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Labour Licence Registration

Labour Licence Registration in India
Engaging contract labour? Get licensed first

Labour License Registration in India is mandatory for contractors employing 50 or more contract workers under the OSH Code, 2020. The new labour law framework has simplified compliance by increasing the worker threshold, introducing a unified licensing system, and allowing longer license validity periods.

We assist contractors, construction companies, manpower suppliers, factories, and service providers with complete Labour License Registration through the Shram Suvidha Portal and Labour Department. Our services include document preparation, application filing, department coordination, and compliance support for smooth approval.

Shram Suvidha Filed
5-Year Validity
Single License
PE + Contractor Bundled

950+

Labour licenses filed

All Major States

+ Central Sphere

7+

Years of Legal Expertise

CHOOSE YOUR PLAN

Get your labour licence at pocket-friendly prices

★ SENIOR LABOUR-LAW SPECIALIST LED
Single Plan
₹17,999
₹11,999
+ Govt. fees & GST extra
  • Eligibility + threshold mapping (50+ workers under OSH Code 2020)
  • Shram Suvidha portal account setup + DSC integration
  • Contractor License OR Principal Employer Registration (one filing)
  • Form V Certificate co-drafted — PE side + Contractor side
  • Worker schedule + wage register format (statutory)
  • Welfare facility audit — canteen, restrooms, creche, first-aid, drinking water
  • Government fee + security deposit computation
  • Filing on https://shramsuvidha.gov.in
  • Labour Department query handling
  • 5-year License Certificate / PE Registration delivery
  • 5-year compliance calendar + annual return reminders

Indicative Government Fees + Security DepositsAt Actuals

Per OSH Code 2020 + State Rules (or, in transition states, the existing CLRA Rules). Fees + deposits are billed at actuals and confirmed at filing.

FilingGovernment Fee IndicativeSecurity Deposit
Contractor License – per workerRs.20 – Rs.100 per worker (varies by State)Rs.30 – Rs.90 per worker
Principal Employer RegistrationRs.20 – Rs.100 per worker engagedNot applicable
License Validity5 YEARS (OSH Code 2020) / 1 year (CLRA in transition states)Refundable on surrender
Indicative total for 50-worker license~Rs.2,500 to Rs.5,000 fee~Rs.2,500 to Rs.4,500 deposit
Annual Return FilingNil (filing fee) / per State penalty if lateNot applicable
Amendment – Worker ScalingDifferential per-worker feeDifferential deposit

TERMS & CONDITIONS

By subscribing to the above plans, you agree to abide by our following additional terms and conditions

