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Labour License

Labour License Registration is a statutory requirement under the Contract Labour (Regulation and Abolition) Act, 1970 for businesses engaging contract workers beyond the prescribed threshold (generally 20 or more workers).

Any contractor supplying manpower to an establishment must obtain a valid labour license from the respective State Labour Department. Simultaneously, the principal employer must obtain registration under the Act.

At Register My Firm, we assist contractors, builders, manufacturers, and service providers in obtaining Labour License Registration quickly and compliantly.

 What is a Labour License?

A Labour License is issued by the Labour Department to contractors employing contract workers in establishments.

It is required when:

✔ Contractor employs 20 or more contract workers (threshold may vary by state)

✔ Work is executed through a principal employer

✔ Applicable in factories, construction sites, infrastructure, manpower supply, etc.

 Who Needs Labour License?

You must obtain a Labour License if:

  • You are a contractor supplying 20+ contract workers.

  • You are executing work for factories, construction sites, SEZs, warehouses, or corporate establishments.

  • You are engaged in government tenders requiring labour compliance proof.

  • You provide manpower services (security, housekeeping, IT staffing, etc.).

(Note: Threshold may vary slightly state-wise.)

 Documents Required

For Contractor:

  • PAN Card

  • Aadhaar Card

  • Address Proof

  • GST Registration

  • Establishment Registration

  • Work Order from Principal Employer

  • Form V (issued by principal employer)

  • Employee details & wage structure

For Principal Employer:

  • Registration Certificate of Establishment

  • PAN & GST

  • Ownership proof / MOA & AOA (if company)

 Advantages of Labour License Registration

  1. Legal Compliance

  • Ensures your business complies with labour laws in India.

  • Protects the employer from legal penalties and fines.

 2. Permission to Hire Contract Labour

  • Allows contractors to legally employ contract workers.

  • Required for projects in factories, construction sites, and companies.

 3. Improves Business Credibility

  • Registered contractors appear more trustworthy to companies.

  • Many big companies require labour license before awarding contracts.

 4. Eligibility for Government & Corporate Contracts

  • Mandatory for government tenders and large projects.

  • Helps businesses participate in bids and contracts.

 5. Protection for Workers

  • Ensures workers get:

    • Proper wages

    • Safe working conditions

    • Welfare facilities

This reduces labour disputes and complaints.

 6. Avoids Legal Penalties

Without a labour license:

  • The contractor may face heavy fines

  • Business operations can be stopped by authorities.

 7. Better Labour Management

  • Helps maintain worker records and compliance

  • Makes labour management more organized.

Our process in four easy steps

1

Document collection & verification

2

Drafting & filing online application.

3

Payment of prescribed government fees

4

Labour Department scrutiny & Issuance of Labour License Certificate

Why Choose Register My Firm?

  • End-to-end documentation support

  • State-wise compliance expertise

  • Fast-track processing

  • Transparent pricing

  • Renewal & ongoing compliance support

FAQs :

A Labour License is a statutory registration required under the

Contract Labour (Regulation and Abolition) Act, 1970

It is mandatory for contractors employing contract workers in certain establishments.

A Labour License is required if:

• You are a contractor

• You employ 20 or more contract workers (threshold may vary by state)

• You are executing work for a principal employer

If unsure about applicability, we provide a compliance check.

Labour Registration – Required by the Principal Employer

• Labour License – Required by the Contractor

Both may be mandatory depending on your role.

Labour License is issued by the State Labour Department or the Central Labour Authority depending on the nature of the establishment.

In India, it is governed by labour authorities under the Ministry of Labour & Employment.

Generally 7–15 working days, subject to:

• Complete documentation

• Fee payment

• Department verification

We track and follow up until approval.

Form V is a certificate issued by the Principal Employer confirming that:

• The contractor is appointed

• Work is legally assigned

Without Form V, Labour License cannot be processed.

Non-compliance may result in:

• Monetary penalties

• Cancellation of contract

• Legal prosecution

• Work stoppage by authorities

Proper registration protects your business legally.

If worker count is below threshold (usually under 20), it may not be mandatory.

However, certain government projects require it irrespective of size.

We verify state-specific applicability before filing.

Yes.

Labour License is issued for a specific project duration and must be renewed if:

• Project continues

• Worker count increases

• New contract is awarded

We provide renewal and amendment support.

Validity depends on:

• Duration of contract

• Nature of project

• State regulations

It is not lifetime like IEC