A factory licence in Delhi is issued by the Labour Department's Directorate of Industrial Safety and Health (the Factories wing) to occupiers of manufacturing units in the National Capital Territory. Delhi is unusual because a licence is granted only to units located in a conforming industrial area, and the whole application runs online through the e-District Delhi portal. This page explains how the Delhi process works in October 2026, now that the OSH Code is in force but Delhi's own rules are still in draft.
| Governing law | Occupational Safety, Health and Working Conditions Code, 2020 (in force from 21 Nov 2025); Delhi Factories Rules, 1950 continue until Delhi's final OSH rules are notified |
|---|---|
| Authority | Directorate of Industrial Safety and Health (Factories), Labour Department, Govt. of NCT of Delhi |
| Apply on | e-District Delhi portal: service 'Registration and Grant of Licence under the Factories Act, 1948' |
| Location condition | Only units in Conforming Industrial Areas of Delhi (public utility services excepted) |
| Government fee | Rule 5 schedule: ₹100 to ₹20,000 per year, based on installed HP and maximum workers |
| Validity | 1, 5 or 10 years from the date of grant, as chosen and paid for |
| Typical timeline | Licence within about a month of a complete application and satisfactory inspection |
Who regulates factories in Delhi and which law applies now
Factory licensing in Delhi sits with the Labour Department of the Government of NCT of Delhi, through its Directorate of Industrial Safety and Health, headed by the Chief Inspector/Director (ISH). District Deputy Directors of Factories scrutinise applications and carry out inspections. This is a state-level licence; there is no central factory licence for private units in Delhi.
The four Labour Codes came into force on 21 November 2025. The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) replaced the Factories Act, 1948. However, Delhi published only draft Delhi Occupational Safety, Health and Working Conditions Rules, 2025 for public comment in late 2025, and final rules had not been notified at the time of our last review. Until they are, the savings clause of the Code and Section 24 of the General Clauses Act keep the Delhi Factories Rules, 1950 forms, fee schedule and procedure working. The e-District service is still labelled under the Factories Act, 1948.
In practice, you apply on the existing Delhi system today, while planning for the OSH Code thresholds and the registration-plus-licence structure that the final Delhi rules will bring.
When a Delhi unit needs a factory licence
Under Section 2(1)(w) of the OSH Code, premises are a factory if a manufacturing process is carried on with 20 or more workers using power, or 40 or more workers without power, on any day of the preceding twelve months. These limits doubled the old Factories Act thresholds of 10 and 20. Count all workers across shifts and relays on a day, not just the largest shift, and include contract workers engaged in the process.
A Delhi unit with 10 to 19 workers using power is no longer a 'factory' under the Code, but it is still an 'establishment' that will need registration under the OSH Code once Delhi's rules are final. Units that held licences under the old thresholds should review their headcount before deciding whether to renew or surrender.
- Manufacturing, assembling, repairing, packing or job-work units in Okhla, Wazirpur, Bawana, Narela, Mayapuri, Naraina, Jhilmil, Patparganj and other notified industrial areas
- Printing presses, garment and hosiery units, food processing kitchens supplying in bulk, and auto component units crossing the worker threshold
- Public utility services such as petrol pumps, CNG stations and DTC depots, which Delhi licenses regardless of location
- Existing licensees changing occupier, factory name, address, worker count or sanctioned load (amendment required)
The conforming area rule: Delhi's biggest hurdle
The Delhi Labour Department states that licences are granted only to factories in Conforming Industrial Areas of Delhi, and that factories cannot operate in non-conforming or residential areas. This flows from the Master Plan for Delhi, which allows industrial activity only in planned industrial estates, notified redeveloped industrial clusters and similar conforming zones.
Before spending money on drawings or fees, check that your plot lies in a notified industrial area or an approved industrial redevelopment cluster, and that your activity is not on the Master Plan's prohibited list. A rent agreement for a building in an unauthorised colony or a mixed-use street will not get you a factory licence, even if the electricity connection is industrial. The Delhi Pollution Control Committee applies the same conforming-area logic to consents, so both approvals fail together if the location is wrong.