  1. Governing Law (2026 Reform): With effect from 21 November 2025 (notification) and 8 May 2026 (OSH Central Rules 2026 in force), the Occupational Safety, Health and Working Conditions Code, 2020 (Chapter XI - Contract Labour) GOVERNS Labour Licensing in India. The OSH Code 2020 consolidates and replaces the Contract Labour (Regulation and Abolition) Act 1970, the Inter-State Migrant Workmen Act 1979, the Building and Other Construction Workers Act 1996, and other allied legislations. In States where State Rules under OSH Code 2020 are NOT yet notified, the corresponding CLRA Act / ISMW Act / BOCW Act rules continue to apply during the transition.
  2. Applicability Threshold (Raised to 50): Under OSH Code 2020: (a) Every CONTRACTOR engaging 50 OR MORE contract labour needs a LICENSE. (b) Every PRINCIPAL EMPLOYER engaging 50 or more contract labour (through one or more contractors) needs REGISTRATION. The threshold is RAISED FROM 20 TO 50 under OSH Code 2020 - a key reform for small / medium operators. Engagements below 50 workers do NOT require license / registration under OSH Code (subject to State-specific carve-outs).
  3. License Validity (Now 5 Years): Under OSH Code 2020, Contractor License is valid for 5 YEARS (was 1 year under CLRA 1970). Renewal must be filed before expiry. Single License covers all the contractor's establishments. Principal Employer Registration is one-time (valid as long as the establishment is in operation, subject to amendments).
  4. Plan Scope: Our Rs.11,999 + GST plan covers EITHER ONE Contractor License OR ONE Principal Employer Registration in ONE State - end-to-end, including Form V Certificate co-drafting + welfare facility audit + Shram Suvidha portal filing + Labour Department query handling + license delivery + 5-year compliance calendar + 60-day senior-counsel helpline.
  5. Government Fee + Security Deposit: License fee + Principal Employer Registration fee + security deposit are levied PER WORKER engaged - exact per-worker amounts vary by State Rules under OSH Code (or, in transition states, under existing CLRA Rules). Indicative ranges: Fee Rs.20-Rs.100 per worker. Security Deposit Rs.30-Rs.90 per worker (refundable on surrender). Confirmed at filing.
  6. GST on Our Fee: All quoted prices are exclusive of GST @ 18%, charged at checkout.
  7. Welfare Facility Obligations: The Principal Employer + Contractor are jointly + severally responsible for providing welfare facilities to contract workers - canteen (50+ workers), restrooms, drinking water, first-aid box, creche (50+ women workers - reformed under OSH Code), and uniform compliance with Section 24 (welfare facilities) of OSH Code 2020. Welfare facility audit is included in the base plan.
  8. Penalty for Non-Compliance: Under OSH Code 2020 Chapter XIII (Offences and Penalties), engaging contract labour WITHOUT a valid license attracts penalty up to Rs.1 LAKH; repeat offence up to Rs.2 LAKH + imprisonment up to 6 months. The Principal Employer is jointly liable. Under CLRA Act 1970 (transition states): Section 24 attracts penalty up to Rs.1,000 + imprisonment up to 3 months.
  9. Refund Policy: Full refund of professional fee (less Rs.1,499 documentation handling) is available if the Shram Suvidha portal filing is not submitted within 7 working days from receipt of all required information + government fee. Government fees + security deposits already paid are non-refundable (security deposit is refundable on surrender per portal policy).
  10. Out-of-Scope Items: EPF / ESIC Registration (separate services - filed under Code on Social Security 2020), Professional Tax (state-specific), Standing Orders (Industrial Relations Code 2020), labour-court / labour-tribunal litigation, prosecution defence, minimum wage disputes, gratuity / bonus calculations, audit of wage payments, contract drafting between PE and Contractor, and welfare-facility construction / fit-out work are NOT included.
Labour Licence (CLRA) Registration by Legal Terminus

Legal Terminus Priority ⚖

Labour License Registration may look straightforward under the new OSH Code framework, but proper compliance involves much more than filing an application. Contractor details, Principal Employer documentation, Form V certification, worker strength calculation, and welfare compliance all play an important role in smooth approval and future inspections. With LT Priority, your Labour License Registration is handled by experienced labour-law professionals who manage the process carefully from documentation to final approval — helping you avoid delays, rejection, and compliance issues.

What you get

  • ⚡Priority application processing and faster filing support
  • 📑Proper drafting and verification of Form V and labour documents
  • 🧑‍⚖️Senior labour-law expert review before submission
  • 📅5-year compliance calendar with renewal and return reminders

Important Notes

  • REFORM ALERT: OSH Code 2020 raised the threshold from 20 to 50 workers, extended license validity to 5 years, allowed single license for all establishments, and consolidated CLRA + ISMW + BOCW under one umbrella. Many businesses below 50 workers earlier needing license are now exempted. We audit your worker count carefully - intra-day variations matter.
  • PRINCIPAL EMPLOYER + CONTRACTOR JOINT LIABILITY: If the contractor fails to pay wages or provide welfare facilities, the PRINCIPAL EMPLOYER bears the liability. Engaging an unlicensed contractor exposes the PE to the same penalty - up to Rs.1 lakh + repeat-offender Rs.2 lakh + imprisonment up to 6 months under OSH Code Chapter XIII. Always demand and verify the contractor's license + Form V chain.
  • TRANSITION COMPLEXITY: In States where State Rules under OSH Code 2020 are not yet notified, the existing CLRA Act 1970 + corresponding State Rules continue to apply during transition. We track State-by-State notification status and apply the right regime at filing.
  • Form V CERTIFICATE IS MANDATORY: Before a contractor can apply for License, the Principal Employer must issue Form V (Certificate by PE) confirming the engagement of contract labour. Our base plan co-drafts Form V from both sides (PE + Contractor) to ensure consistency and prevent downstream rejection.
Consult a Legal Expert
Labour Licence (CLRA) Registration illustration

