Shop & Establishment Registration

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How to Start Shop and Establishment Act Registration

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An Overview

Shops Establishment registration is a state based registration, which is required while establishing a shop, hotel or any commercial place in that particular state. It is mandatory for every new shop establishment to get itself registered under the Shops and Establishment Act and get the license within 30 days from the commencement of the work.

It is governed by the labour departments of each state, the Shops and Establishments Act institutionalized the ambience and the state of the work environment and also established the privileges employees are allowed by their company or the management. This act is best suited for shops all over India, every benefit- making foundation, lodgings, bistros, eating circles and joints, eateries, cinemas and for all public places of entertainment. It is a must for every establishment and foundation to enlist oneself within 30 days of commencing under the act irrespective of the business being fully functional or not.
The main objectives of Shop Establishment Registration are:

  • To work according with the state law.
  • To secure uniform benefits for employees working in different establishments./li>

What are the Records to be maintained Under the Shops and Establishment Act?

  • Employee register and full details

  • Payroll records - salary details, deduction, leave, overtime, fines, holidays, advance salaries

  • Attendance

  • All other details related to an employee

  • All other allied registers.

Why is it required to obtain Shop and Establishment License?

Every shop and commercial establishment requires obtaining this license for the following reasons:

  • Bank Account: Usually a bank account opened for the business purpose requires this form of license. Hence it is crucial, that the applicant ensures to file the application within the prescribed time. The applicant has to register under the shop and establishment license usually within 30 days of commencing the business.

  • Inspection: Apart from the bank account requirement, businesses having this license would not have any problems and issues during inspection by the department inspector. Hence businesses have to consider this license immediately after commencing business.

  • Compliance: Compliance with this form of registration is mandatory. Any shop or establishment complying with the above requirement would have minimum issues with government agencies and departments.

Top Four Features of the Shops and Establishment Act

  1. The fundamental objective of the act: One of the fundamental purposes behind the Shops and Establishments Act, thereby mandating establishment registration, is to make sure all employees are given equal rights and benefits in all foundations, be it the offices, movie theatres, or other places of entertainment.

  2. The protocols of the Shops and Establishments Act and establishment registration: The Shops and Establishments Act comes under the labour laws, and frames the rules for employers to carefully heed to the number of working hours day-by-day and consistently adhere to the stipulated times for opening and shutting establishments. It also requires the management to observe national and religious leaves, set guidelines for the enlistment of juveniles and women, leaves for maternity, and casual leaves.

  3. Upkeep of records under the Shops and Establishments Act: All organizations need to request for the approval or endorsement of the labour department and be up-to-date on the particulars of hiring, pay, credit reductions, leaves, and so forth, under the Shops and Establishments Act. Nevertheless, these guidelines may vary from one state to the other.

  4. Authorise prerequisite for the Shops and Establishments Act & establishment registration process: In accordance with the labour laws, a permit issued under the Shops and Establishments Act is an obligatory prerequisite and, along these lines, all shops and foundations should register under the Act within 30 days from the date of commencing operations.

What Are Essential for Obtaining Shop Establishment in India

  1. Name of both the Employee and the Manager

  2. Postal Address of the said Establishment

  3. Name of the Establishment

  4. Category of Establishments such as the restaurant, amusement park, hotel etc.

  5. The number of Employee working.

Documents Required

DocShop_Establishment

The documents required for the registration under Shop and Establishment Act are as follows:

  • Employer’s identity proof in the form Aadhar Card, PAN (Permanent Account Number) Card, Driving License, Voter ID.

  • Employer’s passport-sized photograph.

  • Photo of the Establishment or Shop.

  • Copy of Rent Agreement or Lease Deed is required in case of rented property.

  • Any Utility Bill in the form of Electricity Bill, Water Tax Receipt of the working premises. However, the said utility bill should not be two months older.

Other Documents Required Other Than These Documents for the Concerned Business or Establishment or Business

  • In case of a Trust, a list of number of Trustees

  • Memorandum of Association (MOA).

  • In the case of a Co-operative Society, a list of number of Members and Chairman.

  • Partnership deed with all the vital information regarding the firm’s name, name, and signature of all the partners along with the share percentage of each partner.

  • A copy of the permission granted by RBI (Reserve Bank of India).

  • A copy of the Certificate of Incorporation (COI) issued under the Companies Act, 2013.

  • A copy of the COR (Certificate of Registration) granted by the Charity Commissioner.

  • A Resolution showing the list of Designated Directors.

  • A Resolution concerning the commencement of the society’s business.

  • RTO Transportation Permit.

  • FSSAI license.

  • Drug license.

  • A copy of the permission granted by the collector.

  • NOC (No-Objection Certificate) issued by the Police Department for the opening of a Cybercafe.

  • IEC (Import Export Code) certificate.

  • NOC (No-Objection Certificate) issued by the Municipal Corporation for the opening of a Flour and Masala Mill.

  • Excise License required for the opening of a beer bar, restaurant or a wine shop.

  • A Certificate issued by the SEBI (Securities Exchange Board of India) to the Share Broker.

  • License issued by the Police Department for the opening of Security Services.

The Procedure for Obtaining Shop and Establishment License Is Discussed Below

  • Download the Application Form: First and foremost step is to download the application form for the registration from the official website of the respective state in which the said shop or establishment is located.

