Labour License's are statutory license which is mandatory and applicable for establishments to ensure the welfare of the employees in those Organizations. The aims and objectives of the Labour registrations are maintenance of peaceful atmosphere for the labour in any business enterprises, decent working conditions and improved quality of life to the workers, ensure co-operation and healthy relation between the management and the employees, enhancing social security for workers etc. Among the various act come under the Labour Departments of the concerned state governments, every commercial establishments must register under Shop and Commercial Establishment Act 1960 . It is a basic requirement for all business enterprises who appoint employees or labour in that establishment. These license are applicable for all kind of organizations like Sole Proprietorships, Partnership Firms, Private Limited Companies, LLP, Trust and Societies etc.
The various Acts, Rules, license and registrations come under the labour department of state and central governments are listed below :
• Building and Other Construction Works Act
• The Beedi and Cigar Workers(Conditions of Employment) Act, 1966
• The Contract Labour(Regulation and Abolition) Act, 1970
• The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
• The Kerala Headload Workers Act, 1978
• The Motor Transport Workers Act, 1961
• The Plantations Labour Act, 1951
• Child Labour (Prohibition And Regulation)Act, 1986
• Equal Remuneration Act, 1976
• Industrial Disputes Act, 1947
• Maternity Benefit Act, 1961
• Minimum Wages Act, 1948
• Payment Of Bonus Act, 1965
• Payment Of Gratuity Act, 1972
• Payment Of Wages Act, 1936
• Trade Unions Act, 1926
• Workmen's Compensation Act, 1923
1. Id proof of the Applicant
2. Address proof of the Applicant
3. PAN of Business
4. Trade License Registration of Applicant
5. Rent Agreement / Office Address Proof
6. Partnership Deed
7. Certificate of Incorporation
8. MOA / AOA
9. D & O License / Trade License
EPF refers to Employees Provident fund. EPF registration is mandatory for all establishments-
• Establishments is a factory engaged in any industry or service sector having 20 or more persons, and
• Any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.
The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic salary. If the establishment has employed less than 20 employees, PF deduction rate will be 10%. An employee’s contribution towards their EPF account is eligible for tax exemption under Section 80C of the Indian Income Tax Act. Moreover, earnings generated through EPF scheme are exempted from taxes. Such exemption can be availed up to a limit of Rs. 1.5 Lakh as per 80 C of Income Tax.
• Registration Certificate or License issued under Shops and Establishment Acts or Factories Act.
• Address Proof: Latest Rent receipt of the premises or Rent Agreement.
• Latest building Tax/Property Tax receipt.
• Memorandum and Articles of Association/Partnership Deed/Trust Deed.
• Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
• Copy of PAN Card
• Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
• Month wise employment position, salary etc.
• Copy of bank statement
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days from opening of the company under ESI Act, 1948. Employee State Insurance Corporation or ESIC is a social security and health insurance scheme which provides medical benefit, disablement benefit, sickness benefit, maternity benefit and get various benefits like funeral expenses, free supply of physical aids etc. to the employees and their family. The ESI registration is compulsory for units or establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 per month under the ESI Act 1948.
• Registration Certificate or License issued under Shops and Establishment Acts or Factories Act.
• Address Proof: Latest Rent receipt of the premises or Rent Agreement.
• Latest building Tax/Property Tax receipt.
• Memorandum and Articles of Association/Partnership Deed/Trust Deed.
• Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
• Copy of PAN Card
• Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
• Month wise employment position, salary etc.
• Copy of bank statement