Labour Licence
- ✔ Ensures compliance with the Contract Labour
- ✔ Protects contractors and employers from legal penalties and contract cancellation
- ✔ Strengthens credibility while applying for government tenders and contracts
- ✔ Demonstrates fair treatment and welfare of contract labourers
- ✔ Enables smooth operations and timely wage distribution through legal compliance
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Introduction
A Labour Licence is a statutory requirement under the Contract Labour (Regulation & Abolition) Act, 1970, issued by the State Labour Department to contractors employing 20 or more contract workers.
It ensures that the contractor or establishment maintains proper working conditions, pays wages on time, and provides essential facilities such as canteens, restrooms, and first aid for contract labourers. This license promotes lawful employment practices and worker protection in every organized sector.
Why You Should Register
A Labour Licence is legally mandatory for contractors and establishments hiring contract labour. It helps your business avoid fines, project delays, or suspension due to non
compliance with labour laws. It also assures clients that your organization adheres to all government-prescribed worker welfare norms — an important requirement for government projects, PSUs, and large corporates.
Without a valid Labour License, your contract or project can be legally terminated, and operations may be halted by the Labour Department.
Businesses Require This Registration
A Labour Licence is required for:
• Contractors supplying manpower to factories, offices, or government departments
• Construction and infrastructure companies employing contract labour
• Facility management, housekeeping, or security service providers
• Manufacturing or industrial units hiring temporary or contract workers
• Private and public sector establishments outsourcing workers through agencies
Eligibility
Documents Required
- 1PAN Card and Aadhaar Card of the proprietor
- 2Business address proof (electricity bill / rent agreement / NOC from owner)
- 3Registration certificate of principal employer under the CLRA Act
- 4Copy of work order / contract agreement with principal employer
- 5List of workers employed and nature of work
- 6Application Form-IV duly signed
- 7Proof of fee payment and security deposit challan
- 1Partnership Deed or LLP Agreement
- 2PAN of firm and partners
- 3Aadhaar and PAN of all partners
- 4Registered office proof (electricity bill / rent agreement / NOC)
- 5Copy of contract / work order with principal employer
- 6Principal employer’s registration certificate under CLRA
- 7Form-IV application and details of contract labour engaged
- 8Payment proof of government license fee and security deposit
- 1Certificate of Incorporation
- 2PAN Card of the company
- 3MOA & AOA / LLP Agreement (if applicable)
- 4Director KYC (Aadhaar, PAN)
- 5Registered office address proof (electricity bill / rent agreement / NOC)
- 6Copy of work contract or agreement with principal employer
- 7Principal employer’s registration certificate
- 8Application Form-IV and list of workers with job details
- 9Government fee and security deposit challan
For More Information
Validity
Penalty for Non-Compliance
Non-compliance with the Labour Licence requirements under the CLRA Act can lead to:
FAQs
Who is required to obtain a Labour Licence?
Any contractor employing 20 or more contract workers in an establishment must obtain a Labour Licence under the CLRA Act, 1970.
Is the principal employer also required to register?
How long does it take to obtain a Labour License?
Can a single licence cover multiple projects?
Can the Labour Licence be renewed online?
Need Help?
If you have any questions or need assistance with proprietorship registration, feel free to contact us.
Contact UsWhy Choose ARK Advisor for Proprietorship Registration?
ARK Advisor is your trusted partner for all business registration needs. Our team of experienced Chartered Accountants provides comprehensive support, ensuring a smooth and hassle-free registration process.
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