Why You Need a Labour License

Labour License Registration is mandatory for contractors employing 50 or more contract workers under the OSH Code, 2020. The simplified labour law framework enables online registration through the Shram Suvidha Portal and provides longer license validity, helping businesses meet legal and workforce compliance requirements.

A valid Labour License is essential for contractors, construction companies, manpower suppliers, factories, and service providers to operate legally and secure government or corporate contracts. We provide end-to-end assistance with documentation, online filing, department coordination, and compliance support for hassle-free registration.

OSH Code 2020 - Contract Labour Reform: The Deep Dive

Here's how the 2026 Labour Code regime compares to the old CLRA Act 1970 regime:

ParameterOld CLRA Act 1970New OSH Code 2020
License threshold (workers)20 contract workers50 contract workers (RAISED)
License validity1 year (annual renewal)5 YEARS (extended)
License coverageSeparate license per establishmentSingle license for all establishments
Principal Employer RegistrationRequired under Section 7Required under Section 45
Welfare obligationsSection 16-19 (CLRA)Section 24 (OSH Code) - consolidated
Filing portalState Labour Dept (mostly offline)Shram Suvidha Portal (single window)
Inter-State Migrant WorkmenSeparate ISMW Act 1979Chapter XI - OSH Code (integrated)
Construction workersSeparate BOCW Act 1996Selected provisions in OSH Code + BOCW Cess continues
Penalty - Unlicensed EngagementUp to Rs.1,000 + 3 months prison (Sec 24)Up to Rs.1 lakh + 6 months prison (Ch XIII)
Joint liability of PEWage payment under Section 21Wages + welfare under OSH Code Section 17

Types of Labour Licence Registration in India

01

Contractor License - New (OSH Code 2020 Sec 47)

In Plan

Contractors engaging 50+ contract workers need a License from the appropriate Government (Central / State Labour Department). 5-year validity. Single license covers all the contractor's establishments. Filed on Shram Suvidha (https://shramsuvidha.gov.in). Form V from Principal Employer is a pre-condition.

02

Principal Employer Registration (OSH Code 2020 Sec 45)

In Plan

Every establishment engaging 50+ contract labour through one or more contractors needs Registration as Principal Employer. One-time registration (no periodic renewal; amendable as PE grows). Statutory basis: Section 45 of OSH Code 2020 (replaces Section 7 of CLRA).

03

Form V Certificate (PE → Contractor)

Included

Mandatory pre-condition for a Contractor to apply for License. Principal Employer issues Form V certifying the engagement, the work covered, the worker count, and the period of engagement. Often where mismatched filings derail - we co-draft Form V on both sides as part of the base plan.

04

Contractor License - Renewal (5-Year Cycle)

Add-On

Renewal before expiry of the 5-year license. Same Shram Suvidha portal, separate workflow. Late renewal attracts surcharge per State Rules. Our base plan includes 5-year calendar reminders; actual renewal filing is a separately-quoted add-on as the 5-year cycle elapses.

05

Inter-State Migrant Workmen (ISMW) - OSH Code Ch XI

Add-On Rs.8,500

Contractor engaging 5 OR MORE inter-state migrant workmen needs LICENSE specifically under the Inter-State Migrant Workmen provisions of OSH Code 2020 Chapter XI (consolidating the old ISMW Act 1979). Special welfare obligations + journey allowance + displacement allowance apply.

