If we are involved in salary transfers for people across India (liability only until salary transfer and PF & ESIC payments), what licenses do we need to acquire and can they be obtained centrally? Please help. Our organization is a partnership firm and we have obtained the rest of the required licenses. Can the labor license be obtained centrally or is it specific to each state?
From India, Hyderabad
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From India, Hyderabad
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Registration Requirements for Pvt Ltd Companies
If you are part of a Pvt Ltd company, you should register with the ROC. Since yours is a service-oriented business, registration with service tax is mandatory if your business exceeds ₹10,00,000 per annum. Registration with the Shops & Commercial Establishment Act is required. PT registration is mandatory for any organization.
Employee Benefits Compliance
ESI is applicable when your employee strength reaches 10 or more, while EPF is applicable if the strength is 20 or more. The rest is as applicable. Some licenses can be availed nationwide, while some are state-specific.
From India, Bangalore
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653If you are part of a Pvt Ltd company, you should register with the ROC. Since yours is a service-oriented business, registration with service tax is mandatory if your business exceeds ₹10,00,000 per annum. Registration with the Shops & Commercial Establishment Act is required. PT registration is mandatory for any organization.
Employee Benefits Compliance
ESI is applicable when your employee strength reaches 10 or more, while EPF is applicable if the strength is 20 or more. The rest is as applicable. Some licenses can be availed nationwide, while some are state-specific.
From India, Bangalore
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No its not central It is state specific only. Even PT is state specific
From India, Bangalore
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From India, Bangalore
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PF can be maintained centrally. ESI it is better to maintain state wise because the rules of esi will differ from district to district.
From India, Kochi
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From India, Kochi
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Your business falls under "Third Party" Business. Previously, companies would subcontract for a fixed price for unskilled and other staff. However, many agencies now operate on a service charge percentage basis for monthly outsourcing costs. Despite this, the job still falls under the Contract Labour (Regulation and Abolition) Act, 1970. Even if your liability is limited to salary, PF, and ESI, it is still considered a "Sub-Contract."
Labour licenses are applicable when you deploy 20 or more laborers in a single place under a single agreement. Even if under a single agreement you deploy 20 or more in the same jurisdiction, the Labour Office can require you to obtain a Labour Licence.
One important point is that if the company you are working for is a contractor company (being the prime contractor of the location) and they have a Labour Licence for all deployed labor/staff, you can ask them to issue you a certificate stating "the deployed manpower at the site is included in their Labour Licence." In that case, you will not need to obtain a Labour Licence for that site.
For other registrations, fellow members have already clarified.
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From India, Delhi
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Labour licenses are applicable when you deploy 20 or more laborers in a single place under a single agreement. Even if under a single agreement you deploy 20 or more in the same jurisdiction, the Labour Office can require you to obtain a Labour Licence.
One important point is that if the company you are working for is a contractor company (being the prime contractor of the location) and they have a Labour Licence for all deployed labor/staff, you can ask them to issue you a certificate stating "the deployed manpower at the site is included in their Labour Licence." In that case, you will not need to obtain a Labour Licence for that site.
For other registrations, fellow members have already clarified.
Regards
From India, Delhi
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Employees' State Insurance Central Rules 1950.pdf
Employees' State Insurance Central Rules 1950.doc