Shops and Establishments Registration Overview

The Shops and Establishments Act, which is governed by the state's Labor department, defined the entitlements that employees are granted by their employer or management as well as institutionalised the ambiance and condition of the workplace. This is best suited for stores all over India, charitable organisations, lodgings, bistros, eating establishments, eateries, theatres, and all other public entertainment venues. No matter if the business is fully operational or not, every store and foundation must register within 30 days of starting up in accordance with this act.

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Documents required for Shop and Establishment License

  • The front view photograph of the shop/establishment, with the board/name in local language
  • Certificate of Incorporation
  • AOA/MOA of the company/LLP agreement of the company
  • A copy of the PAN card of the business owner/business
  • Copy of the Partners’ consent or the Board resolution
  • List of partners/directors, along with their address & ID proof
  • Proof of Address of the company /proprietorship/partnership/LLP ( lease deed/utility bills etc)
  • Details of the existing employees
 

FAQ

 

What are the records that are to be maintained and kept under the Shop and Establishment Act?

The Employment Register, Details of the Fine Imposed, Advances Issued, Salary Details, Salary Deduction Details, and Holiday's awarded are among the documents and records that must be kept in accordance with the Shop and Establishment Act.

What is a Commercial Establishment?

According to the provisions of the Shop and Establishment Act, the term "Commercial Establishment" refers to establishments in the commercial sector like banks, insurance companies, and trading companies as well as hotels, restaurants, cafes, and refreshment centres. It also refers to places where people go for amusement or entertainment like theatres, movie theatres, or amusement parks.

Is it obligatory to take prior approval from the Labour Department?

Yes, before starting its commercial activities and operations, any company registered under the requirements of the Shop and Establishment Act must receive prior clearance from the labour department.

Where does the owner need to submit the details and information regarding the employees?

Every year, the Municipal Corporation Office must receive all documents and information pertaining to the annual holidays and the number of employees from an individual whose business is registered under the terms of the Shop and Establishment Act.

Is it mandatory to obtain Registration under the Shop and Establishment Act?

In accordance with the Shop and Establishment Act, each business, shop, and establishment must register within 30 days after the start of activities.

What is the objective of the Shop and Establishment Act?

The main goal of this law is to give all employees who work in various businesses—such as stores, commercial locations, residential hotels, restaurants, theatres, etc.—equal privileges and benefits.

What is the Validity Period for a Shop and Establishment License?

A Shop and Establishment License is available for renewal each year after its initial one-year term. Additionally, the laws and guidelines governing the grant and renewal of licences differ from state to state.

Are Factories covered under the ambit of the Shop and Establishment Act?

No, the Shop and Establishment Act's restrictions do not apply to factories.

Do all Shops need to get Registration under the Shop and Establishment Act?

According to the relevant state shop and establishment laws, getting a licence is required for practically all shops and establishments.

If in case a business does not have any employee does it still need to take Registration under the Shop and Establishment Act?

Yes, under the Act, every business and store must get a Shop and Establishment License, regardless of the number of employees employed.

What is the Difference between an Establishment and Shop?

According to the Shop and Establishment Act, the primary distinction is that hotels, theatres, restaurants, and other amusement parks are included under the definition of "establishment." In comparison, a store is a location where you can allow consumers to purchase things and receive services. For instance, warehouses, offices, or storerooms.

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