Professional Guidance for MCD Factory License
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Introduction
MCD Factory License is governed by Delhi Municipal Corporation (DMC) Act, 1957 and provision of Master Plant of Delhi. Section 416 and 417 of DMC Act, 1957 requires that person should get prior permission of the commissioner in writing to establish in any premises, or materially alter, enlarge or extend, any factory, workshop or trade premises in which it is intended to employ steam, electricity, water or other mechanical power. Factory License can be obtained for confirming industrial area, DDA/DSIDC/DI Built up Auction/Allotted sheds, free hold plots, House hold category, Local Commercial Category, Relocation Scheme, Subletting of lease hold plots and sheds. Greenshield enviro is the best factory licence (MCD) consultant in Delhi. You can get MCD Factory License hassle free, easy and in accordance with DMC Act, 1957, rules under DMC Act and Master of Delhi.
Benefits
- Night shifts are allowed only to units having MCD factory license. Factory or trade must be located in industrial area and permission of commissioner of Municipal Corporation of Delhi is required.
- Factory or trade cannot initiate operation in Delhi until having prior permission of commissioner of Municipal Corporation of Delhi (MCD) under DMC Act.
- MCD Factory License will also shield from penalty provision of Delhi Municipal Corporation (DMC) Act. Section 416 and 417 of DMC Act provides penalty provision for non-registration.
Checklist
As per the requirement of Delhi Municipal Corporation, applicant must guarantee that the checklist requirements are met.
- Industrial Unit operating in confirming industrial area.
- Proof of occupancy: Either ownership proof or rent agreement along with NOC from the owner of property.
- Delhi Pollution Control Committee Consent is mandatory for Factory License.
- Fire NOC or Firm Extinguisher bills
Documents for DDA/DSIDC/Directorate of industries built-up auction/allotted sheds
- Copy of the lease deed. If not executed, copy of auction letter, possession letter, NOC regarding trade.
- One copy each of site plan and key plan.
- Constitution of the firm, if any.
- Copy of terms and conditions for allotment of the Shed.
- Affidavit as prescribed (Download Annexure-5)
- A rough sketch showing the proposed installation of machinery along with list of machinery with power load (HP) rating.
- One copy of manufacturing process for the applied trade.
Documents for Sub-letting of lease hold Plots/Sheds
- Copy of rent receipt, license deed and/or rent agreement.
- One copy of site plan clearly demarcating the proposed area of sub-letting and existing/amended area of the original licensee with measurements and duly signed by the both parties.
- One copy each of site plan and key plan.
- Constitution of the firm, if any.
- Affidavit in the prescribed proforma, which is shown in Download Annexure – 5
- Undertaking in the prescribed proforma, which is shown in Download Annexure – 7
- NOC from the landlord/owner. (Download Annexure-6)
- A rough sketch showing the proposed installation of machinery along with list of proposed machinery with power load (HP) rating.
- One copy of manufacturing process for the applied trade.
Note :
- The power load shall be granted @ 20 Horse Power for an area less than 500 Sq. Ft and minimum of 300 Sq. Ft. However, there is no restriction on the power load for an area more than 500 Sq. Ft. provided sufficient space is available for installation of machinery.
- Factory license for relocation scheme plots will not be granted under sub-letting category.
Documents for free hold plots
- Proof of ownership/tenancy/legal occupancy.
- One copy of site plan clearly indicating the proposed site and the existing units on the particular plot in question.
- Affidavit on stamp paper of Rs.10/- that no unauthorized construction has been carried out, which is as per Download Annexure – 5
- One copy of key plan giving the salient features in neighborhood of the site in question.
- Copy of the constitution of the firm, if any.
- Undertaking on the prescribed proforma, which is as per Download Annexure – 4
- A rough sketch showing the proposed installation of machinery along with list of machinery with power load (HP) rating.
- One copy of manufacturing process for the applied trade
Documents for Local Commercial Category
- Copy of Lease Deed. If not executed, Copy of auction letter, possession letter.
- Proof of ownership/tenancy/legal occupancy.
- Copy of terms and conditions for allotment of the premises by the Land-Owning Agency.
- One copy each of site plan and key plan.
- Constitution of the firm, if any.
- Affidavit as prescribed, which is as per Download Annexure – 3
- One copy of the site plan with dimensions (blue print)
- One copy of key plan earmarking the salient features in neighborhood site in question along with Zonal Plan and Part Layout Plan indicating the site.
- Affidavit regarding no unauthorized construction having been carried out, which is as per Download Annexure – 5
- A rough sketch showing the proposed installation of machinery with list of machinery with power (HP) rating.
- One copy of manufacturing process for the applied trade.
Note : Online Factory license in this category will be granted only for the premises allotted for commercial/industrial use by the Government land owning agencies.
Note: Municipal factory licenses will be issued for running factories only on ground floor. However, in case of approved flatted factories the licenses will be given for all sanctioned floors.
Renewal of License
- MCD license have validity of 1 year expires on last date of financial year i.e., 31st March every year. From financial year 2020-21 MCD allowed to get renewal for maximum period of 3 years.
List of Documents required of renewal of MCD License are as follow:
- Copy of previous license copy
- DPCC license
- Fire NOC/ Fire equipment invoices
- Detail of machinery
- Manufacturing process flow
WHY GREENSHIELD ENVIRO ?
Greenshield enviro provides you facility of get MCD (Municipal Corporation of Delhi) License from your home/office. You can provide all the document through email or WhatsApp or physical copy to our Expert Team. Greenshield enviro can provide you Certificate with in approx. 3-4 months.
Package includes :-
- Preparation of Affidavit
- Project Report and Undertaking preparation
- Preparation of Machinery detail with HP
- Preparation of Process Flow
- Drafting of Application
- Issuance of Factory License Certificate
Penalties
Contravention of the provisions of Section 416 of DMC Act, 1957 would attract penalties as prescribed in the 12th Schedule (Under Section 416) and at present the same are:
- Establishment of factory, etc., without permission of the Commissioner, MCD is punishable with a minimum fine of Rs. 5000/- (Rupees Five Thousand only) and additional fine of Rs.50/- per day for running of the unit without permission.
Contravention of the provisions of Section 417 of DMC Act, 1957 would attract penalties as prescribed in the 12th Schedule (Under Section is 417) and at present the same are :
- Carrying on a trade without license will attract a penalty of Rs.1000/- (Rupees One Thousand only) and additional fine of Rs.100/- per day for continuation of the offence.
Factory Licensing department is regulated by the provisions contained under section 416/417 & 430 of DMC Act 1957. Section 416 of the DMC Act, 1957 places an obligation on the person desirous to establish any factory, workshop in which it is intended to employ, steam, electricity, water or other mechanical power has to obtain prior permission of Commissioner, SDMC in writing.
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