What is a Labour Contractor Licence?

A Labour Contractor Licence is a government permission for a person or company that supplies workers to another business. The business that takes the workers is called the principal employer. The workers stay on the contractor's payroll, but they work at the premises of the principal employer.

Common examples are manpower supply companies, housekeeping and security agencies, canteen and loading contractors, civil work contractors and staffing firms.

Important update: The old Contract Labour (Regulation and Abolition) Act, 1970 has been replaced by the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), which came into force on 21 November 2025. Contract labour rules are now under this Code and its Rules. Applications are made online on the Shram Suvidha Portal.

CA Arpit Gupta helps contractors and principal employers understand the new rules, prepare the documents and complete the licence and related registrations.

Who Needs a Labour Contractor Licence Now?

Under the new law, a contractor needs a licence when the number of contract workers reaches the limit set by the Code.

Note: The limit is counted on the total number of contract workers the contractor employs across all the places where he works. Some states have their own rules and are still updating them, so please confirm the rule of your state.

What Are the Benefits of a Labour Contractor Licence?

• Legal permission to supply workers to companies, factories and sites
• Eligibility for big contracts, since many principal employers deal only with licensed contractors
• Single licence for work at different places, as per the Code
• Long validity of five years, which reduces yearly paperwork
• Better trust from clients, banks and workers
• Protection from penalties for working without a licence

What Documents Are Needed for Labour Contractor Licence Registration?

Note: The exact list can differ with the central and state rules. We share the full list after we know your case.

How Does Labour Contractor Licence Registration Work?

1. Call or WhatsApp us on +91-7081220600
2. Tell us your business type, the work you supply and the number of workers
3. We check if the licence is needed under the new limit, and which rules apply in your state
4. You send the documents by email or WhatsApp
5. We prepare the details of the contractor, the principal employer and the workers
6. We apply online on the Shram Suvidha Portal in the prescribed form
7. The security amount and the fee are paid, as per the rules
8. The officer reviews the application and may ask questions
9. We reply to any query
10. The licence is issued electronically, with the validity period
11. We guide you on wage records, PF, ESI and reporting

What Mistakes Should You Avoid?

• Following the old limit of 20 workers and not checking the new rule
• Starting work before getting the licence when the limit is crossed
• Not registering for PF and ESI
• Paying wages in cash with no proper record
• Not keeping a copy of the work order
• Placing workers in core activities where it is not allowed
• Ignoring the state rules, which may differ from the central rules
• Not renewing the licence before it ends

Why Choose CA Arpit Gupta for Labour Contractor Licence Registration?

• Updated with the new Code
• We tell you if you need a licence or not
• Complete set of registrations
• Careful documentation and registrations
• Support after the licence
• Help for principal employers too
• We explain every step clearly
• Easy contact

Get Your Labour Contractor Licence Today

Do not let a missing licence stop your contract or lead to a penalty. Share your work details with CA Arpit Gupta, and we will help you with the licence and the related registrations.

Call or WhatsApp CA Arpit Gupta at: +91-7081220600.