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Obtaining an Overseas Recruitment Agent License: A Comprehensive Guide to Manpower License in India

Overseas recruitment license process in india

Recruiting overseas workers has become a common practice for many companies in India. This has led to the growth of overseas recruitment agencies and the need to obtain a valid RA license to operate. An RA license is popularly known as an overseas recruitment license. The license ensures that the recruitment agencies follow the laws and regulations set by the Indian government, protect the rights of workers, and promote ethical recruitment practices. In India, a RA License, also known as an Overseas Recruitment Agent License, is a legal permit that allows an individual or a recruitment agency to conduct overseas recruitment activities.

What is an Overseas Recruitment Agent License?

An Overseas Recruitment Agent License (RA license) is a mandatory requirement for all agencies that are engaged in overseas recruitment activities in India. This license is issued by the Ministry of External Affairs (MEA) and is valid for a period of five years. The license ensures that the recruitment agencies follow the rules and regulations set by the Indian government, protect the rights of workers, and promote ethical recruitment practices.

Why Do You Need an Overseas Recruitment Agent License?

The primary reason for obtaining an RA license is to operate as a legitimate overseas recruitment agency in India. The license proves that the agency has met the necessary requirements set by the government and is authorized to recruit workers for overseas employment. Additionally, the license helps to protect the rights of workers, ensure their welfare, and promote ethical recruitment practices.

Requirements for Obtaining an Overseas Recruitment Agent License

The following are the key requirements for obtaining an RA license in India:

Applicants have two options for obtaining a RA licence, which are based on the number of candidates to be recruited and the corresponding bank guarantee that must be submitted.

For Recruiting Unlimited Candidates

(Popularly known as 1000+ license)

For Recruiting up to 100 Candidates

(Popularly known as 100+ license)

Rs. 50 Lakh Bank guarantee Rs. 8 Lakh Bank guarantee
42 Lakh Net Worth (Liquid and Immovable assets) 05 Lakh Net Worth (Liquid and Immovable assets)
Application fee: Rs. 25,000/- Application fee: Rs. 10,000/-
  1. Registered company: The agency must be a registered company in India.
  2. PAN and GST Registration: The company must have a PAN (Permanent Account Number) and GST (Goods and Services Tax) registration.
  3. Office space: The agency must have a minimum office space of 550 sq ft in India.
  4. Bank Guarantee: The agency must provide a bank guarantee based on the proposed number of candidates to be recruited during the license validity.
  5. Net-worth criteria: Depending on the type of bank guarantee chosen, an applicant must meet the net-worth criteria mentioned above.
  6. Qualification: An authorized signatory of the company must have a graduation degree certificate from a recognized university in India.
  7. Income tax return: All directors and partners of the company must have 3 years of ITR
  8. Background check: a criminal background check of the business owners and key personnel will be required.

Can I increase capacity from a recruitment limit of 100 employees against a bank guarantee of Rs 8 lakh to more later?

Yes, you can initially obtain a RA licence with a bank guarantee of Rs 8 lakh and later increase your capacity from 100 to 200, 300, 400, 500, or 1000+ by submitting an additional bank guarantee in multiples of Rs 8 lakh.

You can apply for recruitment capacity enhancement by submitting additional bank guarantees as per the below table:

Recruitment capacity Bank Guarantee (Rs.) Application fee(Rs.)
100 8 Lkh 10000/-
200 16 Lkh 10000/-
300 24 Lkh 10000/-
400 32 Lkh 10000/-
500 40 Lkh 10000/-
1000+ 50 Lkh 25000/-

Will there be any fee for capacity enhancement from 100 to more?

Yes, there is an application fee of Rs 10,000 for increasing capacity from 100 to 200, 300, 400, or 500, and Rs 25,000 for increasing capacity from 100 to 1000+.

The Process of Obtaining an Overseas Recruitment Agent License

The process of obtaining an RA license in India involves the following steps:
  1. Prepare the required documents: Collect all the required documents, including the registered company details, directors KYC, qualification certificates, office space proof, bank guarantee, and director's information.
  2. Submit the Application: Submit the completed application form along with the required documents to the Indian Ministry of External Affairs (MEA).
  3. Background check: a criminal background check of the business owners and key personnel will be required.
  4. Qualification verification: graduation degree verification will be conducted.
  5. Verification Process: The MEA will verify the submitted documents and conduct an inspection of the agency's office.
  6. Grant of License: If the agency meets all the requirements, the MEA will grant the RA license.

What are the documents required for obtaining an Overseas Recruitment Agent License?

The specific documents required for obtaining an overseas recruitment agent license vary depending on the bank guarantee opted for and the type of applicant company. However, the common documents required are:

  1. Proof of identity: passport, government-issued ID, or any other document that proves your identity.
  2. Proof of business ownership: business registration certificate, articles of incorporation certificate, MOA, AOA, or any other document that proves your ownership of the business.
  3. Business plan: outlining your business goals, target market, and recruitment process.
  4. Financial documents: bank statements, tax returns, or any other financial document that demonstrates your financial stability.
  5. Labor market analysis: a report on the labor market conditions in the country you intend to recruit from.

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