Various Licenses Required to Set Up a Factory in Delhi

This Presentation will apprise you of various licenses that are required to be approved by the competent authorities in Delhi. The licenses in this ppt will include Factory Plan Approval, Factory License, DPCC Certificate (Orange category), Employee State Insurance Registration, Fire Safety Certificate/NOC and Employee Provident Fund. All these are New Delhi oriented and anyone who needs to obtain any of these certifications can refer to this ppt and can share your suggestions.

1. This power point presentation gives you a detailed idea as to
requirements of various compliances and procedure to be followed in
order to secure following licenses and registrations:
•Factory Plan Approval
•Factory License
•DPCC Certificate –Orange Category (along with CTE and CTO)
•Employees’ State Insurance Registration
•Fire Safety Certificate/NOC
•Employees’ Provident Fund
There are various forms which needs to be filed for these approvals,
which enables the applicant to understand the process in a complete
manner. The purpose of attaching them is to avoid any mandatory
requirement lapse. Also minor defects will be rectified (if any).

2. Requisites for Factory Plan Approval
in Delhi
•For a factory to be setup in New Delhi including industrial
areas and special economic zones (SEZ).
•The statue applicable to obtain Factory plan/building are
central act of Factories Act, 1948 and Municipal law of Delhi
Factories Rule 1950.
•Provisions have been slated under section 3A of Delhi
Factories Rules, 1950.

3. How to Apply for Approval
•The application for approval of building plan by Chief
Inspector of Factories/Director (ISH) is required to be
submitted online at the website of Municipal Corporation of
Delhi (www.mcdonline.gov.in)
•The application is required to be submitted online at the
abovementioned website under the Single Window Clearance
System in light of Ease of Doing Business through common
application form/system.

4. Checklist of Documents for Approval
Foremost, prior permission has be obtained from the Administrator or the
Chief Inspector of Factories in writing.
As per Rule 3A of the said Rules, application is to be submitted in Form1
with the following documents:
1.Flow chart of the manufacturing process supplemented by a brief
description of the process in its various stages.
2.Plans in PDF format drawn to scale showing the following details in
accordance with the provisions of Rule 3A & Rule 61 of the Delhi
Factories Rules, 1950 read with Section 38 of the Factories Act, 1948:-
a. The site of the factory and immediate surroundings including
adjacent buildings and other structure, roads, drains etc.
b. The plan and elevations and necessary cross–sections of the various
buildings indicating all relevant details relating to natural lighting,
ventilation and means of escape in case of fire. The plans shall also
clearly indicate the plant and machinery, aisles and passage ways

5. 3.Such other particulars as the Chief Inspector may require.
If the Chief Inspector is satisfied that the plans are in consonance with the requirements of
the Act he shall, subject to such conditions as he may specify approve them by signing and
returning to the applicant one copy of each plan; or he may call for such other particulars
as he may require to enable such approve to be given.
Procedure for Approval
i.The application received online in the CIF dashboard at the MCD portal shall be
scrutinized by CIF/Director (ISH).
ii.The safety provisions such as water provision exclusively for fire fighting and means
of escape in case of fire i.e., alternate emergency staircase with dimensions in
accordance with Rule 61 of the Delhi Factories Rules, 1950 read with Section 38 of
the Factories Act, 1948 and natural lighting and ventilation shall be checked in
accordance with relevant rules of the Delhi Factories Rules, 1950.
iii.The plan shall also be checked whether the plants and machinery, aisles and passage
ways are clearly indicated in accordance with relevant rules of the Delhi Factories
Rules, 1950.
iv.If the building plan and manufacturing process are inconsonance with the provisions
of said Act and Rules, the approval will be granted online.

6. Time Frame for the Approval
•Building plan shall be approved or rejected within fifteen working days from the
date of receipt of application in the dashboard of CIF.
•In case the plan is approved, the duly signed approval letter by the Chief Inspector
shall be uploaded on the MCD website within 15 days
•Or else it will deemed to be approved on the sixteenth day (if not rejected).
•NOTE:No fees is required to be paid at this stage.

