Labour Certificate

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Labour Certificate

A Labour Certificate (sometimes called Labour License or Labour Department Registration Certificate) is an official document issued by the Labour Department of the State Government. It certifies that a business/establishment complies with applicable labour laws, minimum wages, safety, and welfare regulations.

1. Shop & Establishment Certificate

  • For commercial establishments like shops, offices, and service firms.
  • Issued under the Shops & Establishments Act of the respective state.

2. Factory License / Labour Certificate

  • For manufacturing units/factories employing workers.
  • Proof of compliance with the Factories Act, 1948.

3. Labour Contractor License

  • Required by contractors supplying labour to other businesses.
  • Issued under the Contract Labour (Regulation & Abolition) Act, 1970.

4. Building & Construction Labour Certificate

  • Needed in construction projects for employing construction workers.
  • Regulated by the Building and Other Construction Workers (BOCW) Act.

  • Business registration documents (Partnership Deed / MoA-AoA / Proprietorship proof)
  • PAN card of business & owner
  • Aadhaar card of owner/partners/directors
  • Address proof of business (rent agreement/property tax bill/electricity bill)
  • Number of employees and their details
  • Copy of trade license / GST certificate
  • Passport-size photographs of owner/partners

For Shops & Establishments

    Any commercial establishment (shops, offices, hotels, restaurants, IT firms, etc.) Even small businesses with 1-2 employees are eligible (and usually required by law).

For Factories

    Any manufacturing unit/factory registered under the Factories Act, 1948. Eligibility depends on: 10 or more workers with power (electricity/machinery), OR 20 or more workers without power. Must have approval from the Chief Inspector of Factories in the state.

For Labour Contractors

  • Contractors supplying 20 or more workers to other establishments are required to obtain a Contract Labour License
  • Registration needed under the Contract Labour (Regulation & Abolition) Act, 1970.

For Building & Construction Businesses

  • Any company/contractor employing 10 or more workers in construction activity.
  • Covered under the BOCW Act (Building and Other Construction Workers Act, 1996).

General Eligibility Conditions

  • Applicant must be 18 years or above.
  • Must be owner, partner, or director of the business.
  • The business should have valid registration documents (GST, PAN, Incorporation, etc.).
  • Must provide employee details (number of workers, wages, etc.).
  • Must comply with minimum wage, ESI, PF, and safety laws (if applicable).

  • Legal Compliance - Ensures your business is compliant with state & central labour laws.
  • Loan & DPR Requirement - Many banks ask for a labour certificate as part of DPR/CMA supporting documents for sanctioning loans.
  • Employee Welfare - Enables employees to access labour benefits (insurance, ESI, PF, etc.).
  • Government Schemes - Mandatory for MSME subsidies, tenders, and project approvals.
  • Business Credibility - Improves trustworthiness with banks, clients, and employees.
 
     
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