Documents for a Delhi factory licence
The e-District service asks for scanned uploads rather than physical files. The list below follows the Labour Department's published FAQ, plus what scrutiny officers routinely ask for.
- ID proof of the occupier and the factory manager
- List of partners or directors with residential addresses, and proof of the occupier's status (director, partner or proprietor)
- NOC from other partners or Board resolution nominating the occupier
- Existing building plan of the premises in PDF
- Latest electricity bill showing sanctioned load (used to verify installed HP)
- Proof of occupancy: registered rent/lease deed or conveyance deed
- Flow chart of the manufacturing process, list of raw materials and list of installed machinery with HP
- DPCC consent to establish/operate (or white-category intimation) where applicable
- Health and safety policy, for factories carrying on hazardous processes
Fees under the Delhi Factories Rules schedule
Delhi's fee is fixed by the schedule below Rule 5 of the Delhi Factories Rules, 1950. It is an annual figure read off a grid of installed horsepower (sanctioned electrical load) against the maximum number of workers on any day in the year. If you choose a 5-year or 10-year licence, you pay the annual fee multiplied by the number of years. The e-District system calculates it automatically and the fee is not refundable, including when an application is rejected.
Amendments for change of occupier, address, name, worker count or HP cost ₹100 per change, and a duplicate licence costs ₹100. The draft Delhi OSH rules propose a separate registration fee by employee count (for example ₹2,000 up to 50 employees), but that is not payable until the rules are final.
Timelines, inspection and validity
If the department raises a query, Delhi gives only 3 days to upload the reply and documents; miss it and the application is rejected with the fee forfeited. After a complete application, an officer inspects the premises, and the licence is granted within about a month if the factory meets statutory requirements. The licence is digitally signed and downloaded from your dashboard; it is not posted.
Validity is 1, 5 or 10 years from the date of grant, as applied for. Older Labour Department pages mention calendar-year validity up to 31 December, which reflects the pre-online system. Surrender is mandatory if the factory closes or shifts out of Delhi.
Practical tips from Delhi filings
Most Delhi rejections are avoidable. These are the points we check before submitting.
- Make sure the occupier personally applies; the FAQ says applications by anyone else are rejected and the fee forfeited
- Match the HP you declare to the sanctioned load on the BSES/TPDDL bill; a mismatch triggers the 3-day query
- Keep the occupier's and manager's details consistent across MCA records, partnership deed and the application
- Choose a 5 or 10-year licence only if your worker count and load are stable, because increases need an amendment and differential fee
- Get the DPCC position (consent or white category) settled first; inspectors ask for it
- Track Delhi's final OSH rules: once notified, existing licensees will need to align with the new registration and licence forms
Step-by-step process
Confirm location and applicability
Check that the premises fall in a Delhi conforming industrial area and that headcount and power use make the unit a factory under the OSH Code thresholds.
Line up DPCC and building papers
Obtain DPCC consent or white-category status and keep the building plan, occupancy deed and electricity bill ready in PDF.
Register on e-District Delhi
The occupier creates a citizen login on the e-District Delhi portal and selects 'Registration and Grant of Licence under the Factories Act, 1948'.
Fill service details and upload
Enter factory, occupier, manager, HP and worker details, choose 1, 5 or 10 years, and upload the documents listed above.
Pay the auto-calculated fee
Pay online; the system computes the Rule 5 schedule fee for the years selected.
Answer queries within 3 days
Watch the dashboard and email; upload any clarification within the 3-day window to avoid rejection.
Inspection and download
Facilitate the inspection by the Deputy or Assistant Director of Factories, then download the digitally signed licence.