06

BOCW Cess + Registration (Construction)

Add-On Rs.10,000

For construction projects of value Rs.10 lakh+: Building and Other Construction Workers (BOCW) provisions apply - registration of establishment, payment of BOCW Cess at 1% of construction cost to the State BOCW Welfare Board, worker registration with the Board. Cess continues post-OSH Code 2020.

07

Amendment - Worker Scaling / Address / Activity

Existing licensees needing: scaling up worker count (more workers covered), address change, additional establishment addition, change in nature of work, partner / proprietor change. Filed on Shram Suvidha as amendment. 1 amendment within 12 months is FREE in the base plan; additional amendments at Rs.1,499 each.

08

License Surrender + Security Deposit Refund

Custom Quote

Voluntary surrender of License when contract operations end or worker count drops below threshold. Refund of security deposit on Labour Department clearance + settlement of dues + welfare facility surrender. Quoted separately based on portfolio scale.

Benefits of Labour Licence Registration in India

Labour licensing isn't just statutory tick-the-box - it's the foundation of a defensible contract labour engagement. Here's what matters in the 2026 Labour Code era:

Lawful Contract Labour Engagement

The Labour License is the express statutory authorisation to engage contract workers - without it, the engagement is unlawful and exposes both Principal Employer and Contractor to Chapter XIII penalties under OSH Code 2020 (up to Rs.1 lakh fine + imprisonment up to 6 months). With it, you operate clean.

Threshold Relief Under OSH Code (50 vs 20)

The 2026 reform raised the threshold from 20 to 50 workers. Many small / medium businesses earlier requiring license now sit BELOW the threshold and are exempt - a material compliance + cost relief. We audit your worker count carefully (including peak / seasonal / split-shift) to confirm threshold applicability.

5-Year Validity (vs 1-Year Renewal Treadmill)

Under OSH Code 2020, Contractor License is valid for 5 YEARS - vs annual renewal under CLRA 1970. One-time filing, five years of operation. The compliance discipline shifts to welfare facilities + annual returns + amendment-only updates.

Single License - All Establishments

Under OSH Code 2020 Section 47, a Contractor's License is valid for ALL establishments where the contractor places workers. Earlier (CLRA), separate licenses were required per establishment - a massive compliance burden for multi-location contractors. Now: one license, full coverage.

Institutional + Tender Eligibility

PSU contracts, government tenders, defence procurement, large corporate vendor onboarding, EPC contracts, FM (facilities management) contracts ALL demand evidence of valid Labour License at bid submission / onboarding. Without it, you cannot bid for or fulfil these contracts.

Defence Against Joint-Liability Exposure

The Principal Employer is jointly + severally liable for wage default + welfare gaps of the Contractor. Engaging an UNLICENSED contractor = direct exposure of the PE to penalty + back-wages + welfare claims. Holding both licenses (Contractor + PE) + verified Form V chain = strong defence in any compliance audit / inspection / dispute.

Steps for Labour Licence Registration in India

Eight steps. 15-20 working days end-to-end for License issuance in active OSH Code States; 20-30 days in transition States where CLRA Rules still apply.

1

Discovery & Role + Threshold MappingDay 0

30-min call with our labour-law specialist to confirm: your role (Contractor / Principal Employer), worker count (verify 50+ threshold per OSH Code 2020), nature of work, geographic spread (single state - our base plan covers one State), inter-state migrant workmen present (add-on), construction nexus (BOCW add-on), and OSH Code 2020 State Rules notification status for your State.

2

Shram Suvidha Portal Account SetupDay 1

Create FBO account on the Unified Shram Suvidha Portal (https://shramsuvidha.gov.in) - the Ministry of Labour & Employment's single-window for labour-law compliance. PAN + entity profile + authorised signatory + DSC configured.

