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Shop And Establishment Act

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Overview

The main objective behind the registration of Shop and Establishment Act is to provide uniform benefits to the employees working in various establishments. Whether you are a small business or a big entity, you must register your Shop under Shop and establishment act. Registration for Shop and Establishment now can be done online. Every state in India has some rules to file for shop and establishment Act. If you are registering in a particular state, you need to follow the prescribed method of that state.

Establishments that must register under Shop and Establishment Act

As per the regulations for the Shop and Establishments, the establishments that must register are:

1) Shops

2) All the commercial establishments like malls, showrooms, outlets, and many more

3) Residential establishments like hotels. Lodges, motels

4) Restaurants

5) Public amusement establishments like theatre and other business

Registering under the Shop and Establishment Act also proves the existence of the business. Thus, it is essential that all the business must register under Shop and Establishment Act.

Shop and Establishment Act is also used for some other purposes such as;

1) Providing national holidays to the employee

2) Recording the over-time done by any employee

3) Recording the working hours of the employees

4) Providing intervals for rest and meals

5) Prevention of children employment

6) Regulating terms and conditions to the customers

7) Offering employment to youngsters and women

8) Maintenance of opening and closing hours

9) Conditions for providing salary

10) Offering weekly holidays to the employee

11) Providing paid holidays

12) Maintaining a routine time of payment

13) Leave policy

14) Dismissal

15) Ensuring proper lighting and ventilation.’

16) Taking all the measures for fire

17) Accidents and many more

Eligibility for registration of Shop and Establishment

According Shop and Establishment Act, every Shop and establishments in India must register itself under this Act. If you want to start a shop or Establishment, you must register yourself within 30 days of commencement of work. Registration under Shop and Establishment Act is a basic license that states the proof of existence. For example, if you open a bank account, you have to provide PAN of the business owner, rental agreement, details of the employees, sale deed, and many more. The Establishment governed by this Acts are Shops, commercial Establishments, Hotels, restaurants, clubs, eating houses, theatre, and many more. However, the Establishments that falls under the factories Act, 1948, did not need to register under the Shop and Establishment Act.

Perks of registering under Shop and Establishment Act

Proof of existence as a legal entity:

In order to avail all the benefits, all the Shop or establishments requires a legal entity proof. It helps them to get recognition in various programs. It also offers the right to do business in a particular area. Whether it is in your locality or any part of the stat, registration under Shop and Establishment Act, offer all right to commence business.

Opening business Bank account: 

Every Bank in India will ask for legal proof for opening a current account. And as per the RBI compliance, every Shop and Establishment in India must open a separate bank account on the name of their business. Thus, registering under Shop and Establishment Act will offer you a certificate to open a bank account.

Easy Inspections:

The state government and the local authorities conduct routine inspections to ensure the adequate working of the shops. It includes the checking of the license as well. Thus, registering under the Shop and Establishment Act will help you easily function.

Government benefits:

Every state in India has a DIC department that creates policy. It includes all the government benefits for Shops and Establishments. Thus based on shop License, any business can avail benefits from the government.

Registration under Shop and Establishment Act

Every state in India has different regulations. The fee for registration also may vary. So, you can find different steps for different states. But all the shops must file the registration within 30 days of starting the business. The owner of the Shop should always send an application to the inspector-in-charge. The application must be in the form as prescribed by the state government or local authority.

The application form for registering under Shop and Establishment Act must include details like:

1) Owner’s name

2) Establishment/Shop Name

3) Address of the Shop/Establishment

4) The Category or the type that it belongs to

5) Details about all the employees working in the Establishment

6) Date of starting the business

The labor department of all the states processes the applications. The officers in the local district labor office usually take charge of the inspections. They are also the ones who will issue the Shop and Establishment registration certificate. The fee for a complete process may depend upon the number of workers in the Establishment.

The Inspector in charge will verify the application submitted by the owner. If your application meets all the conditions, the Inspector in charge will issue you a certificate of registration.

The registration certificate must be displayed at the shop/ Establishment. It will make it easier for the local authority during a routine inspection. However, if any business plans to close the business, they have to notify the Inspector-in-charge within 15 days of closing. In such cases, the legal authority will cancel the registration. And will remove the name from the register. Similarly, if you want to make any changes, you have to inform the Inspector in charge within 15 days of making any changes. The Inspector will verify and issue you a new certificate of registration.

Amendment in the registration of Shop and establishments

If any business wants to make any amendments, then they must intimate it to the Inspector in charge. All the businesses have to inform within the prescribed time. Similarly, if any business wants to close the Establishment, they must inform the concerned authority. They have to surrender their registration to cancel it. After reviewing your application, the officer will cancel your registration.

Records that the businesses must maintain under Shop and Establishment Act

According to the Shop and Establishment Act, every business has to obtain permission from the department of labor. They must keep the register up-to-date about all the details. It includes details of employment, fines, deductions, salary, advances, and holidays. This requirement may vary from one state to another. The files about annual holidays and number of employees should be submitted to the municipal corporations every year.            

Document Required

  • Photo of the Shop/Establishment at the entrance with the name written in local language
  • Certificate of Integration
  • Memorandum of association
  • Articles of Association
  • LLP agreement if it is an LLP
  • Copy of PAN
  • Details about the director/partners
  • Identity proof of the directors or partners
  • Address proof of the directors or partners
  • A copy of board resolution/partners consent passed in a meeting
  • Address proof of the LLP/Company/partnerships
  • Details about all the employees if you have any

Time Lines

  • (10 to 15 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with registrar authorities
  • Receipt of Registration Certificate
  • Confirmation to client

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