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Labour Licence in Telangana - A Complete Compliance Guide under the Shops & Establishments Act, 1988

Labour Licence in Telangana – A Complete Compliance Guide under the Shops & Establishments Act, 1988

Step-by-step guide, process & pricing by Kanoons.

Obtaining a Labour Licence in Telangana is a crucial compliance step for any business operating under the Telangana Shops & Establishments Act, 1988. Whether you’re running a startup, retail outlet, IT firm, or professional office, registration under this Act ensures your establishment adheres to the legal standards relating to working hours, employee welfare, safety, and fair employment practices.

This guide by Kanoons Law & Tax Consultants Pvt. Ltd. explains every aspect of Labour Licence registration in Telangana — including the legal framework, process, documents required, penalties for non-compliance, and how Kanoons can help you secure your licence quickly and lawfully.

Importance of Labour Licence for Businesses in Telangana

A Labour Licence is not just a legal formality — it is proof of compliance with state labour laws. Under Section 3(1) of the Telangana Shops & Establishments Act, 1988, every employer must register their establishment within 30 days of commencement.

  • Working hours and rest intervals (Section 36)
  • Payment of wages and holidays (Section 28 & 29)
  • Health and safety standards (Section 37)
  • Maintenance of employee records (Section 63)

Failure to obtain this licence can result in penalties, prosecution, or closure orders issued by the local Labour Inspector.

Legal Framework Governing Labour Licence in Telangana

Labour Licence registration and compliance in Telangana are primarily governed by:

  • The Telangana Shops & Establishments Act, 1988 – regulates employment conditions, working hours, leaves, and other welfare measures.
  • The Telangana Shops & Establishments Rules, 1990 – provides the procedural framework for registration, renewals, and record-keeping.
  • The Code on Wages, 2019 – standardizes minimum wages and payment timelines.
  • The Occupational Safety, Health and Working Conditions Code, 2020 – mandates safe and healthy work environments.
  • The Bharatiya Nyaya Sanhita (BNS), 2023 – prescribes updated penalty provisions replacing older IPC-based offences.

The licensing authority under Rule 5 of the Telangana Shops & Establishments Rules, 1990, is the Labour Officer of the area, operating under the control of the Commissioner of Labour, Government of Telangana.

Eligibility Criteria for Labour Licence Registration

As per Section 2(10) of the Act, an “establishment” includes any shop, commercial office, hotel, theatre, or any place of public amusement or entertainment where trade, business, or services are carried out.

  • Any commercial or business establishment employing one or more persons must register.
  • The employer must be a citizen of India and of legal age (18+).
  • The premises must comply with zonal and building regulations.
  • If more than 10 employees are engaged, additional labour laws such as ESI and EPF may apply.

Documents Required

The following documents are generally required for registration under Rule 7 of the Telangana Shops & Establishments Rules, 1990:

  • Duly filled Form A (Application for Registration).
  • Proof of establishment – Rental agreement / Property tax receipt / Ownership proof.
  • Identity proof of employer – Aadhaar / PAN / Passport.
  • List of employees with designation, wages, and joining dates.
  • Trade Licence or Incorporation Certificate (for companies/LLPs).
  • Photograph of the business premises.
  • Payment receipt of prescribed registration fee (based on employee strength).

All documents can be uploaded through the official Telangana Labour Department portal: https://labour.telangana.gov.in

Step-by-Step Process to Apply for Labour Licence in Telangana

Step 1: Visit the Official Portal

Go to labour.telangana.gov.in and navigate to the “Shops and Establishments” section.

Step 2: Fill Application Form A

Enter details such as employer name, address, establishment type, employee count, and business nature.

Step 3: Upload Documents

Attach all required documents in the prescribed digital formats (PDF/JPEG).

Step 4: Pay the Prescribed Fee

Fees vary by employee strength (ranging from ₹100 to ₹2,500). Payments can be made online via treasury or net banking.

Step 5: Verification by Labour Inspector

The local Labour Officer may verify the documents and visit the establishment if required.