3

Form V Certificate Co-DraftingDay 1-3

Principal Employer issues Form V certifying engagement of the Contractor - the work covered, the worker count, the period of engagement. This is a PRE-CONDITION for Contractor License. We co-draft Form V from both sides as part of the base plan to ensure the PE-Contractor chain matches at filing.

4

Documents Collection + Welfare PlanDay 2-5

Personalised checklist per role. Contractor: PAN, entity proof, Form V from PE, worker schedule + wage details, premises proof (camp / accommodation if any), welfare facility plan (canteen / restrooms / first aid / drinking water). PE: PAN, entity proof, list of contractors engaged, work order copies, premises proof.

5

Application Drafting + Fee ComputationDay 5-7

Contractor License application OR Principal Employer Registration application drafted with full annexures - worker schedule, welfare facility plan, premises layout, Form V chain. Government fee + security deposit computed per State Rules.

6

Government Fee + Security Deposit PaymentDay 7

You pay the government fee + security deposit via Shram Suvidha portal payment gateway (or via State portal where Labour Department has not migrated). Receipt captured.

7

Shram Suvidha Filing + Labour Department ProcessingDay 7-15

Application + annexures uploaded to Shram Suvidha. Acknowledgement + reference number captured. Labour Department / Licensing Officer reviews + processes. Any queries (Form V mismatch, wage schedule, welfare facility gap) addressed within 7 days.

8

License Certificate Delivery + 5-Year CalendarDay 15-30

Contractor License (5-year validity) OR Principal Employer Registration Certificate issued by the Licensing Officer / Designated Officer. We deliver: License / Registration PDF + welfare facility audit checklist + 5-year compliance calendar with annual return reminders + amendment-process map + 60-day senior-counsel helpline activation.

Documents Required for Labour Licence Registration in India

Six categories. Documentation is moderate - identity, premises, worker schedule, Form V, welfare plan, linked statutory registrations. We send a personalised checklist after the discovery call.

Applicant, Form V & Statutory

Identity, Form V chain & linked registrations

Applicant / Entity Identity

Identity of applicant / entity & authorised signatory
  • Applicant's PAN + Aadhaar (individuals / proprietors)
  • Entities: entity PAN + Certificate of Incorporation / Partnership Deed / Trust Deed / Registration Certificate
  • Authorised signatory's photograph + KYC + Board Resolution / Authorisation Letter
  • Digital Signature Certificate (DSC) for portal filing

Form V Certificate (PE → Contractor)

Mandatory pre-condition for Contractor License
  • Principal Employer issues Form V certifying the work covered, worker count, period and nature of work
  • Confirms PE readiness to engage the contractor
  • We co-draft Form V from both PE + Contractor sides for chain consistency

Linked Statutory / Tax Registrations

Separate / add-on registrations as applicable
  • GSTIN (for invoicing)
  • EPFO Code (Code on Social Security 2020 - separate filing)
  • ESIC Code (Code on Social Security 2020 - separate filing)
  • Professional Tax Registration (state-specific)
  • Construction (add-on): BOCW Cess registration with State BOCW Welfare Board
  • Inter-state ISMW (add-on): registration of recruitment activity in the home State

Premises, Workforce & Welfare

Address, worker schedule & welfare plan

Premises / Establishment Proof

Address of principal establishment / worksite
  • Address proof of the principal establishment - rent agreement OR ownership document
  • Latest property tax receipt / electricity bill (within 90 days)
  • Contractor: address proof of office + any workmen accommodation / camp
  • PE: address of premises where contract labour will be deployed

Worker Schedule + Wage Details

Required to fix the licensed worker count
  • List of contract workers - name, gender, age, address, designation, daily wages, working hours
  • Categorisation: skilled / semi-skilled / unskilled
  • Inter-state migrant workmen: home State + journey allowance details
  • Muster roll / wage register format (statutory)

Welfare Facility Plan

Section 24 of OSH Code 2020 + State Rules
  • Plan / layout of welfare facilities: canteen (50+ workers), restrooms / latrines / urinals (separate men + women)
  • Drinking water points, first-aid box, creche (50+ women workers), washing facilities, rest shelters
  • Premises layout drawing helpful

Labour Licence (CLRA) Registration — FAQs

Got questions? We've got answers — straight, no-BS, legally accurate.

