I want to set up a manufacturing unit in New Delhi; how do I obtain a factory licence under the Factories Act and what are the requirements?

Detailed Legal Analysis

To obtain a factory license for setting up a manufacturing unit in New Delhi, you must comply with the provisions of the Factories Act, 1948, and the relevant rules framed by the Delhi government.

The key steps and requirements to secure a factory license are as follows:

• Determine Applicability: Ensure that your establishment qualifies as a "factory" under Section 2(m) of the Factories Act, 1948, which defines a factory as any premises where ten or more workers are employed in manufacturing processes.
• Prepare Necessary Documents: Gather essential documents including:
  • Proof of identity and address of the owner/directors
  • Site plan or layout of the factory
  • Technical details of the manufacturing process
  • Details of machinery and equipment
  • Consent for effluent discharge (if applicable)
  • Certificate of Incorporation (for companies)
• Application Submission: Submit the application for a factory license in Form 2, as stipulated under the Delhi Factories Rules, 1950, to the Chief Inspector of Factories, along with the required documents and fees.
• Inspection: Upon receiving the application, the Chief Inspector will conduct an inspection of the proposed factory premises to ensure compliance with safety and health regulations.
• License Issuance: If the inspection is satisfactory and all requirements are met, you will receive the factory license, which must be renewed periodically as per the provisions of the Act.

Key Compliance Requirements:

• Adherence to safety measures outlined in the Factories Act, including maintaining proper working conditions.
• Implementation of a first-aid facility and health services in accordance with Sections 41 and 42 of the Act.
• Maintaining registers and records as required under various sections of the Act, such as the attendance register and wage records.

In addition to the factory license, you may also need to obtain other registrations, like the Goods and Services Tax (GST) registration, Trade License from the local municipal authority, and registration under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, depending on the nature and scale of your manufacturing operations.