diff --git a/app/controllers/api/v1/accounts/labels_controller.rb b/app/controllers/api/v1/accounts/labels_controller.rb
index c9f15bdae..5db0fb87b 100644
--- a/app/controllers/api/v1/accounts/labels_controller.rb
+++ b/app/controllers/api/v1/accounts/labels_controller.rb
@@ -1,10 +1,38 @@
 class Api::V1::Accounts::LabelsController < Api::BaseController
-  # list all labels in account
+  before_action :current_account
+  before_action :fetch_label, except: [:index, :create]
+  before_action :check_authorization
+
   def index
-    @labels = current_account.all_conversation_tags
+    @labels = policy_scope(current_account.labels)
   end
 
-  def most_used
-    @labels = ActsAsTaggableOn::Tag.most_used(params[:count] || 10)
+  def show; end
+
+  def create
+    @label = current_account.labels.create!(permitted_params)
+  end
+
+  def update
+    @label.update(permitted_params)
+  end
+
+  def destroy
+    @label.destroy
+    head :ok
+  end
+
+  private
+
+  def fetch_label
+    @label = current_account.labels.find(params[:id])
+  end
+
+  def check_authorization
+    authorize(Label)
+  end
+
+  def permitted_params
+    params.require(:label).permit(:title, :description, :color, :show_on_sidebar)
   end
 end
diff --git a/app/models/account.rb b/app/models/account.rb
index 42dcf75ae..dbae201d3 100644
--- a/app/models/account.rb
+++ b/app/models/account.rb
@@ -45,6 +45,7 @@ class Account < ApplicationRecord
   has_many :web_widgets, dependent: :destroy, class_name: '::Channel::WebWidget'
   has_many :canned_responses, dependent: :destroy
   has_many :webhooks, dependent: :destroy
+  has_many :labels, dependent: :destroy
   has_one :subscription, dependent: :destroy
   has_many :notification_settings, dependent: :destroy
   has_flags ACCOUNT_SETTINGS_FLAGS.merge(column: 'settings_flags').merge(DEFAULT_QUERY_SETTING)
diff --git a/app/models/label.rb b/app/models/label.rb
new file mode 100644
index 000000000..087e07637
--- /dev/null
+++ b/app/models/label.rb
@@ -0,0 +1,20 @@
+# == Schema Information
+#
+# Table name: labels
+#
+#  id              :bigint           not null, primary key
+#  color           :string
+#  description     :text
+#  show_on_sidebar :boolean
+#  title           :string
+#  created_at      :datetime         not null
+#  updated_at      :datetime         not null
+#  account_id      :bigint
+#
+# Indexes
+#
+#  index_labels_on_account_id  (account_id)
+#
+class Label < ApplicationRecord
+  belongs_to :account
+end
diff --git a/app/policies/label_policy.rb b/app/policies/label_policy.rb
new file mode 100644
index 000000000..986044ce6
--- /dev/null
+++ b/app/policies/label_policy.rb
@@ -0,0 +1,17 @@
+class LabelPolicy < ApplicationPolicy
+  def index?
+    @account_user.administrator?
+  end
+
+  def update?
+    @account_user.administrator?
+  end
+
+  def show?
+    @account_user.administrator?
+  end
+
+  def create?
+    @account_user.administrator?
+  end
+end
diff --git a/app/views/api/v1/accounts/labels/create.json.jbuilder b/app/views/api/v1/accounts/labels/create.json.jbuilder
new file mode 100644
index 000000000..edeff661f
--- /dev/null
+++ b/app/views/api/v1/accounts/labels/create.json.jbuilder
@@ -0,0 +1,5 @@
+json.id @label.id
+json.title @label.title
+json.description @label.description
+json.color @label.color
+json.show_on_sidebar @label.show_on_sidebar
diff --git a/app/views/api/v1/accounts/labels/index.json.jbuilder b/app/views/api/v1/accounts/labels/index.json.jbuilder
index 13f99090d..ddff73eec 100644
--- a/app/views/api/v1/accounts/labels/index.json.jbuilder
+++ b/app/views/api/v1/accounts/labels/index.json.jbuilder
@@ -1,8 +1,9 @@
-json.data do
-  json.meta do
-  end
-
-  json.payload do
-    json.labels @labels
+json.payload do
+  json.array! @labels do |label|
+    json.id label.id
+    json.title label.title
+    json.description label.description
+    json.color label.color
+    json.show_on_sidebar label.show_on_sidebar
   end
 end
diff --git a/app/views/api/v1/accounts/labels/most_used.json.jbuilder b/app/views/api/v1/accounts/labels/most_used.json.jbuilder
deleted file mode 100644
index c411b47ed..000000000
--- a/app/views/api/v1/accounts/labels/most_used.json.jbuilder
+++ /dev/null
@@ -1,3 +0,0 @@
-json.payload do
-  json.labels @labels
-end
diff --git a/app/views/api/v1/accounts/labels/show.json.jbuilder b/app/views/api/v1/accounts/labels/show.json.jbuilder
new file mode 100644
index 000000000..edeff661f
--- /dev/null
+++ b/app/views/api/v1/accounts/labels/show.json.jbuilder
@@ -0,0 +1,5 @@
+json.id @label.id
+json.title @label.title
+json.description @label.description
+json.color @label.color
+json.show_on_sidebar @label.show_on_sidebar
diff --git a/app/views/api/v1/accounts/labels/update.json.jbuilder b/app/views/api/v1/accounts/labels/update.json.jbuilder
new file mode 100644
index 000000000..edeff661f
--- /dev/null
+++ b/app/views/api/v1/accounts/labels/update.json.jbuilder
@@ -0,0 +1,5 @@
+json.id @label.id
+json.title @label.title
+json.description @label.description
+json.color @label.color
+json.show_on_sidebar @label.show_on_sidebar
diff --git a/config/routes.rb b/config/routes.rb
index 60b5c9736..dc1172660 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -76,12 +76,8 @@ Rails.application.routes.draw do
           post :set_agent_bot, on: :member
         end
         resources :inbox_members, only: [:create, :show], param: :inbox_id
-        resources :labels, only: [:index] do
-          collection do
-            get :most_used
-          end
-        end
 