Step 6: Grant of Certificate of Registration

Upon successful verification, the Labour Licence (Registration Certificate) is issued in Form B, as per Rule 8, and is valid for five years unless otherwise notified.

Renewal, Amendment & Cancellation of Labour Licence

Renewal

As per Rule 9, applications for renewal should be submitted 30 days before expiry of the licence. The same process and fee structure apply.

Amendment

Under Section 5, if there is any change in ownership, employee strength, or nature of business, the employer must apply for amendment within 15 days.

Cancellation

The Labour Officer may cancel registration under Section 6 if false information was provided, or the establishment is closed. Employers must surrender the certificate upon closure of the establishment.

How Kanoons Can Help

At Kanoons, we simplify the complex legal and administrative procedures involved in obtaining and maintaining your Labour Licence in Telangana.

Our experts — comprising Advocates, Chartered Accountants, and Compliance Consultants — handle everything from start to finish:

We ensure your establishment remains 100% compliant with Telangana labour laws, helping you avoid penalties and legal risks.

💼 Pricing: Labour Licence registration service starts from ₹1,999 only, inclusive of consultation and filing support.

📞 Contact: +91 9000013560 | 🌐 www.kanoons.com

Post-Registration Compliances

✔ Display Licence: Exhibit the Labour Licence (Form B) prominently at the business premises.
✔ Maintain Records: Keep updated registers of employees, wages, attendance, and leaves.
✔ Working Hours: Ensure 8-hour daily and 48-hour weekly limits; pay overtime at double rate.
✔ Leave & Welfare: Provide statutory leaves, first aid, drinking water, and sanitation facilities.
✔ Report Changes: Inform the Labour Department within 15 days of any business change.
✔ Annual Return: File the prescribed Annual Return online each year on time.

Why Kanoons?

🌟 End-to-end Labour Licence registration under the Telangana Shops & Establishments Act, 1988
🌟 Online documentation, filing, and verification support
🌟 Renewal and amendment assistance
🌟 Labour law compliance audits and HR policy reviews
🌟 Representation before the Labour Department, if required

Contact us

Penalties & Legal Consequences

Failure to register or renew a labour licence is a punishable offence under Section 7 of the Telangana Shops & Establishments Act, 1988.

  • For first offence: Fine up to ₹10,000.
  • For subsequent offences: Fine up to ₹20,000 or imprisonment up to 3 months.
  • Obstruction of a Labour Inspector’s duty attracts penalties under Section 115 of the OSH Code, 2020.

The Labour Department may also issue closure orders or suspend operations for continued non-compliance.

Conclusion

Obtaining a Labour Licence in Telangana ensures your business operates within the legal framework of employment laws, protecting both employer and employee rights. By complying with the Telangana Shops & Establishments Act, 1988, you build credibility, avoid penalties, and create a safer, fairer workplace.

With Kanoons’ professional expertise, you can complete your Labour Licence registration quickly, affordably, and lawfully — ensuring peace of mind and long-term compliance.

Disclaimer

This article is published by Kanoons Law & Tax Consultants Pvt. Ltd. for informational purposes only and does not constitute legal advice. For specific compliance or representation needs, please consult our experts directly.

FAQ

Labour License | Frequently Asked Question 

Who needs to obtain a Labour Licence in Telangana?

Any shop, commercial establishment, or office employing even one employee must register under the Telangana Shops & Establishments Act, 1988.

How long is the Labour Licence valid?

The licence is valid for five years from the date of issue and must be renewed thereafter.

Can I apply for a Labour Licence online?

Yes. The Telangana Labour Department’s online portal (labour.telangana.gov.in) allows full digital submission, payment, and download of registration certificates.

What happens if I fail to renew my licence on time?

Failure to renew before expiry attracts penalties and may render your establishment illegal until renewed.

Do freelancers or home offices need registration?

Yes, if services are provided regularly and employees (even one) are engaged, registration under the Act is mandatory.

Can Kanoons assist with Labour Licence for multiple branches?

Absolutely. Kanoons provides centralised Labour Licence and Shops & Establishments registration for multiple branches across Telangana, ensuring uniform compliance.
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