What licences does a contractor need in India?
To work on government projects, a contractor usually needs registration with the state PWD (or CPWD enlistment for central work), GST and PAN registration, and EPF and ESIC registration for their workforce. Under the Labour Codes, a contractor deploying 50 or more contract workers also needs a single labour licence, which replaced the old Contract Labour Act licence.
| Registration | Who needs it | Where |
|---|---|---|
| State PWD registration | Contractors bidding for state government works, by class and value limit | Your state PWD portal |
| CPWD enlistment | Contractors bidding for central government works | CPWD's online enlistment system (CEMS) |
| Labour licence (OSH Code) | Contractors deploying 50+ contract workers | Online, under your state's rules |
| GST and PAN | Practically every contractor billing works | GST portal, Income Tax Department |
| EPF and ESIC | Employers above the applicable thresholds | EPFO and ESIC portals |
State PWD contractor registration
Each state registers contractors in classes, such as Class I to Class V or A to E, with a maximum tender value for each class. Higher classes need more experience, turnover, engineers on staff and equipment. Requirements and fees vary by state, so use your state PWD's current rules and forms. You can usually move up a class by showing completed work and turnover.
CPWD enlistment
For central government works, contractors enlist with CPWD in categories and classes through its online enlistment system. Enlistment is checked against completed work, financial capacity, technical staff and equipment, and must be renewed.
The labour licence under the OSH Code
The Contract Labour (Regulation and Abolition) Act no longer applies. It was replaced by the Occupational Safety, Health and Working Conditions Code from 21 November 2025. As reported by compliance firms, contractors deploying 50 or more contract workers now need a single licence, valid for five years and applied for online, rather than a licence per establishment (Lexplosion; factoHR).
Guides that still say "licence needed for 20+ workers" are describing the old Act. State rules decide the details for most sites, so confirm with your state labour department. More in Labour Codes for contractors.
Why missing registrations hold up your RA bill
Government contracts increasingly tie payment to compliance. For example, Puducherry PWD's General Conditions of Contract (2023) link RA bill payment to the labour licence and EPFO, ESIC and BOCW registration (Puducherry PWD GCC).
If a ₹12,00,000 RA bill is held for 60 days while you get registered, the financing cost at 12% a year is about ₹23,671 (₹12,00,000 × 12% × 60 ÷ 365), more than the effort of registering first.
Documents checklist
- PAN, GST registration, and Udyam registration if you're an MSME
- Firm documents: partnership deed, incorporation certificate or proprietorship proof
- Bank solvency certificate and audited turnover statements
- Work-done and completion certificates from clients
- List of engineers and staff, with qualifications
- List of owned or leased equipment
- EPF and ESIC registration, and labour licence where applicable
- Address proof, photographs and authorised signatory details
Each state and department publishes its own list. Use it as the final word.
ठेकेदार लाइसेंस कैसे बनाए? (हिंदी में)
सरकारी काम के लिए आमतौर पर राज्य PWD में ठेकेदार पंजीकरण (केंद्र सरकार के काम के लिए CPWD एनलिस्टमेंट), GST और PAN, और मजदूरों के लिए EPF व ESIC पंजीकरण चाहिए। 21 नवंबर 2025 से नए लेबर कोड लागू हैं: अगर आप 50 या उससे ज़्यादा ठेका मजदूर लगाते हैं, तो एक ही लेबर लाइसेंस चाहिए, जो पाँच साल के लिए मान्य है। पुराने कॉन्ट्रैक्ट लेबर एक्ट वाला "20 मजदूर" का नियम अब लागू नहीं है। अपने राज्य के नियम ज़रूर देखें। कई विभाग पंजीकरण पूरा न होने पर RA बिल का भुगतान रोक देते हैं, इसलिए काम शुरू करने से पहले पंजीकरण पूरा करें।
After you're registered: run the work properly
Registration gets you the contract. Getting paid on time takes clean records: measurements, RA bills, attendance and wage payments. True Site Sync keeps all of them in one place, even on sites with no network. See RA bill software and labour attendance.
Frequently asked questions
Do I need a labour licence with fewer than 50 workers?
Under the OSH Code, the single contractor licence is reported to apply to contractors deploying 50 or more contract workers. Below that, check your state's rules and your contract's requirements.
Is the old Contract Labour Act licence still valid?
The Contract Labour Act was replaced by the OSH Code from 21 November 2025. Check your state's transition rules for existing licences.
How long is the new contractor licence valid?
Compliance firms report five years for the single licence under the OSH Code. Confirm with your state labour department.
How do I register as a PWD contractor?
Apply to your state PWD in the class that matches the tender values you want, with experience, turnover, staff and equipment documents. Requirements and fees differ by state.
What is CPWD enlistment?
It is CPWD's registration of contractors in categories and classes for central government works, applied for through its online enlistment system.
Can my RA bill be held for missing registrations?
Yes. Some contracts, such as Puducherry PWD's 2023 conditions, link RA bill payment to the labour licence and EPFO, ESIC and BOCW registration.
Contractor license kaise banaye?
Rajya PWD me class ke hisaab se registration karein, GST-PAN aur EPF-ESIC lein, aur 50 se zyada contract mazdoor hon to naye labour code ke tahat ek labour licence lein, jo 5 saal ke liye maanya hai.
Registered? Now get paid on time
Measurements, RA bills, attendance and wages in one record, so no bill is held for missing paperwork.
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