8. Factory License/Registration
•The provisions mentioned in Rule 4 and 5 of the said
Rules are to be complied with for granting/registering a
license for factory.
•An occupier/owner has to apply for granting of a factory
license to the Chief Inspector of Factories in triplicate in
the form No. 2.
•There is a fees specified in the schedule of Rule 5, which
is prescribed for one year. But if the prospective license
holder wishes to obtain the license for a period of more
than 1 year, then such fees shall be multiplied with the
number of desired years.
•The maximum period for such purpose can go upto5
years.

9. Fees for the grant of license for a factory for one year
(As prescribed in Rule 5 of the Delhi Factories Rules, 1950)
NOTE: In case of rejection of the application, the fee shall be refunded.

10. Pointers for Registration of Factory License
•A license can be granted to a factory premises engaged in
“manufacturing process” employing 10 or more workers
with the aid of power or, 20 or more workers without the
aid of power.
•Running a “factory” without registration and grant of
license is a punishable offence (One Lakh fine or Two Years
imprisonment or both as per section 92 of the Factories
Act, 1948).
•Running a “factory” without registration and grant of
license is a punishable offence (One Lakh fine or Two Years
imprisonment or both as per section 92 of the Factories
Act, 1948).

11. How to Obtain License
•An occupier of a factory is required to obtain a
license under the provisions of Rule 4 of the Delhi
Factories Rules, 1950.
•The occupier is required to get himself registered
through “Citizen Registration Form” available at e-
District Delhi portal.
•The occupier 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.

12. Essential Documents for Factory License
The following documents are required to be uploaded:-
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.

13. Procedure Followed by the Department
•TheAllonlineapplicationsarescrutinizedandincaseofany
defectsamewillbecommunicatedtotheapplicantonline,
pointingoutthedefects.
•Iftheapplicationiscompleteinallaspects,thefactory
premisesshallbeinspectedtoadjudgesuitabilityfor
registrationandgrantoflicense.Iffactoryconformstothe
statutoryrequirements,thelicensewillbegrantedwithina
month.
•Incaseanydocument,informationissoughtfromtheapplicant,
within03daysthereplyalongwithrequireddocumentsshould
beuploadedbytheapplicant.Otherwise,theapplicationshall
berejectedandfeeshallbeforfeited.
•Thefactoryshouldbelocatedinconformingindustrialareaof
Delhi.
•Adigitallysignedlicensecanbedownloadedfromthe
dashboardoftheapplicant.

15. Delhi Pollution Control Committee
License Registration
What is DPCC License Registration?
•DPCC issues a License called DPCC License which is a No
Objection Certificate and it assures that the aimed/existing
business entity being set up will not create any harm to the
environment or society.
•For change in process or setting up of industries, an outline
has been made which mandates the requirement to get the
“No objection Certificate” i.eNOC from the board first.
•Delhi Pollution Control Committee Consent /NOC/CTO/CTE
Delhi Pollution Control Committee Consent or commonly
known as NOC, CTO, CTE or DPCC certificate.
•All the industries falling under the green, orange, and red
category have to apply for CTO and CTE. The validity period for
CTE varies from 1 -7 years. Additionally, the CTE for the red
and orange category is 5 years and 10 years for green category
industries.

16. CTO and CTE
•Consent to Operate (CTO) -A CTO has to be acquired by an
industry from the State Pollution Control Board (SPCB) by the Air Act,
1981 and the Water Act, 1974, before the start of it’s production
activities.
•For this, an application in the designated format has to be made to
the SPCB, followed by the relevant fee and the related documents.
•The moment all the important compliances have been done, the
industry will be given the CTO.
•Consent to Establish (CTE)-COE has to be taken by the
industry from the SPCB by the Water Act, 1974 and the Air Act, 1981,
before beginning the development of activities on site. For this, an
appeal in the designated format has to be done to the SPCB, followed
by the appropriate fee and the applicable documents.
•The COE shall be given once the officials from the SPCB examine
the site and evaluate the industry’s environmental management
system.

17. Orange Category of DPCC
•Industries carrying out activities having a
pollution record of 41 to 59 fall under the
orange category.
•Some of the orange category industries are into
acids and chemicals, electrical motors, paints
and varnishes, plastic dye, PVC compounds,
textile mills, x-ray machines etc.
•All the industries falling under this category
have to present the consent certificates before
setting and operating the industry.

