PAN, GST & Address Proof
Certificate of Incorporation / Shop Act
Details of contract agreement
Registration of Establishment under Labour Department
PAN, Aadhaar & Address Proof
Work Order/Contract Copy
Employee list with wages & joining dates
Security deposit challan (as per state norms)
Terms & Conditions
License requirement depends on nature and number of workers.
Charges exclude security deposit payable to the Labour Department.
Delay in compliance post-filing may attract late fees or rejection.
Client must ensure accuracy of contract and wage details.
State-specific rules may apply for inspection or renewals.
No refund once application is submitted to the department.
Labour License
Mandatory license for contractors employing 20 or more workers under the Contract Labour (Regulation & Abolition) Act, 1970.
Labour License is a statutory registration required under the Contract Labour (Regulation and Abolition) Act, 1970, for any contractor or organization engaging 20 or more contract workers. It ensures regulation of employment conditions, fair wages, and safety for contract laborers.
Both principal employers and contractors are required to register:
Principal Employer must register the establishment
Contractor must obtain Labour License
At Kanoons, we handle end-to-end Labour License registration for various states and central jurisdiction.
Why Choose Labour License? (Advantages & Disadvantages)
Advantages:
- Enables legal employment of contract workers
- Avoids labour law penalties and litigation
- Required for subcontracting in industries and projects
- Boosts credibility in B2B and tender ecosystems
- Protects welfare of workers and ensures safety standards
Disadvantages:
- Requires continuous compliance and record maintenance
- Non-compliance can lead to severe penalties or blacklisting
- Varying procedures across different states
Who Should Register an Labour License?
- Contractors employing 20 or more workers
- Businesses outsourcing manpower (e.g., housekeeping, security, factory workers)
- Principal Employers engaging contractors for ongoing work
- Applicable across industries: construction, IT, manufacturing, logistics, healthcare, etc.
- Entities operating under State or Central Labour Laws.
Documents Required for Labour License Registration
For Principal Employer:
- PAN, GST & Address Proof
- Certificate of Incorporation / Shop Act
- Details of contract agreement
- Registration of Establishment under Labour Department
For Contractor:
- PAN, Aadhaar & Address Proof
- Work Order/Contract Copy
- Employee list with wages & joining dates
- Security deposit challan (as per state norms)
Labour License Registration Process (Step-by-Step)
- Eligibility Check & Establishment Registration
- Document Collection & Compliance Advisory
- Online Application Filing on Labour Portal
- Fee Payment & Security Deposit
- Labour Inspector Verification (if required)
- License Issuance & Renewal Support
Kanoons ensures a hassle-free, 100% online Labour License registration process!
What’s Included in Our Labour License Registration Package?
- Establishment registration
- Contractor license application
- Government fee & security calculation
- Labour inspection assistance
- Renewal and compliance support
Post-Incorporation Compliances for Labour License
✔ Display of license at work premises
✔
Payment of minimum wages and timely salary
✔
Maintenance of attendance, wages, muster roll registers
✔
Regular reporting to Labour Commissioner
✔
Timely license renewal before expiry
Why Kanoons?
🌟 State/Central license guidance
🌟
Accurate classification of contractor/principal employer
🌟
Preparation of documents and challans
🌟
Labour portal filing and inspection support
🌟
Complete renewal and ongoing compliance advisory
Failure to meet Labour License obligations can result in severe consequences:
- Penalty up to ₹1,000 per worker
- Prohibition on contract work
- Seizure of contract operations
- Legal action by Labour Department
- Blacklisting in government tenders
Valuable insights to change your startup idea
FAQ
Labour License Frequently Asked Question
Who is required to get a Labour License?
Any contractor employing 20 or more contract workers in a single establishment must obtain a Labour License. Principal Employers must register the establishment.
Is Labour License required for short-term projects?
Yes, if the number of contract workers is 20 or more, even for temporary work, a license is mandatory.
How long is the Labour License valid?
The license is generally valid for 1 year, and must be renewed annually before expiry.
What is the penalty for not having a Labour License?
Operating without a Labour License can lead to fines, imprisonment, and suspension of work orders.
Can one Labour License cover multiple projects or locations?
No, a separate license is required for each establishment or project location.
How much is the security deposit for Labour License?
The security deposit is typically ₹90 per worker, but it may vary as per state rules and nature of employment.
Get Started Today!
Incorporate Your Labour License Now & Get Legal Compliance Support!
Limited-Time Offer
Get Your Labour License Registered at ₹999!
Take the first step towards building a legally recognized and protected business. With Kanoons, experience a hassle-free, fully online Labour License backed by expert legal and compliance support.
"Simplifying Law & Taxation – Your Compliance, Our Commitment."
Quick Links
Service Offerings
© 2025 Copyright. All Rights Reserved by Kanoons
Kanoons.com, owned and operated by Kanoons Law & Tax Consultants Private Limited, is your trusted partner for taxation, legal compliance, and business registration across India. Whether you are an individual, a startup, or a growing enterprise, we provide expert guidance to navigate complex financial and regulatory landscapes seamlessly. From income tax filing, GST registration, and business incorporation to responding to legal notices, handling corporate audits, and trademark protection, we ensure a hassle-free experience.
Our expert team assists in income tax and TDS filing, simplifying tax compliance for salaried individuals, businesses, and professionals. We provide startup registration, MSME certification, IEC code, FSSAI licenses, trade licenses, and corporate compliance solutions to ensure smooth business operations. Entrepreneurs and businesses can also rely on us for intellectual property rights (IPR), including trademark, copyright, and patent registrations, along with legal support for litigation, summons, and regulatory matters.
By accessing Kanoons.com, you agree to our Terms & Conditions, Privacy Policy, Refund and Returns Policy and Disclaimer. All legal services are provided by our panel of experienced advocates, chartered accountants, and tax consultants. The use of this website does not establish a client-attorney relationship. We ensure confidentiality and data protection in compliance with applicable laws.
The wordmark "Kanoons" and its logo are the exclusive property & registered mark of Kanoons Law & Tax Consultants Private Limited. Any unauthorized use, reproduction, or modification is strictly prohibited and subject to legal action.
For support, queries, or legal consultation, contact our expert team today and experience 100% compliance with accuracy and efficiency.
"We received our Telangana Labour License within a week. Kudos to the team."
Praveen Reddy Contractor