Do Domestic Recruitment Agencies Need a License? Seeking Guidance on Requirements

License Requirements for Domestic Recruitment Agencies

Is any license required for a domestic recruitment agency? A government official is asking the same question. If yes, then from where can we obtain it?

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First paragraph corrected for spelling and grammar errors, and reformatted for proper paragraph structure.

If you start any firm, you have to enroll with Shops & Commercial Establishment. In the registration, you need to update the nature of the business as required. This is considered a license.

As per my knowledge, there is no license required for a recruitment firm.

In case you restrict yourself to recruiting in India, then you do not need any other license other than the registration under the Shops & Establishments Act and other related licenses to run an establishment in India. However, if you plan to recruit labor for other countries, especially those who require ECR (Emigration Check Required), then you need to get a license from the Government of India. I am not sure which ministry, but the ministry that is part of the Central Government will issue you a license number that you need to quote in every advertisement or public communication.

For obtaining this license, you need to deposit a hefty fee. Any violation of the guidelines by the foreign employer of the labor sent by you will attract punitive measures against you. This clause has been brought in after the Indian labor class workers were exploited in the Middle East.

Thank you for your reply. Even the officials in the labor court did not have an idea about this issue. Hopefully, the shop and establishment license is the only license required for a domestic recruitment firm.

Thank you.