Shops & Establishments Registration

The Shop and Establishment Act Registration regulates the organized and unorganized sector in India and keeps a check on the working conditions at the place of work. It applies nationwide to Shop, commercial establishments, hotels, and eateries, restaurants, eating houses, theatres and other places of public amusement or entertainments houses. It governs and lists the rights of employees at the workplace and imposes certain obligations on every employer to comply towards its employees. The shop and establishment registration is a state act and the procedure may vary from state to state. The shop and establishment registration is to be obtained by making an application online on respective state official sites.

The main objectives of the Shop and Establishment Act registration are to secure uniform benefits for employees working in different establishments in an organized manner for the Shop, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment, for the reason being an unorganized sector in India.

The Shop and Establishment registration aims to regulate the day-to-day treatment of employees and set a standard for employment.

The rules and regulations of the Shop and Establishment Act Registration in India

The Shop and Establishment Act registration covers many important aspects of Shop and establishment such as given below:--

It regulates the sets rules for how many hours can be worked on a stretcher day and week,

Issues the guidelines for spread-over, rest interval, opening and closing hours, closed days,

Declares the national and religious holidays,

Regulates the work, rules for employment of children, young persons, and women,

It also sets the rules for annual leave, maternity leave,

It also frames in the industry for the sickness and casual leave, rules for employment and termination of service.

It also issues the manner and method for the maintenance of registers and records and display of notices and obligations of employers as well as employees.

The terms of service and other work conditions of people employed in Shop and commercial establishments.

Registration under the Shop and establishment act.

Renewal of registration under the Shop and establishment act,

GST registration,

MSME registration,

Format and set of legal documents required by startups.

Updates on developments and changes introduced time to time by respective states.

Legal advisory, Compliance calendar applicable to your establishment and much more.

Package 1: Shop ad establishment registration
Rs. 5999 +Government Fees+ GST
Package 2: Shop ad establishment registration+ GST registration + MSME registration+ Assistance in opening of current account + Trademark registration in one class
Rs. 19999 + Government Fees+GST

In order to get the Shop and Establishment Act registration, one needs to provide the following documents:

Identity proof: The PAN card (The PAN shall pertain to the business owner or the business itself),

Address proof: A copy of the rental agreement or sale deed, and

Details of all the employees if any.

Are You Required to obtain the Shop and Establishment License?

Firstly check and understand, if your business, which you are going to establish, is covered under the category of the shop and commercial establishment defined under the Shop and Establishments Act.

If yes, then you are required to the adhere the norms and regulations set by the Act for treatment of their employees.

However, note that the exceptions to the Act may vary from state to state. Check the respective state list of the Shop and establishment as every state has given a list of Shop and establishments to be covered under the Act, such establishments are required to run their business by abiding the rules and regulations pursuant to the Shop and EstablishmentAct.

Thereafter you need to file for registration under the Act, within 30 days of commencement of your establishment.

It gives you a legal recognization.

It essentially forms as a basic license.

It is also proof of your business to apply for other registrations required to run a business in India.

This registration is mandatory for several reasons, including the opening of a current account in a bank.

Also in case, you need to raise an investment through bank loans or from venture capitals, in that case also require the license or registration to prove their validity.

The registration process along with the physical verification may take around 15 to 20 working days in major cities. However, the time duration may vary from and may take longer time, depending upon the state in which you have the establishment of the business.

What all things to keep in mind and to do after obtaining the Shop and Establishment Registration

Be prepared for the inspector visit at the establishment, if required.
It is mandatory that the registration certificate so obtained under the shop and establishment act needs to be displayed in an easily accessible and visible place in the shop.
It must be renewed in the case where any changes have been made with regard to the number of employees’ addition or upon the expiry.
Also in cases where there is any change in the details or the closure of such an establishment, it must be informed to the inspector within 15 days of the said change or closure.
Every State has set different rules and regulations for registration under the shop and establishment Act; however, the basic procedure shall remain the same.
It is also mandatory under the Shop and establishment act that every business gets approval from the Department of Labour of that respective state.

● The inspector may ask for establishment registration certificate under the Shop and Establishment Act.

● He will check the registers and records required to be maintained.

● He will also confirm whether the employees are getting weekly and public holidays or not.

● Shall also check if all employees have been paid wages within the time specified under the act.

● Whether or not the maternity benefits have been given to all eligible women employees

● He will also look into the fact that no illegal deduction has been made.

● Any wrong termination of an employee violating the prescribed procedure under the Act.

● Whether children/women are employed against the provisions of the Act.

● The renewal must be completed before the expiry of the license. You may hire a legal consultancy in this regard, who are well aware of the state laws. In case you wish to establish contact with us click here.

● Go to individual state site for the Shop and establishment act and log in.

● Enter the user Id and password, received or created at the time of registration under the Act.

● Select the registering procedure as an individual or an organization.

● Enter the details and fill in the application with your details and submit.

● Select for renewal of your license.

● Re-upload all your documents as given below:

● The PAN Card of Partners/Directors/Proprietor

● The copy of Rental agreement/Sale deed of commercial space

● The list of Number of employees

● The Name of establishment

● The Registers maintained until now

● The copy of Voter’s ID/Passport/Driver’s License

● The copy of the passport-sized photograph

● The copy of the passport-sized photograph

Make payment of Fees: The fees may vary from state to state.
Now keep a watch and keep checking the status until this status changes to ‘Completed’: After submission, the status will appear ‘Under Scrutiny’, keep a watch until it turns completed.
Download Certificate: You can ‘Download the Certificate’ from the site.