How Should We Register Our Bangalore-Based Energy Service Company Operating Across India?

The company I work for is a service provider (Energy) based in Bangalore. We have an office only in Bangalore, but our employees (Engineers - from ITI to BE) work at different parts across India at customers' sites (we don't have any offices there). Our all India strength is now 100+.

Kindly advise on how to register this establishment - under the Karnataka Shops and Establishment Act, Central Act, Contract Labour Act, or any other act suitable for us.

As your office is in Bangalore, you have to enroll with the Karnataka Shops & Commercial Establishment Act in Bangalore.

Is any of the employees working on a customer site a contract employee?

Hi Jeevarathnam, sorry to answer your question now. Yes, there are employees working at customer sites. Currently, they are all on our payroll. The number of employees varies, with some sites having more than 20 employees and others having fewer than 20. Please clarify the following doubts:

1. If the employee strength at a customer site is more than 20, should we apply for a license and follow the Contract Labour Act, or is it okay to continue as per the Karnataka Shops & Establishment Act?

2. If the employee strength is below 20, can we still apply for a contract license assuming 20 employees? Local labor inspectors insist on this whenever they visit our client sites.

3. Once we obtain the license, will it affect ESI (Sub-registration), PT (state-wise), and minimum wage (state-wise), etc.?

Contract Manpower Licensing and Registration Requirements

1) As you are providing contract manpower, you need to obtain a contract labor license along with the Shops & Commercial Establishment registration. Most principal employers will also insist on the same.

2) If there are fewer than 20 contract employees across Karnataka, then you may not be required to have it. However, many times clients may still insist on it, so you can obtain the same.

3) If you have offices in other states, then you may need to obtain sub-registration. If there are no offices, then it is not required. However, you still need to cover them with EPF & ESI.

If you need more details, you had better call me.

Regards