Labour licensing requirements

✅ Labour Licensing Requirements in India
Labour licenses are mandatory under Indian law when businesses employ a significant number of workers, especially contract laborers, and are regulated under the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act). Here’s a comprehensive guide:

🔹 WHO NEEDS A LABOUR LICENSE?
1. Principal Employer
Must register if:

Employing 50 or more contract workers (in some states, the threshold is 20 workers).

Engaging contractors who supply contract labor.

2. Contractor
Must obtain a labour license if:

Employing 20 or more contract workers (in any day of the preceding 12 months).

Operating across construction, security, housekeeping, facility management, etc.

📄 DOCUMENTS REQUIRED (Common for Both)
Document Principal Employer Contractor
PAN Card ✅ ✅
Address Proof ✅ ✅
Certificate of Incorporation ✅ ✅
EPF & ESIC Registration ✅ ✅
Work Order / Agreement ✅ ✅
Form V (from Principal Employer) ❌ ✅
Form IV (Application for License) ❌ ✅
Worker List with Wages & Duties ✅ ✅
Digital Signature Certificate (DSC) ✅ (sometimes) ✅

💼 LABOUR LICENSE PROCESS (for Contractors)
Step-by-Step:
Obtain Form V from Principal Employer.

Register on the State Labour Portal (e.g., Maharashtra: lms.mahaonline.gov.in).

Fill Form IV (License application).

Upload documents (PAN, Form V, work order, PF/ESIC).

Pay fees:

License fee (varies by number of workers).

Security deposit: ₹500 per worker.

Submit application online or offline.

Track & download license upon approval.

💰 FEE STRUCTURE (May Vary by State)
No. of Workers License Fee (Approx.) Security Deposit (₹500/worker)
Up to 20 workers ₹250 ₹10,000
21–50 workers ₹500 ₹25,000
51–100 workers ₹1,000 ₹50,000
101+ workers ₹2,000+ ₹50,000+

⏳ VALIDITY AND RENEWAL
Valid for 1 year; renewable annually.

Renewal must be applied 30 days before expiry.

Similar process as initial application.

⚠️ PENALTIES FOR NON-COMPLIANCE
Fines up to ₹1,000 per worker.

Prosecution and blacklisting from government tenders.

Cancellation of license and contract.

📌 STATE-WISE VARIATIONS
Rules, forms, and fees vary slightly by state.

Some states have integrated Labour Management Portals (e.g., UP, Maharashtra, Karnataka).