18. List of Documents required to obtain
DPCC Certificate for Orange Category
•Pan Card of the entity that can be a firm or company
•Pan card of the candidate
•Aadhaarcard of the candidate
•Electricity bill, Maintenance bill, Water bill and CETP bill
•CA license for investment in plant and machinery & land
and building
•Project Report
•Undertaking in the prescribed format with an
Authorisationletter
•Number of employees in the factory
•DG, Stack and Trade Effluent information (if any)

19. Attachments
•Form for obtaining DPCC certificate for Orange category;
•Documentation requirement for CTE and its consent format;
•Documentation requirement for CTO and its consent format;
•Detailed fee structure pertaining to CTE and CTO for various categories.
•Performa were fetched from
https://www.dpcc.delhigovt.nic.in/uploads/sitedata/pdf/ORANGE_FORM_N
EW_-1-.pdf
NOTE: Attachment containing details for above requirements in the most comprehensive
form can be referred for perusal.

21. Fire NOC
•Rule 61A of the Delhi Factories Rules, 1950 provides for
fire safety regulations which are to be observed at all
times.
•It is also mandatory to obtain a Fire Safety Certification
from the fire department of Delhi. Failure will attract
penalties and even revocation of factory license.
•For the buildings specified under Rule 27 of Delhi Fire
Services Rules 2010, NOC is required at two stages.
a) The first stage is prior to construction of building
wherein building plans are approved and fire safety
recommendations are issued.
b) The second stage is after the construction of building
before commencing of occupancy. These shall be
verified and Fire Safety Certificate (FSC) shall be issued.

22. Procedure for Obtaining Fire Safety
Certificate
•An application under Rule 35(2) for the grant of fire
safety certificate shall be made to Director in Form ‘I’ in
First Schedule of Delhi Fire Rules, 2010.
•The Application has to be submitted with a certificate
from the architect and owner/occupier that all the fire
safety measure have been incorporated in the
building/premises.
•A team of fire officers shall conduct an inspection on
availability and operability of the fire measures which
shall decide the grant or refusal of the certificate.
•In case of rejection, a fresh application has to be made
by the owner/occupier under Rule 35(2).

23. Duration and Renewability
•The certificate shall be valid for a period of 3
years (for factories) subject to renew.
•It shall be renewed under Rule 37 by filing
form Iand applying to the Director, Delhi Fire
Services.

24. NOC Requirement
•2 Sets of Building Plans through Building Authority.
•The establishment needs to comply with all the bye laws given
in Delhi Building Bye Laws Related to Fire. They are mentioned
hereunder:
https://dfs.delhigovt.nic.in/content/delhi-building-bye-
law-related-fire
•Model of the Building.
•Check List Certified by the Architect.

25. Questionnaire
In Addition to it, a questionnaire needs to be answered in a form of document consisting of following
details:
•Name of the building
•Address of the Building
•Name and Address of builder/promoter
•Name and Address of owner/occupiers of Individual Flats.
•Plot Area
a. Title
b. Land use (in case of residential building Indicate no. of dwelling units)
•Covered area (at grade level)
•Height of the building
•(A) Overall height (from grade level)
(B) Whether set back areas are conforming to unified building bye-laws 12.4(b)
•(A) Number of basements (Please Indicate level below grade in each case)
(B) If basement extends beyond the building line, please indicate the load bearing strength of the
roof of basement.
(C) Area of basement
(D) Whether any piazza is proposed? If so, details of the level of piazza and ramps etc. be indicated
•Number of Floors (including ground floor)

26. •Number of Floors (including ground floor)
•Occupancy (Use-please mention separately for basement & floors)
•Covered area of typical floor of bldg. Blocks.
•Parking areas (please give details)
•Details of surrounding property features
•Approach to proposed building, width of the road and connecting
roads, if any
•Please give details of water supply available exclusively for fire fighting.
•Has wet riser(s) been provided? If so, please indicate the number of
risers and internal diaof each.
•Has any down comer been provided? If so, please give details.
•Please indicate the present arrangement for replenishment of water for
fire fighting.
•Is a public or other water storage facility available nearby? If so, please
give the capacity and distance from your building, also please indicate if
it is readily accessible.
•And other related questions. For the complete exhaustive
questionnaire, Click here.

