Local Labour Licences

Employ Legally — All Labour Law Licences for Your Industry

✦ Industry-Specific Licence Audit ✦ Contract Labour & Factory Licences ✦ All States Covered
View Plans → Talk to Expert

What are Local Labour Licences?

Beyond the central-level PF and ESI registrations, Indian businesses must comply with a range of state and local labour law registrations and licences depending on their industry, size, and nature of employment. These include licences under the Contract Labour (Regulation and Abolition) Act, 1970 for businesses that engage contract workers; the Factories Act, 1948 for manufacturing establishments above prescribed power usage or worker thresholds; the Inter-State Migrant Workmen Act, 1979 for employers bringing workers from other states; and the Building and Other Construction Workers Act, 1996 for construction companies.

Non-compliance with labour licences is one of the most commonly overlooked compliance risks in India. Labour inspectors from state labour departments conduct inspections under multiple Acts simultaneously — establishments found without proper licences face compounding penalties, criminal prosecution of directors or managers, and forced cessation of operations. VITTAX provides a comprehensive labour licence audit and registration service — identifying every applicable licence for your industry and state, filing applications, managing renewals, and keeping your labour law compliance calendar current.

We also assist with compliance under the Maternity Benefit Act, the Payment of Gratuity Act, the Minimum Wages Act (state-wise wage revisions), and the Equal Remuneration Act — providing end-to-end labour law compliance management for businesses of all sizes.

⚠️ Establishments found without proper licences face compounding penalties, criminal prosecution of directors or managers, and forced cessation of operations.

Who Needs Labour Licences?

Factories & Plants

Manufacturing units with 10+ workers using power (Factories Act licence mandatory)

Contract Labour Users

Businesses engaging contract labour through contractors (Contract Labour Act)

Construction Industry

Construction companies, real estate developers, and infrastructure contractors

Migrant Labour Employers

Businesses employing inter-state migrant workers for seasonal or project work

Principal Employers

Principal employers deploying contractors at their premises (registration required)

Labour Welfare Fund States

Shops and establishments in states where specific welfare fund contributions are mandatory

Pricing Plans

Labour Licence Audit

₹3,999 one-time

Identify all applicable licences for your business

Ideal for: Any business wanting to understand its complete labour law obligation

  • Industry and state-wise licence requirement analysis
  • Gap identification vs. current compliance
  • Priority action plan
  • Written advisory report
VITTAX Fee: ₹3,999 one-time  |  Govt. Fees: Nil
Get Started →
POPULAR

Full Labour Compliance Package

₹14,999 per year

All applicable licences + annual compliance management

Ideal for: SMEs and factories wanting complete labour law compliance managed by VITTAX

  • All identified licence applications
  • Annual renewals for 12 months
  • Monthly compliance calendar
  • Wage revision alerts (state Minimum Wages)
  • Labour inspection support
VITTAX Fee: ₹14,999/year  |  Govt. Fees: Govt fees at actuals
Get Started →

Frequently Asked Questions

What is the difference between a Factory Licence and a Trade Licence?

A Trade Licence is issued by the municipal body and permits carrying on a trade from specific premises. A Factory Licence is issued by the State Factories Inspectorate under the Factories Act and specifically governs manufacturing premises with power-driven machinery. Both are required for factories within municipal limits.

Does every business that uses a contractor need Contract Labour Act registration?

No — the threshold is 20 or more contract workers on any day in the preceding 12 months. Below this threshold, the Act does not apply. However, some states have lower thresholds. VITTAX assesses your specific situation.

What is the Labour Welfare Fund (LWF) and which states require it?

LWF is a state contribution (by employer and employee) toward worker welfare — recreational facilities, housing, education, etc. It applies in states including Andhra Pradesh, Telangana, Maharashtra, Karnataka, Gujarat, Madhya Pradesh, and Tamil Nadu. Contribution rates and frequency (monthly/half-yearly) vary by state.

Quick Enquiry

Labour Licence Audit₹3,999 one-time
Full Compliance Package₹14,999/year

At a Glance

CoverageAll States
Audit ReportWritten Advisory
Inspection SupportIncluded
Govt. FeesAt Actuals

⚡ Licences Covered

FactoriesFactories Act, 1948
Contract LabourCLRA Act, 1970
ConstructionBOCW Act, 1996
Migrant WorkersISMW Act, 1979

Identify & Obtain All Your Labour Licences — VITTAX Does the Complete Compliance Audit

Industry-specific licence audit, contract labour & factory licences, all states covered — employ legally from day one

Get Started Today → Talk to Expert