How & Why to Get a Manpower Supply License in India

The manpower supply license in India is issued by the Indian government for recruitment agencies. It is mandatory for an agency to get this license before it can recruit candidates for jobs in India.

 

3 Step Process to Apply for Manpower Supply License in India

 

The process of getting a Manpower Supply License in India is not very complicated. 

 

Step 1 - Fill out the Application Form

 

The manpower supply license is issued by the state government. Thus, it is different for all states.

 

Moreover, the rules and regulations also differ from state to state for this license.

 

For this purpose, go to the website of the state government where you want to get your license and download the form. 

 

You can also see the list of state-wise official websites to apply for a manpower supply license in India.

 

Fill out the details as asked and make sure that the information matches your documents.

 

Step 2 - Attach the Documents

 

The documents you submit must have all the updated information as that will further be in the registration certificate.

 

Here is a list of required documents:

 

• Identity Proof
• Address Proof
• Shop and Establishments Act Registration Certificate 
• Company Registration Online Certificate
• PAN Card of the Directors
• 4 Passport Size Photographs of the Directors
• Details of Business Activity in the last 5 years
• Bank Guarantee of Rs. 50 lacs
• Copy of Degree
• Balance Sheet of Company
• Income Tax Returns of Directors
• Digital Signature Certificate
• Police Verification Report of Owner and Applicants

 

All these documents will be verified by the authorized person. 

 

They will reach out to you in case they need any clarifications or additional documents.

 

Step 3 - Pay the Fees and Submit the Application

 

As the license is state-based, the fees will also differ. However, the fees for a manpower supply license in India start from Rs. 7,000 - Rs. 15,000.

 

Accordingly, pay the fees and submit the application along with the documents. 

 

After that, wait for the response from the government.

 

The time taken for the complete process is around 15 - 45 days.

 

The validity of the Manpower Supply License in India is mentioned in the registration certificate.

 

In fact, if you operate after the expiry of your license, you can be penalized and even prisoned.

 

Eligibility Criteria for Manpower Supply License in India

 

The eligibility criteria to apply for a Manpower Supply License in India are as follows:

 

• The applicant must be a company registered under the Indian Companies Act, 2013.
• The applicant must have an office in India.
• The company must have a bank guarantee of Rs 25 lacs.
• You must have an office with a minimum area of 150 sq ft in India or abroad.
• The applicant must have been doing business for at least five years.
• The applicant should not have been convicted of any offense involving moral turpitude or fraud punishable with imprisonment of more than three years.
• The applicant should not be insolvent or on the verge of insolvency.
• The applicant should not have defaulted on any loan taken from a financial institution or government agency for five years preceding the date of application.
• They should not be in default on any repayment obligation to such financial institutions or government agencies at the time of application.

 

Importance of Manpower Supply License in India

 

A Manpower Supply License is required for any business that supplies manpower to other establishments. 

 

Companies who are in the business of supplying manpower to other companies are required to get a license from the state Labor Department before they can start their operations.

 

A Manpower Supply License is a document issued by the state Labor Department, which certifies that a company is authorized to supply manpower to other establishments. 

 

It has certain conditions that need to be fulfilled for it, and these vary from state to state. 

 

One of the most important conditions for getting this license is that the company should have an office in the state where it plans on supplying manpower.

 

Who Needs a Manpower Supply License in India?

 

• A manpower supply license is required for any person who wishes to engage in the business of supplying manpower for temporary and permanent employment. 
• Any company that wants to employ more than 10 people requires a manpower supply license. 
• Companies with a manpower supply license can hire up to 1,500 employees.
• Companies without a manpower license are restricted to hiring up to 100 employees only.

 

After getting the manpower supply license, you must do the following to avoid any legal conflicts:

 

• Maintain records of all activities related to recruitment and supply of labor.
• Maintain records on all transactions related to recruitment and supply of labor including copies of agreements with clients, workers, recruiters, and any other person or entity involved in these transactions.

 

Why should you have a Manpower Supply License?

 

A manpower supply license allows you to recruit for other companies in order to complete a task, such as,

 

• When there are not enough employees to deal with customer service
• When there are not enough employees to fill positions in the company
• When there are not enough employees to work on projects
• When there are not enough employees to cover shifts