whatsapp

MCD Factory License Delhi Registration

Schedule a Call With Expert

MCD Factory License Delhi Registration

MCD Factory License Delhi Registration

Nishi Chawla

18 Apr 2025

Reading Time: 6 Minutes

MCD Factory License Registration in Delhi

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.

Who Needs an MCD Factory License?

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

 

A Step-by-Step Process to Register for MCD Factory License

Let’s break down the entire application process into practical steps you can follow with ease.

Step 1: Get Your Documentation Ready

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.


Step 2: Visit the MCD Portal

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

Step 3: Fill the Application Form

Once logged in or registered as a user:

  • Select the “New Factory License” option
  • Put in the required applicant information, specify your business type, mention your workforce count, and state how much power you need.
  • Upload the scanned documents.

Ensure every detail is consistent with your documents. Mismatches often lead to rejections or delays

Step 4: Pay the Applicable License Fee

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.

Step 5: Inspection and Verification

Once the application is submitted. The Licensing Inspector from MCD makes an inspection of the facility to:

Have Questions? Let’s Talk. We’re Just One Click Away.

  • Verify physical setup
  • Check worker safety measures
  • Validate layout plan
  • Ensure fire and pollution compliance.

If everything is in place, approval is typically granted within 15–30 working days.

How to Renew or Modify an MCD Factory License

MCD factory licenses are generally issued for one year and must be renewed before expiry to avoid penalties.

Renewal Steps:

  • Log in to the MCD portal
  • Select “Renew License”
  • Upload latest electricity bill and worker details
  • Pay the renewal fee

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.

What Happens If You Don’t Register?

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.

Eligibility Conditions to Remember

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.

Common Reasons for Rejection

Even if you submit everything, errors can cost time. Below is what you should avoid:

  • Submitting expired documents
  • Using a residential address for an industrial license
  • Layout plan not signed by an approved architect
  • No NOC from Fire or Pollution Department (if applicable)

Double-check your application before hitting submit.

Conclusion

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.


 

Recent Blogs

Need Help? Talk to Expert Advisor.

Fast Replies. Real Support. No Spam. Enquire Now

Leave a Reply

Your email address will not be published. Required fields are marked *

A Seamless Experience with Our Proven 4-Step Process

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.

Raise an Enquiry
Raise an Enquiry
Dedicate Manager
Dedicate Manager
Real Time Update
Real Time Update
Project Completed
Project Completed

Testimonial

What our customer says about us

Our Clientele

Trusted by over 1,00,000 + Global Brands in the past 12 years

Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Client Image
Call Now Chat With Us whatsapp