28. ESIC Registration
•ESI or employees' state insurance is one of the renowned
social security schemes which was introduced by the Central
government of India.
•If any company in Delhi failed to register their organization
under this act then they are bound to face the penal action
within a certain time limit. ESI OR Employee state insurance is
a self-financing security scheme and the health insurance
plan for the employees.
•Registration of employers under ESI Act is fully online,
without requirement of submission of any physical
application documents either before the registration or after
it.
•The employer registration is totally online and on real time
basis. No manual intervention / approval is required for
registration.

29. •Minimum Number of Employees required for
registration of Establishment in Delhi is 10.
•PDF form No. 1 is provided with the attachment.
Please refer.
•As per the ESI Act 1948, any employee earning
less than 15,000 every month, he or she needs to
contribute 1.75% of the payment to the ESI.
Whereas the company will pay 4.75%.
•With the increasing accessibility of internet ESI
registration in Delhi has been made very easy. I
saves lots of time and effort.

30. Documents Required for ESIC
Registration in Delhi
Following documents required for ESIC registration in Delhi:
•Registration certificate got either under the Shops and
Establishment Act or Factories Act
•Partnership deep in terms of partnership and registration certificate
in terms of the company
•Articles of Association and MOA or Memorandum of Association
•List of employees works in the company
•PAN Cardof the Business, also Employee's PAN card also needed
•Employee compensation details
•A canceled chequeof the company Bank accounts for bank details
•Board of directors list of the company
•Shareholders list of the company
•Attendance register of the company is also needed.

31. Procedure
•Application can be made online at ESIC portal.
•Submit the employer's registration Form-1 (attached).
•After verification, an unique 17 digit registration number
will be allotted.
•Once you receive the 17 digit number, your ESI filing will
be completed.
•Employees who are registered under the ESI scheme will
get an ESI card once you submit the form along with the
employee’s photos and details of the family.
•After providing all the necessary details, you will be
advised to visit the ‘Payment of Advance Contribution
Page’. Now click on the ‘Pay Initial Contribution Link’ to
make the advance payment for six months.
Registration is permanent in the case of employee's addition intimate the ESI.

33. Provident Fund (PF)
•Employees Provident Fund (EPF) is a scheme
under the Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952.
•It is regulated under the purview of the
Employees’ Provident Fund Organization (EPFO)
•Any organization engaging20 employees or more
are required to register under the EPFO as per
our constitutional framework.
•Basically, EPF is normally like a benefit to an
employee during the retirement provided by the
organization.

34. Applicability of EPF Registration for
Employers
•EPF registration is mandatory for all establishment:
•which is a factory engaged in any industry having 20 or more
persons, and
•to any other establishment employing 20 or more persons or
class of such establishments which the Central Government
notifies.
•All the employees will be eligible for a PF from the
commencement of their employment and the responsibility
of deduction & payment of PF lies with the employer.
•The PF contribution of 12% should be divided equally
between the employer and employee. The employer’s
contribution is 12% of the basic salary. If the establishment
has employed less than 20 employees, the PF deduction rate
will be 10%.

35. Documents for EPF Registration
Only a registered establishment is eligible for PF benefits.
1. Employees UAN no. is mandatory
(For UAN no. of employees-PAN card, AadharCard and Bank Details of all
the employee is necessary.)
2. Application form
3. Digital signature of authorized person
4. Copy of pan card of company and moa of co. / partnership deed
5. Copy of residence proof and pan card of all directors / partners
6. List of employee
a) Name of employees
b) Date of birth of employee
c) Date of joining of employee
d) Fathers name of employee
e) Fathers date of birth
f) Family detail :-mothers name of employee
g) Mothers date of birth
h) Wife name of employee
i) Wife date of birth
j) Children name of employee
k) Children date of birth

36. 7. Month wise detail of employee
8. Copy of two work order
9. Copy of service tax certificate/sale tax/ieccode (if any)
10. Electricity bill with rent agreement & nocfrom landlord
11. Board resolution
12. Four copy of moa
13. Four cancelled chequeand bank statement
14. 1st purchase bill/ sale bill
15. Nature of business
16. Wages and attendance register
17. Shop & establishment certificate
18. Email id of company
19. Landline no and mobile no of company
Please refer the Form attached.

37. THANK YOU
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