially for chemical or mechanical units |
Power usage must be declared | MCD checks for sanctioned load |
If you meet the above conditions. You’re good to go.
Even if you submit everything, errors can cost time. Below is what you should avoid:
Double-check your application before hitting submit.
If you're setting up or already running a manufacturing unit in Delhi, applying for an MCD Factory License Delhi registration isn’t just a box to check—it's your business’s legal foundation.
Avoid shortcuts. A properly registered unit gets easier access to bank loans, supply contracts, and government incentives. More importantly, you stay compliant with civic regulations, avoiding the risk of penalties or shutdowns.
The process has become far more streamlined thanks to the online registration system and clearer document guidelines. If needed, consult a compliance expert to get through it faster—because when it comes to factory licensing, being proactive beats being penalized.
Nishi Chawla
30 Sep, 2025
Nishi Chawla
30 Sep, 2025
Nishi Chawla
26 Sep, 2025
Nishi Chawla
26 Sep, 2025
Nishi Chawla
25 Sep, 2025
We simplify compliance through a proven 4-step process: Consultation, Documentation, Submission, and certification. From understanding requirements to getting final approvals, we deliver a smooth, timely, and fully compliant journey for your business.
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