CLRA Registration & Licensing: Streamline Your Compliance Process

CLRA Registration & Licensing

Legalise your contract employers, Avail your CLRA license easily

Expert assisted CLRA compliance, documentation & application

What is CLRA Registration & Licensing

The Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act) was enacted to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances.

The Act applies to establishments that employ 20 or more contract labourers on any day of the financial year. Principal employers of such establishments and contractors who employ 20 or more contract labourers are required to register under the Act.

Documents Required for CLRA Registration & Licensing

Trade license
AOA and MOA or Partnership Deed
Factory License
Other certificates of registration, in case of an entity other than the company, proprietorship or partnership firm
Proof of address
Proof of identity
Proof of employment of contract labourers

When Should One Apply for CLRA Registration and Licensing?

One should apply for CLRA registration and licensing as soon as the principal employer starts employing contract labour. This is because the CLRA Act is a legal requirement for any establishment that employs contract labour. Failure to obtain registration and license can result in penalties, such as imprisonment, fine, or both.

Benefits of CLRA Registration & Licensing

Compliance with the law

Protection of contract workers' rights

Access to government benefits and schemes

Competitive Advantage

Reduced risk of penalties

Improved brand image

Eligibility of CLRA Registration & Licensing

Under GST, the following are listed as special category states.

The establishment must employ 20 & more contract labourers on any day of the financial year.

The establishment must be located in India.

The establishment must be engaged in any industry, manufacture, occupation, trade, or business

The establishment must not be a government establishment.

CLRA Registration & LicensingFrequently Asked Questions

The Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act) is an Act of the Parliament of India enacted to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

The CLRA Act applies to any establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.

Contract labour is a person who is employed by or through a contractor to do any work in an establishment other than the work of that contractor in that establishment.

The principal employer is the person who owns or manages the establishment, and the contractor is the person who employs the contract labour.

Every principal employer who employs contract labour is required to obtain a registration certificate from the Chief Labour Commissioner (Central) or any other officer authorised by him on this behalf. The contractor is also required to obtain a license from the Chief Labour Commissioner (Central) or any other officer authorised by him on this behalf.

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Starting a Business

Many founders are confused about what kind of entity to register when they start their business. Should it be a private limited company,limited liability partnership , partnership firm, one person company or a sole proprietorship. Each of these has very specific advantages and disadvantages. There is no one type for all businesses. A private limited company registration, for example, would be a good fit for any venture that will look for funding at a later stage. You can contact Credfy.in for all the advice you need. We assure you of great service at a reasonable price. You can find a company name availability here.

Intellectual Property

In modern business, there is no other asset as valuable as intellectual property, and yet so many startups end up neglecting it. But this is surely not advisable, as trademarks, copyrights and patents ensure that you have sole rights to your creation, be it your brand, your designs or your inventions. At Credfy.in, we are well equipped to handle all your IP requirements. We facilitate trademark applications in just three days,copyright registration for all your software, pictures, audio and video content, and can connect you to patent attorneys to conduct a patent search and file your patent applications. You can find a Trademark availability here.

Government Registrations

In India, you need a license for everything in business. Started a manufacturing business? You need aGST Registration and a Trade License. For a food business, you need an FSSAI license. Have employees? You need a Professional Tax registration and Shops & Establishments Act Registration. If that`s not enough, you also need to file GST Returns and Professional Tax Returns.

Legal Documentation

The worst way to approach business is to just get into new partnerships and arenas without examining consequences. By getting a lawyer to draft contracts or agreements with new vendors, employees and investors, you`re ensuring that you have all the downsides covered. At Credfy.in, we connect you to lawyers who will deliver complex documents, fromshareholders agreements and founders` agreements to terms of service/privacy policy and non-disclosure agreements, at a reasonable cost in a few days` time. Well-known startups, such as Holachef and Big Basket, have chosen to connect with a lawyer through us for their documentation work.

Mandatory Compliance

It`s not enough to have started a private limited company or an LLP. You need to comply with all the requirements of the Ministry of Corporate Affairs and Income Tax Act once you do. You need to inform them of every relevant change you make, whether it is adding a director, removing a partner or increasing authorised share capital. You also need to file annual returns and maintain your accounts. In the case of a private limited company, you even need them audited. At Credfy.in, we facilitate all these services completely online. Which means you can engage a professional on retainer for the year and we`ll ensure that all the formalities are completed for you while you focus on your business.

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