{"id":43444,"date":"2022-05-18T11:29:49","date_gmt":"2022-05-18T05:59:49","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=43444"},"modified":"2024-12-12T18:07:09","modified_gmt":"2024-12-12T12:37:09","slug":"mcd-factory-license-procedure-and-documents","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/","title":{"rendered":"MCD Factory License Procedure and Documents"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Factory Act 1948 came into effect in the\nyear 1940. Since then, it has been serving as the sole regulatory framework for\nproduction facilities in India. It mandates production-related facilities to\nget registered and comply with underlying norms. We will delve into the norms\naround the MCD factory license. This blog discusses the procedure, eligibility,\nand document requirements for the MCD factory license.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#What_is_the_MCD_Factory_License\" >What is the MCD Factory License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#Why_Registration_of_factories_under_the_Factories_Act_1948_is_a_mandate_for_production_facilities\" >Why Registration of factories under the Factories Act, 1948 is a mandate\nfor production facilities?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#Checklist_to_Apply_for_the_MCA_Factory_License\" >Checklist to Apply for the MCA Factory License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#Documents_for_Directorate_of_Industries_DDA_DSIDC_built-up_auctionallotment_sheds\" >Documents for Directorate of Industries\/ DDA\/ DSIDC, built-up\nauction\/allotment sheds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#Documents_for_Sub-letting_of_leasehold_PlotsSheds\" >Documents for Sub-letting of leasehold Plots\/Sheds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#Documents_for_freehold_plots\" >Documents for freehold plots<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#Documents_for_Local_Commercial_Category\" >Documents for Local Commercial Category<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/mcd-factory-license-procedure-and-documents\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_MCD_Factory_License\"><\/span>What is the MCD Factory License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MCD <a href=\"https:\/\/corpbiz.io\/factory-license\" title=\"Factory License\"><strong>Factory License<\/strong><\/a> falls under the purview of the Delhi Municipal Corporation (DMC) Act, 1957 and Master Plant of Delhi.<\/p>\n\n\n\n<p>Section 416 &amp; 417 of the Delhi Municipal\nCorporation (DMC) Act, 1957 provides for the obtainment of prior approval of\nthe commissioner in writing for;<\/p>\n\n\n\n<ul>\n<li>Business\nowners looking to set up an establishment or factory that employs electricity,\nsteam, water or other mechanical power<\/li>\n\n\n\n<li>Entities\nintending to augment their present facility <\/li>\n<\/ul>\n\n\n\n<p><strong><em>Further, a factory license can be secured\nfor confirming; <\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>DDA\/DSIDC\/DI\nBuilt-up Auction\/Allotted sheds<\/li>\n\n\n\n<li>Industrial\narea<\/li>\n\n\n\n<li>Household\ncategory<\/li>\n\n\n\n<li>Freehold\nplots<\/li>\n\n\n\n<li>Relocation\nScheme<\/li>\n\n\n\n<li>Local\nCommercial Category<\/li>\n\n\n\n<li>Subletting\nof leasehold plots and sheds<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Registration_of_factories_under_the_Factories_Act_1948_is_a_mandate_for_production_facilities\"><\/span>Why Registration of factories under the Factories Act, 1948 is a mandate\nfor production facilities?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Registration of factories under the <strong>Factories Act, 1948<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Factories_Act,_1948_(India)\"><strong>[1]<\/strong><\/a><\/sup><strong> <\/strong>is mandatory because it seeks to; <\/p>\n\n\n\n<ul>\n<li>Undermine\nthe mal practices and illicit code of conduct by owners or person-in-charge<\/li>\n\n\n\n<li>Put\noversight on minor employment<\/li>\n\n\n\n<li>Ensure\nthe availability of an eco-friendly environment for the worker<\/li>\n\n\n\n<li>Protect\nWorkers&#8217; interest<\/li>\n\n\n\n<li>Ensures\nbetter hygiene and sanitation within the production premises<\/li>\n\n\n\n<li>Compel\nowners to abide by underlying provisions that preserve everyone&#8217;s interest<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Checklist_to_Apply_for_the_MCA_Factory_License\"><\/span>Checklist to Apply for the MCA Factory License <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the DMC&#8217;s requirements, the\napplicant is liable to comply with the following conditions before applying for\nan MCD factory license<\/p>\n\n\n\n<ul>\n<li>Production\nfacility present in the confirming industrial region<\/li>\n\n\n\n<li>Tenancy\nProof: Either rent agreement or property paper, as applicable<\/li>\n\n\n\n<li>NOC\nfrom Pollution Control Committee <\/li>\n\n\n\n<li>Invoices\nrelating to the firefighting equipment <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_for_Directorate_of_Industries_DDA_DSIDC_built-up_auctionallotment_sheds\"><\/span>Documents for Directorate of Industries\/ DDA\/ DSIDC, built-up\nauction\/allotment sheds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. Copy of the lease deed (non-executed one), auction letter copy, premises tenancy letter, NOC regarding <a href=\"https:\/\/corpbiz.io\/trade-license\" title=\"Trade License\"><strong>trade<\/strong><\/a><\/p>\n\n\n\n<p>2. Copy of layout plan <\/p>\n\n\n\n<p>3. Firm&#8217;s constitution, if any <\/p>\n\n\n\n<p>4. Copy of norms for shed&#8217;s allotment<\/p>\n\n\n\n<p>5. Affidavit in Annexure-5<\/p>\n\n\n\n<p>6. A rough schematic reflecting the\nproposed installation of equipment