Shops and Establishment License

The Shops and Establishment Act registration controls various terms of employment such as payment of wages, work hours, the interval for rest, meals, holidays, leave, and other situations of work of individuals working in various establishments. This registration is necessary for each business place of work excluding those who already come under the Factories Act 1948.

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Overview of Shops and Establishment License

The Shops and Establishment Act registration controls various terms of employment such as payment of wages, work hours, the interval for rest, meals, holidays, leave, and other situations of work of individuals working in various establishments. This registration is necessary for each business place of work excluding those who already come under the Factories Act 1948.

Advantages of Shops and Establishment License

 

Legal Entity It acts as a legal entity proof of Shops and other commercial establishments which gives a right for doing business in that particular area
Business Bank account It act as proof of legal entity proof for opening a current bank account
Smooth inspection As state government and local municipality carry out periodic inspection visits for monitoring the proper operation of shops and establishments along with license as well
Compliance Shops and Establishment Registration Certificate does not require any compliance. One-time
Online Registration Online Registration under Shops and Establishment makes whole process hassle-free and time-efficient

Registration Process

Step 1: Login to the Labour Department Website

Registration process is Online in many states and in some state semi online. Every state has Labour Department Website and online Registration form is available thereon with instructions.

Step 2: Download the Application Form

Firstly, download the application form for the registration from the official website of the respective state in which the said shop or establishment is located.

Step 3: Fill in all the Required Details

Name of the Proposed Shop and Establishment

The Name and Details of the concerned employer

Name and Details of all the Employees working at that time

Address proof of the Registered Establishment together with the NOC (No-Objection Certificate) or the Rent Agreement.

Step 4: Uploading documents

Upload required Documents online after fill up the form. In some states, documents along with Printout of the application form needs to submitted physically.

Step 5: Inspection

The Labour Department examines your application. Sometimes, In order to verify the particulars you filled up and documents attached, an Inspector is appointed to carry out inspection of your business premises.

Step 6: Approval & Issue of License

After Examination of your application and/or Inspection of business premises. Authority approves your application and grant a License with validity (valid for 1 year with renewal every year)

Required Documents

  •         Aadhar Card / Voter ID/ Driving License
  •         Photo of Shop with owner
  •         Rent Agreement (Electricity bill if rented)
  •         Shop or Business Address Proof
  •         PAN Card
  •         Payment Challan

Additional Business licenses necessary to start a business(Certificate of Incorporation (COI), Memorandum of Association(MOA), Articles of Association(AOA), Limited Liability Agreement(LLP)

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FAQ's Shops and Establishment License :-

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.
Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a 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.
These are the government fees applicable for registration under Shop and Establishment Act. These depend on the state and the number of employees.

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Rajesh Srivastava
Rajesh Srivastava
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