I am holding a franchise of a Delhi based company I am holding a franchise of a Delhi based company

6 months ago

I am holding a franchise of a Delhi based company engaged in recruitment.... The Principal company says that they are holding RA licence...Is it necessary for me to obtain RA (Recruitment Licence ) , even though I am a franchisee..

Legal Counsel Vidhikarya

Responded 6 months ago

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A.Dear client,
The Indian government has made it mandatory for all recruitment agencies operating in India to have a license. The license is issued by the Ministry of Labour and Employment, which is under the Government of India. The license is valid for two years and you can apply for it online. Starting a Recruitment Agency in India even through a franchisee of the principal company involves obtaining various permits, licenses, and legal undertakings depending upon the jurisdiction. Here are some common permits and licenses you might need: Company Registration: Register your business entity, such as a private limited company, LLP, or partnership, with the Registrar of Companies (ROC) in India. GST Registration: Employee Provident Fund (EPF) Registration. Employee State Insurance (ESI) Registration:. Labour License: Depending on the number of contract employees you employ, you might need to obtain a labor license under the Contract Labour (Regulation and Abolition) Act., a Trade License issued by the Municipal Corporation of the concerned area. So, go through the franchisee agreement and comply with your obligations to start a Recruitment Agency.
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Anik

Responded 6 months ago

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A.Dear Client,
If the principal company you are franchising from holds an RA license, it means they are legally authorized to operate as a recruitment agency. However, whether you, as a franchisee, also need to obtain an RA license may depend on the specific contractual agreement between you and the principal company, as well as the business model you operate under. Review your franchise agreement carefully. It should outline the responsibilities and obligations of both parties, including any requirements related to licensing and compliance with employment laws. If you have a significant degree of operational control over the recruitment activities, you may be considered a separate entity from the principal company. In such cases, you may need your own RA license.
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