Updated on August 30, 2025 03:30:43 PM
A Labour Contractor License in Andhra Pradesh is a legal requirement for any contractor or business that hires 20 or more contract workers in a year. Companies must obtain this license under the Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) in order to guarantee lawful hiring, equitable wages, and worker welfare.
Section 7 of the CLRA Act requires the principal employer, or business using contract labor, to register the business, and Section 12 requires the contractor, or individual or organization supplying labor, to obtain a license. Hiring contract workers in Andhra Pradesh is prohibited without these registrations, and failure to comply may result in severe fines or legal action.
The state labor department's online portal has made it easier to obtain an Andhra Pradesh labor contractor license. Along with the relevant government fee and a refundable security deposit for each employee, contractors and employers must apply by submitting documents such as identification proof, company registration, worker details, contract copies, and photographs.
Businesses can maintain compliance with labor laws, foster client trust, and guarantee efficient workforce management by maintaining a valid Company Labour Contract Licence. Additionally, it safeguards workers' rights by guaranteeing equitable treatment and prompt compensation.
A labor contractor license is required of any company or contractor that hires individuals under contract for a project or business. It is issued under the Contract Labour (Regulation and Abolition) CLRA Act, 1970, and ensures that companies handle contract workers following applicable labor regulations. A company or contractor that hires 20 or more contract workers per year needs to obtain this license in order to operate legally in India.
The license ensures that workers obtain fair wages, safe working conditions, and all other legal benefits while protecting the company from penalties or legal problems. It also assists businesses in establishing a reputation and maintaining smooth operations free from legal oversight.
Businesses can now register for a labor contractor license more easily and quickly from any place, thanks to online registration for contract labor licenses.
A labor contractor license is required for any contractor, business, or company that hires 20 or more contract workers per year for any project, site, or business activity. This license ensures that businesses manage their workforces under labor laws and was granted under the Contract Labour (Regulation & Abolition) CLRA Act of 1970.
Industries that include manufacturing, construction, cleaning, security, and event planning commonly use contract workers. Any contractor or company in these industries must obtain a Company Labour Contract Licence to operate legally. This license safeguards firms from penalties and legal problems while defending employees' rights by ensuring fair compensation, safe working conditions, and on-time payments.
To apply for a Labour Contractor License in Andhra Pradesh, you need to submit the following documents during contract labour licence online registration
The online registration process for a contract labour license in Andhra Pradesh has made it easier to apply for a labour contractor license. Under the Contract Labour (Regulation & Abolition) Act of 1970, any contractor or company that employs 20 or more contract workers is required to obtain a Company Labour Contract Licence. Here’s how you can apply:
Register your establishment with the local labour department, if not already registered.
Visit the official state labour department portal and select the option for Contract Labour Licence Registration.
Fill out the application form (Form IV) with accurate details about the contractor, principal employer, and workers.
Upload required documents – identity proof, address proof, contract copy, worker details, and challan.
Pay the prescribed government fees and security deposit online as per the number of workers.
Submit the application and download the acknowledgment receipt.
Once verified, the labour department will issue the Labour Contractor License online.
The fees for a Labour Contractor License in Andhra Pradesh depend on how many workers you hire. As per the Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act), charges vary based on the number of workers and whether you are applying for a State or Central license.
| Workers | Contract Labour Govt. Fee ₹ | State Establishment Registration Fee ₹ | Central Establishment Registration Fee ₹ |
|---|---|---|---|
| 0 - 50 | ₹ 37.50 | NA | ₹ 150 |
| 51 - 100 | ₹ 150 | ₹ 1,800 | ₹ 300 |
| 101 - 200 | ₹ 300 | ₹ 4,800 | ₹ 600 |
| 201 - 400 | ₹ 300 | ₹ 7,200 | ₹ 1,200 |
| 400 - 800 | ₹ 375 | ₹ 9,000 | ₹ 1,500 |
Note: Professional Fee for Labour Contractor License in Andhra Pradesh starts from @5,000.
The aforementioned fees are exclusive of GST.
Obtaining a Labour Contractor License in Andhra Pradesh is mandatory for any contractor or business hiring 20 or more contract workers. Section 7 of the Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) requires the principal employer to register, and Section 12 requires the contractor to obtain a license. The online registration process offered by the state labor department is quick and easy. Businesses can lawfully hire and manage their workforce, stay out of trouble, and guarantee that their employees are treated fairly by paying the required government fee, depositing the refundable security amount, and submitting the necessary paperwork.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
According to the CLRA Act, any contractor or business that hires 20 or more contract workers in a year needs to get a license.
The Contract Labour (Regulation & Abolition) Act of 1970 governs the license.
While Section 12 is for labor-supplying contractors, Section 7 is for principal employers registering their business.
Applying online, submitting paperwork, and paying the fee and security deposit are all possible through the Andhra Pradesh Labour Department's website.
Required documents include identification, business registration, employee information, a contract, photos, and a fee challan.
If all the paperwork is in order, the license is typically granted in 7–15 working days.
Along with a refundable security deposit, the cost is contingent on the number of employees and whether you are a principal employer or a contractor.
Operating without a license can result in severe fines, legal action, and a prohibition on conducting business.
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