(CLRA) Labour License Company Registration Online In India

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(CLRA) Labour License

incorporation of one person company, one person company documents required, incorporation of one person company

We help you pick the right company name.

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We help you pick the right company name.

Step 2

We draft and file the documents required for your company registration (MoA and AoA).

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Contract Labour Regulation and Abolition(CLRA)

The Contract Labour (Regulation and Abolition) Act, often abbreviated as CLRA, is a crucial piece of labor legislation in many countries, including India. It is designed to regulate the employment and working conditions of contract laborers engaged by establishments. Under CLRA, businesses that employ a certain number of contract laborers are required to obtain a labor license, which is issued by the appropriate government authority. This license serves to protect the rights and welfare of contract laborers by ensuring fair wages, safe working conditions, and other benefits. It also promotes transparency in the employment of contract labor, as businesses are required to maintain detailed records and comply with statutory obligations.

Worker Protection

CLRA ensures that contract laborers are not subject to exploitation and are entitled to fair wages, proper working conditions, and statutory benefits.

Safe Working Environment

The Act mandates safety measures and welfare amenities at workplaces, reducing the risk of accidents and health hazards for contract workers.

Equal Treatment

It requires that contract laborers be treated equally to regular employees in terms of wages and working conditions for similar work, reducing wage disparities.

Social Security

CLRA encourages employers to provide social security benefits like provident funds, gratuity, and health insurance, enhancing the financial security of contract laborers.


Employers are obligated to maintain detailed records of contract labor, promoting transparency in employment relationships and ensuring compliance with labor laws.

Dignity of Labor

It recognizes and upholds the dignity of labor by regulating employment relationships and preventing exploitation.


The Act allows businesses to flexibly hire labor for short-term or seasonal work, providing labor market flexibility while safeguarding workers’ rights.

Procedure for Incorporation of One Person Company

One Person Company Registration process includes various steps that need to be followed carefully. The steps are as below

Muster Roll

A record of attendance for all contract laborers employed, showing their names, addresses, and daily attendance.

Wage Register

A register detailing wages paid to each contract laborer, including deductions and overtime if applicable.

Identity Proof

Identification documents for all contract laborers, such as Aadhar cards, voter ID cards, or passports.

Address Proof

Proof of address for contract laborers, such as utility bills or rental agreements.

PF and ESI Records

If applicable, records of contributions made towards provident fund (PF) and employee state insurance (ESI) for contract laborers.

Payment Records

Records of payments made to contract laborers, including wages, overtime, and any statutory benefits.

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FAQ’s about One Person Company

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A: CLRA is a labor law in India that regulates the employment of contract laborers. It aims to protect their rights, ensure fair employment practices, and abolish the exploitation of contract labor.

A: CLRA applies to establishments or contractors that employ 20 or more contract laborers. It's essential for both principal employers and contractors engaged in contract labor.

A: The primary purpose of CLRA is to regulate the employment of contract labor and ensure they receive fair wages, working conditions, and statutory benefits. It also aims to promote transparency and accountability in labor contracts.

A: Businesses that employ 20 or more contract laborers are required to obtain registration under CLRA. Smaller establishments may be exempt.

A: The documents required for CLRA registration may include a copy of the application form, proof of identity and address, details of contract laborers, work orders, and other records as specified by local authorities.

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