Labour License Registration in India is a mandatory compliance for contractors and principal employers engaging contract labour under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020.

Under the new labour law framework:

  • Contractors engaging 50 or more contract workers must obtain a Labour License.
  • Principal Employers engaging contract workers through contractors must obtain Registration.
  • The registration helps ensure proper wage payment, worker welfare, safety, and legal compliance.

The new OSH Code, 2020 replaced the earlier Contract Labour (Regulation & Abolition) Act, 1970 and introduced major reforms:

  • Threshold increased from 20 workers to 50 workers
  • License validity increased from 1 year to 5 years
  • One license can cover multiple establishments
  • Filing shifted to the unified Shram Suvidha Portal
  • Simplified compliance structure for businesses

These reforms made labour licensing more streamlined and business-friendly.

You need a Labour License if:

  • You are a contractor engaging 50 or more contract workers
  • You supply manpower, labour, housekeeping, security, construction, facility management, or staffing services

Principal Employers engaging contract workers may also require registration under the OSH Code.

Yes. Labour law implementation is state-specific. While the OSH Code is central legislation, each state may issue its own rules and procedures. Some states have fully adopted the new system, while others are still transitioning from the old CLRA framework. We help you identify the correct process applicable in your state.

Form V is a certificate issued by the Principal Employer to the Contractor confirming:

  • Nature of work
  • Worker count
  • Work location
  • Contract duration

It is one of the most important documents for Labour License approval. Incorrect or incomplete Form V is one of the biggest reasons for rejection.

The registration process generally takes:

  • 15–20 working days in states with active online processing
  • 20–30 working days in states with inspection or manual verification

The timeline depends on document readiness and labour department processing.

Common documents include:

  • PAN & Aadhaar of applicant
  • GST Registration
  • Establishment proof
  • Form V Certificate
  • Agreement / Work Order
  • Employee details
  • Passport-size photographs
  • Digital Signature (DSC)

Additional documents may vary by state.

Under the OSH Code framework, Labour License is generally valid for 5 years. However, validity may vary in states that are still operating under transitional rules.

Operating without a valid Labour License may result in:

  • Heavy penalties
  • Labour department notices
  • Legal proceedings
  • Tender disqualification
  • Wage liability on the Principal Employer
  • Business and compliance risks

Timely registration helps avoid unnecessary legal complications.

Yes. Labour License, EPF, and ESIC are completely different compliances.

  • Labour License → Contract labour regulation
  • EPF → Provident Fund compliance
  • ESIC → Employee insurance compliance

A business may require all three depending on employee count and nature of work.

Yes. Under the OSH Code, the Principal Employer and Contractor share responsibility for:

  • Wage payment
  • Worker welfare
  • Safety facilities
  • Basic labour compliance

This is why proper documentation and contractor verification are very important.

Depending on worker count and state rules, businesses may need to provide:

  • Drinking water
  • Restrooms
  • Washing facilities
  • First-aid
  • Rest shelters
  • Canteen
  • Creche facilities (in applicable cases)

We help businesses understand these requirements before filing.

Under the new OSH Code framework, a single Labour License can cover multiple establishments of the contractor, subject to applicable rules and approvals. This reduces repeated licensing and simplifies compliance management.
Legal Terminus provides end-to-end professional support for Labour License Registration in India for both Contractors and Principal Employers. Our team assists with eligibility assessment, worker-threshold evaluation, Form V drafting support, document preparation, Shram Suvidha Portal filing, and coordination with the Labour Department for smooth processing of the application. We also help businesses understand welfare and compliance requirements under the OSH Code, 2020, including basic worker facilities and statutory obligations. From application filing to license approval, query handling, amendment support, and compliance guidance, we ensure the entire process is handled accurately, professionally, and within the applicable timelines.

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