Navigating Legalities for Small Startups: Can I Issue Offer Letters Without a Labor License?

Hi, I started a new software development startup in 2014, and things are a little slow. I hired in November 2014 and currently have 4 employees. I want to give them offer letters now, but the labor license is not done yet (I am applying now, which I can get in 20 days). Can I give the offer letters now? Is it legal? Also, can I give offer letters now when I hired them a few months back?

Currently, I am paying 10,000 per month, along with free accommodation and snacks. It will be increased to 15k after 6 months. So, I am planning to give an "intern" position for the first 6 months and "software developer" after 6 months and want to mention the same in the offer letters. Can I do that?

I heard that startups with less than 10 people should not write position names in offer letters. Is there any particular format for small startups?

I registered the company under my home address, and this office (3BHK residence apartment) is not yet registered because my office apartment owner doesn't have any utility bill yet, and I don't have much money to change offices immediately, so I didn't (I will do now if necessary, so please suggest). I have been running office operations since November 2014 but still didn't register it. Also, I am not paying any double current bills, etc. I am really confused if I am going illegally, which I don't want to. Please advise in this regard.

Regards

Offer letters should be provided at the time of selecting the candidate, as the candidate has already accepted the offer. Now, you need to issue the appointment letter.

Secondly, the labor license is obtained by the contractor, not by the principal employer. Since you have directly recruited them onto your company's payroll, you are considered the principal employer for them. Therefore, there is no need to obtain the labor license.

You can mention the terms and conditions of the appointment as you see fit.

As you have just started your business, you will definitely be looking for opportunities. To attract business, it is important to have various registrations such as Shop & Establishment, Provident Fund, ESIC, Profession Tax, VAT, PAN, Labor Welfare Fund, etc. To obtain these registrations, you must have a proper office, whether rented or owned, and the necessary documents for the place of business.

Therefore, to grow your business successfully, ensure you have all the required legal documents in place.

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