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Labour License

Startup Labour License

Labour License

Labour license is actually a registration that a contractor has got to take with the Labour Department for keeping or employing labour within his company. But it doesn’t mean, others don’t need to take a Labour License. to understand more about Labour License, we will bifurcate it into these categories:

1.Central Labour License

A) Principal Employer Labour License These are companies that issue tenders or companies that are getting to employ or keep contractors under themselves.
B) Contractor Labour License These are companies that work within a principal employer as a contractor or petty contractor.

2.State Labour License

A) Principal Employer Labour License These are companies that issue tenders or companies that are getting to employ or keep contractors under themselves.
B) Contractor Labour License These are companies that work within a principal employer as a contractor or petty contractor.

Who is Required to Register ?


A labor license is required under the Act for every vendor who has more than 20 employees at a registered site. The Contract Labour (Regulation and Abolition) Act applies to the following entities:

It applies to any establishment in which twenty or more workmen are employed on any day of the accounting year as contract labour.

It applies to any contractor who employs or who employed twenty or more workers on any day of the accounting year.

Also, it does not apply to the establishments if any work is performed in the intermittent nature.

It does not apply to the establishments if any work is not performed for more than one-twenty days in a year.

It does not apply to the establishments situated in the special economic zone(SEZ).

It does not apply to the establishments if any work is performed in the seasonal nature for more than sixty days in a year.

Labour License is done for two types of companies- for Proprietorship Labour License and for PARTNERSHIP/ PRIVATE LIMITED COMPANY.

List of documents required for Labour License.


PAN card of the owner / director or partner.

PAN card of the company/ partnership.

Aadhaar Card of the owner /director or partner.

Photograph of the owner /director or partner.

Electricity bill of the premises.

Letter of Authorisation for signatory.

Bank statement/ Canceled Cheque.

Bank statement/ Canceled Cheque.

Partnership Deed/ Certificate of Incorporation.

Letter of Authorization.


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