+        resources :labels, only: [:index, :show, :create, :update, :destroy]
         resources :notifications, only: [:index, :update]
         resource :notification_settings, only: [:show, :update]
 
diff --git a/db/migrate/20200606132552_create_labels.rb b/db/migrate/20200606132552_create_labels.rb
new file mode 100644
index 000000000..81ac698e9
--- /dev/null
+++ b/db/migrate/20200606132552_create_labels.rb
@@ -0,0 +1,13 @@
+class CreateLabels < ActiveRecord::Migration[6.0]
+  def change
+    create_table :labels do |t|
+      t.string :title
+      t.text :description
+      t.string :color
+      t.boolean :show_on_sidebar
+      t.references :account, index: true
+
+      t.timestamps
+    end
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 1509a912a..1ef9c48e1 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 2020_05_22_115645) do
+ActiveRecord::Schema.define(version: 2020_06_06_132552) do
 
   # These are extensions that must be enabled in order to support this database
   enable_extension "pg_stat_statements"
@@ -256,6 +256,17 @@ ActiveRecord::Schema.define(version: 2020_05_22_115645) do
     t.index ["name", "created_at"], name: "index_installation_configs_on_name_and_created_at", unique: true
   end
 
+  create_table "labels", force: :cascade do |t|
+    t.string "title"
+    t.text "description"
+    t.string "color"
+    t.boolean "show_on_sidebar"
+    t.bigint "account_id"
+    t.datetime "created_at", precision: 6, null: false
+    t.datetime "updated_at", precision: 6, null: false
+    t.index ["account_id"], name: "index_labels_on_account_id"
+  end
+
   create_table "messages", id: :serial, force: :cascade do |t|
     t.text "content"
     t.integer "account_id", null: false
diff --git a/spec/controllers/api/v1/accounts/labels_controller_spec.rb b/spec/controllers/api/v1/accounts/labels_controller_spec.rb
index a3d6fb347..3958390ab 100644
--- a/spec/controllers/api/v1/accounts/labels_controller_spec.rb
+++ b/spec/controllers/api/v1/accounts/labels_controller_spec.rb
@@ -1,12 +1,8 @@
 require 'rails_helper'
 
