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Labour license registration in India is important compliance for businesses that employ people or have workers. All employers must register with the relevant state labour department and obtain a valid labour license before starting their operations. The purpose of obtaining a labour license is to ensure the safety, health, welfare, working conditions, and remuneration of industrial workers.
Registration also helps maintain records related to wages, leave entitlements, and other benefits employers provide to their employees. Labour licensing laws vary from one state to another, but the general procedure remains largely similar across all states.
Employers must submit the requisite documents and fees at the nearest Licensing Officer (LO) appointed by the government under respective state Acts/Rules governing the Industrial Establishment/Contracts Workers Act 1948 or Factories Act 1948, depending on what type of industry they are operating in.
Once the LO grants permission after a thorough verification process, a valid labour license will be issued, which must be renewed periodically as prescribed by applicable law(s).
A Labour License is required by any organisation or business employing workers in India. This includes companies, factories, shops, and establishments engaged in activities such as manufacturing, trading, selling goods, or providing services.
To employ workers, employers must have a valid Labour License issued by the appropriate state government. The purpose of the Labour License is to ensure that employers comply with the laws related to labour rights and social security. Below is a list of individuals who are required to obtain a Labour License:
