Shop Establishment Registration


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Shop & Establishment Registration

Shop and Establishment Registration is a mandatory requirement for businesses operating in India, under the Shop and Establishment Act of their respective state. It is a type of registration that needs to be obtained by businesses engaged in commercial, trading, or service activities, including shops, hotels, restaurants, entertainment establishments, and other similar establishments.

The registration under the Shop & Establishment is done with the state government and the main objective of this registration is to regulate the working conditions and the employment of persons in the unorganized sector. It also ensures that the rights of employees are protected, and they receive the necessary benefits and privileges.

The Shop & Establishment Registration process varies from state to state and requires businesses to submit details such as the name of the business, its address, the name of the owner, number of employees, working hours, weekly holidays, and other relevant information. After submission of the application, the registration certificate is issued, and the business can start its operations legally.

Shops & Establishment Registration: Genesis and Applicability

  • iconThe shops and establishment Act was enacted to improve the working conditions in shops and other commercial establishments such as hotels, restaurants, other places of public amusements.
  • iconThis Act is covered under Labour Law and its objective is to regulate the unorganised working sector of the country. It is a matter of state legislation. Therefore, each state in India has its own Shops and Establishment Act.
  • iconShops and Establishment Act is applicable to all shops, restaurants, eating at houses, hotels, theatres, other places of public amusement and other commercial establishments.

Meaning of commercial establishment

  • iconCommercial sectors such as banks, trading or insurance establishments.
  • iconHotels, cafes, boarding houses, refreshment houses,
  • iconEntertainment places such as amusement parks etc.
  • iconOther establishment where people are employed or do office work.

Aspects covered under Shops and Establishments Act:

  • iconWorking hours
  • iconWeekly holidays and leave policy
  • iconPayment of wages
  • iconThe terms of service of employees
  • iconAccidents
  • iconRecord keeping
  • iconSanitation, lighting and ventilation at the workplace
  • iconRecord keeping of employees

Documents Required for Shop & Establishment Registration

The specific documents required for Shop Establishment Registration may vary depending on the clients’ specific requirements and the scope of the services being provided by the Compliance Ease. However, some common documents that are often required or requested by for Shop Establishment Registration include:

  • iconProof of Identity: PAN Card, Aadhar Card, or Passport of the owner of the business.
  • iconProof of Address: Electricity bill, water bill, or property tax receipt of the business premises.
  • iconProof of Ownership: Property documents such as sale deed, lease agreement, or rent agreement and NOC.
  • iconBank Account Details: A cancelled cheque or bank statement of the business bank account.
  • iconDetails of Employees: Number of employees, their names, addresses, and other relevant details.
  • iconPhotographs: Passport-size photographs of the business owner.
  • iconCopy of PAN Card: PAN Card copy of the business owner.
  • iconForm: Application form for registration under the Shop and Establishment Act.
  • iconAny other documents as may be required varied with the states.

Bonus Points: The exact documents required may differ from state to state. It is always advisable to check with the concerned state authorities to know the complete list of documents required for Shop and Establishment Registration.

Information to be furnished for Shops and Establishments:

  • iconName of the firm
  • iconAddress of firm
  • iconName of manager/owner
  • iconNature of establishments
  • iconNumber of employees in establishments
  • iconAny other information as may be required

Time limit for application for registration under Shops and Establishments Act

Every eligible establishment needs to register for shops and establishments license within 30 days of the date of commencement of their business to avoid penalties under the Act.

Legal Procedures of Shop & Establishment Registration

The procedure for Shop and Establishment Registration may vary depending on the state in which the business is located. However, the general procedure for registration is as follows:

  • iconVisit the official website of the concerned state's labour department to know the application process and requirements for registration.
  • iconFill the application form as per the instructions provided on the website.
  • iconSubmit the required documents along with the application form to the concerned department.
  • iconPay the registration fee as per the rules of the state government.
  • iconAfter submitting the application form and documents, the authorities will verify the details and documents provided.
  • iconIf everything is in order, the registration certificate will be issued to the business owner.
  • iconThe registration certificate must be displayed at a prominent place in the business premises.
  • iconThe certificate must be renewed periodically as per the rules of the state government.

Bonus Points: It is important to note that the exact procedure for Shop and Establishment Registration may vary from state to state. Business owners are advised to check the official website of the concerned state's labour department for complete details on the registration process. Every state has its own Act, the procedure, fees and forms for registration application differs from state to state.