Updated on August 30, 2025 03:19:48 PM
Any company or contractor that hires workers on a contract basis must have a labor contractor license. Under the Contract Labour (Regulation & Abolition) Act of 1970, you must obtain a Company Labour Contract Licence in order to employ contract labor lawfully and stay out of trouble. This license guarantees that your company complies with all labor laws and offers workers safe working conditions, fair compensation, and other benefits.
With the growing demand for workforce outsourcing, getting a Contract Labour Licence Online Registration has become simple and quick. Businesses can register easily through the online process, which guarantees adherence to legal requirements. Regardless of the size of your company, if you hire 20 or more contract workers annually, you must get this license.
By demonstrating that your company runs morally and legally, a valid labor contractor license also helps you gain the trust of customers and government agencies. It helps you efficiently manage your labor operations, protects your workforce, and stays out of trouble with the law.
It's simple to apply online for a company labor contract license; just send in the necessary paperwork, pay the required fees, and you'll be approved promptly. You can save time and effort by registering even more quickly with professional help.
Businesses or contractors who employ people under contract for any project or business must have a labor contractor license. It guarantees that employers manage contract workers under applicable labor laws and is issued under the Contract Labour (Regulation and Abolition) Act, 1970. To operate lawfully in India, a business or contractor that employs 20 or more contract workers annually must get this license.
The license shields the employer from fines or legal issues while guaranteeing that employees receive fair compensation, secure working conditions, and all other legal benefits. Additionally, it helps companies maintain seamless operations free from legal checks and establish credibility.
Online registration for contract labor licenses has made it simpler for businesses to apply for a labor contractor license today, enabling them to do so swiftly and from any location.
Any contractor, company, or business that employs 20 or more contract workers annually for any project, site, or business activity must have a labor contractor license. This license, which was granted under the Contract Labour (Regulation & Abolition) Act of 1970, guarantees that companies manage their workforces by labor laws.
Contract workers are frequently used in sectors like manufacturing, construction, housekeeping, security, and event planning. To operate lawfully, any contractor or business in these industries needs to obtain a Company Labour Contract Licence. By guaranteeing equitable pay, secure working conditions, and on-time payments, this license protects employees' rights while shielding employers from fines and legal issues.
If state labor laws or certain government projects require it, even companies with fewer than 20 employees may need this license. Applying is now quick and easy thanks to the availability of Contract Labour Licence Online Registration.
To apply for a Labour Contractor License, you need to submit the following documents during the contract labour licence online registration:
The online registration process for contract labour licenses 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 India 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 starts from @5,000.
The aforementioned fees are exclusive of GST.
Any contractor or company that hires 20 or more contract workers must obtain a labor contractor license. It protects workers' rights, guarantees adherence to the Contract Labour (Regulation & Abolition) Act, 1970, and shields your company from fines. Getting a company labor contract license is now quick and easy thanks to the online registration process. You can manage your workforce legally and gain the trust of authorities and clients by completing the registration and submitting the necessary paperwork. To guarantee seamless, law-abiding, and compliant operations, get your license now.
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.
For companies or contractors employing 20 or more people under contract, a labor contractor license is a legal permit that guarantees adherence to labor regulations.
According to labor law, any contractor or business that hires 20 or more contract workers annually must obtain a Company Labour Contract Licence.
It guarantees equitable pay, secure working conditions, adherence to the law, and shields companies from fines and litigation.
By submitting paperwork and paying fees through the state labor department portal, you can apply for a contract labor license online.
Proof of identity, proof of address, proof of company registration, a copy of the contract, employee information, photos, and a challan are required to pay the fee.
Depending on the processing time of the state labor department, it typically takes 7 to 15 working days.
Yes, even though state laws and costs may vary, it is required for contractors employing more than 20 people throughout India.
Operating without a license can result in steep fines, legal action, and the inability to carry on with your business.
Speak Directly to our Expert Today
Reliable
Affordable
Assured
Industries Served by
Professional Utilities
Apparels
Footwear
Furniture
Gems and Jewellery
Tourism & Hospitality
Consumer Electronics
Chemicals
Telecom
Oils & Gas
Hotel
Railways
Liquor
Health & Medical
Food Processing
Dangerous/ Haz. Goods
Tea & Coffee
Capital Goods
Recycling
Rubber
NGOs
Silk
Handloom
IT & BPM
Steel
Automobile
Tobacco
Constructions
Call us on
+91 9958881762
[Mon - Sat, 10am - 7pm]
Write to us
804,8th Floor, Bhandari House- 91, Nehru Place, New Delhi 110019
Reliable
Affordable
Assurity
They've been very helpful in our registration with ICEGATE. It was a small thing with a small amount paid which somehow escalated to a very painful procedure. Never did they say "You've only paid so much. It's too much effort for us.".
Very pleased with their service. Prompt, professional and great communication. Definitely recommend. Special mention for Ms. Razia - she handled our case.
Professional Utilities is fully professional in their work, Rates are too low and genuine. Services and satisfaction are high so I highly recommended Professional Utilities.
They are one of the most genuine and reasonable people. I applied for lmpc certificate through them and they charged me a very nominal amount as compared to what other firms asked .
.svg)
.svg)