Government fees
Annual government fee under the schedule below Rule 5, Delhi Factories Rules, 1950 (selected cells shown; multiply by years chosen). Paid online and non-refundable.
| Item | Amount | Note |
|---|---|---|
| Nil HP, up to 20 workers | ₹100 per year | Lowest slab |
| Up to 10 HP, up to 20 workers | ₹200 per year | Typical small power unit |
| Above 10 and up to 50 HP, 21–50 workers | ₹600 per year | Common for small manufacturing units |
| Above 50 and up to 100 HP, 51–100 workers | ₹1,200 per year | Medium units |
| Above 100 HP, 101–250 workers | ₹4,000 per year | |
| Above 100 HP, above 1,000 workers | ₹20,000 per year | Highest slab |
| Amendment (each change) | ₹100 | Occupier, name, address, workers or HP |
| Duplicate licence | ₹100 | If original is lost |
Frequently asked questions
Can I get a factory licence in a residential area of Delhi?
No. The Delhi Labour Department grants factory licences only to units in Conforming Industrial Areas, and states that factories cannot run in non-conforming or residential areas. The only exceptions are public utility services such as petrol pumps, CNG stations and bus depots. If your unit is in a non-conforming area, you will need to relocate to a notified industrial area or an approved redevelopment cluster before applying.
Is the Factories Act still applicable in Delhi after the Labour Codes?
The OSH Code replaced the Factories Act from 21 November 2025. Because Delhi's OSH rules were still in draft at our last review, the Delhi Factories Rules, 1950 procedure and fee schedule continue through savings provisions, and the e-District service still carries the Factories Act name. Expect forms and fees to change once Delhi notifies its final rules.
How many workers make a unit a factory in Delhi now?
Under the OSH Code, 20 or more workers where power is used, or 40 or more without power, on any day in the preceding twelve months. Earlier the limits were 10 and 20. Count workers in all shifts and relays on the day, including contract workers. Smaller units may still need OSH Code establishment registration once Delhi's rules are final.
What is the factory licence fee in Delhi?
The fee comes from the Rule 5 schedule of the Delhi Factories Rules, 1950, based on installed horsepower and the maximum number of workers. It ranges from ₹100 a year for a non-power unit with up to 20 workers to ₹20,000 a year for a unit above 100 HP with over 1,000 workers, multiplied by the number of years you choose.
How long is a Delhi factory licence valid?
You can apply for a licence of 1, 5 or 10 years, counted from the date of grant, and pay the annual fee for each year. Any change in occupier, name, address, worker count or load during that period needs an amendment, which costs ₹100 per change plus any differential fee.
Who should sign the Delhi factory licence application?
The occupier must apply. For a company that is a director nominated by Board resolution; for a firm, a partner nominated with the consent of the others. The Labour Department FAQ states that applications by anyone other than the occupier are rejected and the fee forfeited, so consultants can prepare the file but the login and declaration belong to the occupier.
Do I need DPCC consent before applying for a factory licence in Delhi?
In most cases, yes. Delhi's licence procedure lists pollution consents from the Delhi Pollution Control Committee among the supporting documents, and inspectors check it. White-category units follow DPCC's simplified route. Applying for both together, after confirming the conforming area, avoids a situation where one approval holds up the other.
What happens if I do not reply to a query in time?
Delhi gives 3 days to upload the reply and documents asked for. If you miss it, the application is rejected and the fee is forfeited. You can apply again, but with a fresh fee and a new reference number, so keep the occupier's email and phone active during scrutiny.
Official sources
- Delhi Labour Department – FAQ: Grant of Licence under the Factories Act, 1948
- Delhi Labour Department – Fee schedule: registration, renewal and amendment of licence
- Delhi Labour Department – Procedure of grant of licence
- India Code – Occupational Safety, Health and Working Conditions Code, 2020
- Draft Delhi OSH and Working Conditions Rules, 2025 (gazette draft copy)
Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. Last reviewed 16 October 2026. Always confirm current rules and fees on the official portal before acting.