and machinery <\/p>\n\n\n\n<p>7. List of machinery along with their\nload rating <\/p>\n\n\n\n<p>8. Copy of production process <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_for_Sub-letting_of_leasehold_PlotsSheds\"><\/span>Documents for Sub-letting of leasehold Plots\/Sheds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. Copy of the rent agreement or rent\nreceipt,<\/p>\n\n\n\n<p>2. Copy of layout plan reflecting the\nprojected premises of sub-letting and existing\/amended area of the actual\nlicense holder with measurements, enclosing the signatures of either party. <\/p>\n\n\n\n<p>3. One copy of the key plan and layout\nplan. <\/p>\n\n\n\n<p>4. Firm&#8217;s Constitution, if any<\/p>\n\n\n\n<p>5. Affidavit in the standard proforma\nAnnexure \u2013 5<\/p>\n\n\n\n<p>6. Undertaking in Annexure \u2013 7<\/p>\n\n\n\n<p>7. Owner&#8217;s NOC in Annexure-6<\/p>\n\n\n\n<p>8. A rough drawing reflecting the\nproposed installation of production machinery <\/p>\n\n\n\n<p>9. A list of machinery along with their\npower rating<\/p>\n\n\n\n<p>10. Copy of production process <\/p>\n\n\n\n<p><strong>Note :<\/strong><\/p>\n\n\n\n<p>i. The power load available to the\npremises with an area ranging from 300-500 square feet has been capped @ 20\nHorse Power. The load threshold doesn&#8217;t exist for premises with an area greater\nthan 500 squares provided they have ample space for machinery installation. <\/p>\n\n\n\n<p>ii. Factory license shall remain unavailable for relocation scheme plots falling under the sub-letting category<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_for_freehold_plots\"><\/span>Documents for freehold plots <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. Ownership proof of the premises in\nquestion <\/p>\n\n\n\n<p>2. Site plan&#8217;s copy demonstrating the\nproposed site and the existing facilities in question<\/p>\n\n\n\n<p>3. Affidavit on Rs 10 stamp paper\nconfirming the legitimacy of the construction. (Note: Affidavit should be as per\nAnnexure \u2013 5)<\/p>\n\n\n\n<p>4. One copy of the key plan of premises\nin question <\/p>\n\n\n\n<p>5. Firm&#8217; constitution copy, if any. <\/p>\n\n\n\n<p>6. Undertaking the standard proforma as\nper Annexure \u2013 4<\/p>\n\n\n\n<p>7. A rough schematic demonstrating the\nprojected machinery&#8217;s installation along with the list of production machinery\nwith power rating. <\/p>\n\n\n\n<p>8. Copy of production process<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_for_Local_Commercial_Category\"><\/span>Documents for Local Commercial Category<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. Copy of lease deed (non-executed one),\nauction letter, and ownership letter. <\/p>\n\n\n\n<p>2. Proof of tenancy of the premises in\nquestion <\/p>\n\n\n\n<p>3. Copy of provisions that govern the\nallotment of the premises.<\/p>\n\n\n\n<p>4. One copy of the key plan and site\nplan. <\/p>\n\n\n\n<p>5. Firm&#8217; constitution copy, if any. <\/p>\n\n\n\n<p>6. Affidavit in Annexure-3 <\/p>\n\n\n\n<p>7. Site plan copy reflecting the\ndimensions <\/p>\n\n\n\n<p>8. One copy of the key plan showing the\nkey features in the neighbourhood site in question in addition to the zonal\nplan and part schematic plan reflecting the site.<\/p>\n\n\n\n<p>9. Affidavit in Annexure \u2013 5 serves as a\ndeclaration that affirms the legitimacy of the construction of premises in\nquestion.<\/p>\n\n\n\n<p>10. A rough schematic indicating the\nproposed installation of machinery <\/p>\n\n\n\n<p>11. List of machinery along with power\nrating. <\/p>\n\n\n\n<p>12. One copy of the production process <\/p>\n\n\n\n<p><strong><em>Note: MCD factory license in this\ncategory shall be granted only for the establishment allotted for industrial\/\ncommercial use by the Government land-owning agencies.<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Note: MCD factory license shall be issued\nfor operating factories on non-multi storey premises. But, in case of permitted\nflatted production facilities will be conferred to all sanctioned floors.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Registration of factories under the Factories Act, 1948 is a fundamental regulatory requirement. Every production facility that falls under the ambit of the said legislation needs to get registered and follow the underlying norms to stay compliant.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/factoring-regulations-amendment-bill-2020-introduced-in-lok-sabha\/\">Factoring Regulations (Amendment) Bill, 2020 Introduced in Lok Sabha\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Factory Act 1948 came into effect in the year 1940. Since then, it has been serving as the sole regulatory framework for production facilities in India. It mandates production-related facilities to get registered and comply with underlying norms. We will delve into the norms around the MCD factory license. This blog discusses the procedure, eligibility, [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":43453,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[484],"tags":[2353],"acf":{"service_id":"387"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7430,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43444"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=43444"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43444\/revisions"}],"predecessor-version":[{"id":67814,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43444\/revisions\/67814"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/43453"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=43444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=43444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=43444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}