Article · Checklist

Labour law compliance for startups in India: checklist

King Stubb & Kasiva · ksandk.com Free Beginner India

A law firm's checklist, updated May 2026 for the Labour Codes, of what a startup must register for and comply with when it starts employing people: Shops and Establishments registration, appointment letters, PF at 20 or more employees, ESI at 10 or more, the 50% wage rule, and a POSH committee.

  • Register under your state's Shops and Establishments Act as soon as you have an office and staff.
  • PF applies from 20 employees and ESI from 10.
  • Allowances above 50% of pay count as wages for PF, gratuity and bonus.

The question it answers

  1. How do I hire my first employee?

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