 RSpec.describe 'Label API', type: :request do
-  let(:account) { create(:account) }
-  let(:conversation) { create(:conversation, account: account) }
-
-  before do
-    conversation.update_labels('label1, label2')
-  end
+  let!(:account) { create(:account) }
+  let!(:label) { create(:label, account: account) }
 
   describe 'GET /api/v1/accounts/{account.id}/labels' do
     context 'when it is an unauthenticated user' do
@@ -18,7 +14,7 @@ RSpec.describe 'Label API', type: :request do
     end
 
     context 'when it is an authenticated user' do
-      let(:agent) { create(:user, account: account, role: :agent) }
+      let(:agent) { create(:user, account: account, role: :administrator) }
 
       it 'returns all the labels in account' do
         get "/api/v1/accounts/#{account.id}/labels",
@@ -26,33 +22,82 @@ RSpec.describe 'Label API', type: :request do
             as: :json
 
         expect(response).to have_http_status(:success)
-        expect(response.body).to include('label1')
-        expect(response.body).to include('label2')
+        expect(response.body).to include(label.title)
       end
     end
   end
 
-  describe 'GET /api/v1/accounts/{account.id}/labels/most_used' do
+  describe 'GET /api/v1/accounts/{account.id}/labels/:id' do
     context 'when it is an unauthenticated user' do
       it 'returns unauthorized' do
-        get "/api/v1/accounts/#{account.id}/labels"
+        get "/api/v1/accounts/#{account.id}/labels/#{label.id}"
 
         expect(response).to have_http_status(:unauthorized)
       end
     end
 
     context 'when it is an authenticated user' do
-      let(:agent) { create(:user, account: account, role: :agent) }
+      let(:admin) { create(:user, account: account, role: :administrator) }
 
-      it 'returns most used labels' do
-        get "/api/v1/accounts/#{account.id}/labels/most_used",
-            headers: agent.create_new_auth_token,
-            params: { count: 1 },
+      it 'shows the contact' do
+        get "/api/v1/accounts/#{account.id}/labels/#{label.id}",
+            headers: admin.create_new_auth_token,
             as: :json
 
         expect(response).to have_http_status(:success)
-        expect(response.body).to include('label1')
-        expect(response.body).not_to include('label2')
+        expect(response.body).to include(label.title)
+      end
+    end
+  end
+
+  describe 'POST /api/v1/accounts/{account.id}/labels' do
+    let(:valid_params) { { label: { title: 'test' } } }
+
+    context 'when it is an unauthenticated user' do
+      it 'returns unauthorized' do
+        expect { post "/api/v1/accounts/#{account.id}/labels", params: valid_params }.to change(Label, :count).by(0)
+
+        expect(response).to have_http_status(:unauthorized)
+      end
+    end
+
+    context 'when it is an authenticated user' do
+      let(:admin) { create(:user, account: account, role: :administrator) }
+
+      it 'creates the contact' do
+        expect do
+          post "/api/v1/accounts/#{account.id}/labels", headers: admin.create_new_auth_token,
+                                                        params: valid_params
+        end.to change(Label, :count).by(1)
+
+        expect(response).to have_http_status(:success)
+      end
+    end
+  end
+
+  describe 'PATCH /api/v1/accounts/{account.id}/labels/:id' do
+    let(:valid_params) { { title: 'Test 2' }  }
+
+    context 'when it is an unauthenticated user' do
+      it 'returns unauthorized' do
+        put "/api/v1/accounts/#{account.id}/labels/#{label.id}",
+            params: valid_params
+
+        expect(response).to have_http_status(:unauthorized)
+      end
+    end
+
+    context 'when it is an authenticated user' do
+      let(:admin) { create(:user, account: account, role: :administrator) }
+
+      it 'updates the label' do
+        patch "/api/v1/accounts/#{account.id}/labels/#{label.id}",
+              headers: admin.create_new_auth_token,
+              params: valid_params,
+              as: :json
+
+        expect(response).to have_http_status(:success)
+        expect(label.reload.title).to eq('Test 2')
       end
     end
   end
diff --git a/spec/factories/labels.rb b/spec/factories/labels.rb
new file mode 100644
index 000000000..4602a8d1d
--- /dev/null
+++ b/spec/factories/labels.rb
@@ -0,0 +1,8 @@
+# frozen_string_literal: true
+
+FactoryBot.define do
+  factory :label do
+    account
+    sequence(:title) { |n| "Label #{n}" }
+  end
+end
diff --git a/spec/models/label_spec.rb b/spec/models/label_spec.rb
new file mode 100644
index 000000000..f44b4e07e
--- /dev/null
+++ b/spec/models/label_spec.rb
@@ -0,0 +1,7 @@
+require 'rails_helper'
+
+RSpec.describe Label, type: :model do
+  describe 'associations' do
+    it { is_expected.to belong_to(:account) }
+  end
+end