Shop and Establishments Registration in India

What is a Shop and Establishment License?

It is one of the most important regulations to which most businesses in India are required to comply. the Shop and Establishment Act, which is enacted state wise. This Act is enacted to regulate the wage payment, working hours, leaves, holidays and other working situations of people employed in the unorganized sector. The Shop and Establishment Act is regulated by the Department of Labor. For Shop and Establishment License or Registration one need to apply online.

What is the objective of the Shops & Establishments Act?

Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.

When is a Shops and Establishments Act license required?

Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. It also acts as basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.

To Which business organisation it applies?

Any profit or non profit organization requires Shop and establishments registration.

The shop & establishment act is applicable to every office and shop where commercial activities are carried on even on employing one employee.

Any Corporate will also be covered under the Shop & Establishment Act. and the provision of leave and other rules shall be applicable, even the company is registered under Companies Act.

Also includes following:

# Societies registered under any other Act;
# Charitable Trusts;
# Educational Institutions;
# Any other establishment or premises in which any services of banking, insurance etc. is carried on.

What are the records to be maintained under the Shops and Establishment Act?

Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays.

These requirements vary from state to state. Returns related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.

What is the procedure to apply for the Shop and Establishment License?

Shop and Establishment License can be obtained by following steps -

# Any shop or establishment that commences its operations is required to apply to the Chief Inspector for Shop and Establishment Act License within the prescribed time.

# The application for the same shall contain the details such as the name of the employer, name and address of the employer, category of establishment, number of employees and other relevant details, as required.

# After due verification and review by the Chief Inspector, a Registration Certificate shall be issued to the occupier.

# The Registration Certificate shall be displayed at the shop or an establishment for which the License is obtained and has to be renewed periodically.

In 2nd Article, we will look at the online links for various states of India, from where we can apply for shop and establishment license.

Comments

  1. Thanks for sharing this nice information regarding Act. It is necessary to do registration of shop in current days. Janak law firm is a powerful team of judges , lawyers, lawyers, lawyers, legal consultants, offering all legal services with consistency and accuracy under one roof. If you are facing any kind of legal problem then you may consider help.

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  3. Thanks for sharing this informative post. To explore more about shop and establishment license click here: apply for shop and establishment license

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