  • Fill in all the Required Details: In the next step, the owner of the business is required to fill all the necessary details asked. The term necessary details include the following listed :

    1. Name of the Proposed Shop and Establishment

    2. Name and Details of the concerned employer

    3. Name and Details of al the Employees working at that time

    4. Address proof of the Registered Establishment together with the NOC (No-Objection Certificate) or the Rent Agreement, only in the case where the place is rented premises.

    5. PAN card details of the concerned employer.

  • Submit the Application Form: Once the owner or the employer have fills all the required details accurately, then in the next step he or she needs to submit the said application form either to the Inspector in-charge or the Chief Inspector of the Shop and Establishment Act together with prescribed amount as fees.

  • Verification of the Application Submitted: After the submission, the application along with all the documents submitted will be verified and checked by the higher authorities.

  • Issuance of License: If in case, all the documents submitted along with the applications are in accordance to the requirements of the said act, then a certificate of registration shall be issued to the proposed shop or establishment.

Note: However, the process of obtaining registration might take around 15 to 20 working days in the major city areas. However, the same may vary from one state to another.

Benefits Related to the Shop and Establishment License

  • Shop License provides Legal Acknowledgment to the particular shop or establishment.

  • It acts as an essential Registration for further registrations.

  • This license acts as a business proof. Hence, it helps in obtaining additional registrations in India.

  • Further, shops cannot open a bank account without a Shop and Establishment License. Hence a Shop and Establishment License is mandatory for opening a bank account in the name of shop or establishment.

  • Shop License helps in raising investments by way of Venture Capitals or Loans for the proposed business establishment.

  • Compliance: All businesses and shops secure this license to comply with the requirements of the act. Apart from this, every individual requires this form of registration based on the requirements of the state.

  • Further Registration becomes Simple: Securing this license would enable the business with seamless registration. Securing prospective registration becomes simple with this form of registration.

  • Proof of Establishment: Any shop or establishment, with this license will be reputed in the eyes of the public. The shop or business would have some form of proof of evidence of establishment through this license.

  • Bank Account: It is compulsory to secure this form of license to open a business bank account. Usually, banks would require this license for registering the bank account. Hence under this process, it is compulsory to open the bank account. Apart from this banks, would provide some form of incentives to shops and commercial establishments.

  • Raising Loans: Usually a registered shop and establishment can secure loan facilities from banks seamlessly when compared to an unregistered business. Apart from this, there are different forms of benefits availed by registering the establishment.

Why Legal Tax?

  • Our experts provide a detailed explanation about the registration process and required documentation.

  • We prepare your application and work with you to gather all of the necessary employee and shop information.

  • We process your shop registration and send it to the labour department, either online or in person, as required.

  • We keep you updated on your status.

  • Following acceptance, the shop licence certificate is sent via courier or in person.

  • The Fee charged by Legal Tax is very less as compared to other organizations i.e. 1499/-.

FAQ's

EPOS is an abbreviation for electronic point of sale. Basically, any computerized system used to record sales and control inventory.
These are brands owned not by a manufacturer, but by a retailer or supplier. Retailers and suppliers purchase the goods, then label and market them under their name.
It will take 5 to 7 working days to file the documents with respective authorities and get the registration done.
The validity of Shop license depends on the respective state shop and establishment act.
Factories are not covered by the Shop and Commercial Establishments Act regulated by the Factories Act.
Almost all shops and businesses need to take shop license under respective state shop and commercial establishment act.
The documents required for the registration under Shop and Establishment Act are as follows:
  • Employer’s identity proof in the form Aadhar Card, PAN (Permanent Account Number) Card, Driving License, Voter ID.

  • Employer’s passport-sized photograph.

  • Photo of the Establishment or Shop.

  • Copy of Rent Agreement or Lease Deed is required in case of rented property.

  • Any Utility Bill in the form of Electricity Bill, Water Tax Receipt of the working premises. However, the said utility bill should not be two months older.

  • Shop License provides Legal Acknowledgment to the particular shop or establishment.

  • It acts as an essential Registration for further registrations.

  • This license acts as a business proof. Hence, it helps in obtaining additional registrations in India.

  • Further, shops cannot open a bank account without a Shop and Establishment License. Hence a Shop and Establishment License is mandatory for opening a bank account in the name of shop or establishment.

  • Shop License helps in raising investments by way of Venture Capitals or Loans for the proposed business establishment.

  • Compliance: All businesses and shops secure this license to comply with the requirements of the act. Apart from this, every individual requires this form of registration based on the requirements of the state.

  • Further Registration becomes Simple: Securing this license would enable the business with seamless registration. Securing prospective registration becomes simple with this form of registration.

  • Proof of Establishment: Any shop or establishment, with this license will be reputed in the eyes of the public. The shop or business would have some form of proof of evidence of establishment through this license.

  • Bank Account: It is compulsory to secure this form of license to open a business bank account. Usually, banks would require this license for registering the bank account. Hence under this process, it is compulsory to open the bank account. Apart from this banks, would provide some form of incentives to shops and commercial establishments.

  • Raising Loans: Usually a registered shop and establishment can secure loan facilities from banks seamlessly when compared to an unregistered business. Apart from this, there are different forms of benefits availed by registering the establishment.

  • Our experts provide a detailed explanation about the registration process and required documentation.

  • We prepare your application and work with you to gather all of the necessary employee and shop information.

  • We process your shop registration and send it to the labour department, either online or in person, as required.

  • We keep you updated on your status.

  • Following acceptance, the shop licence certificate is sent via courier or in person.

  • The Fee charged by Legal Tax is very less as compared to other organizations i.e. 1499/-.

The fee charged is 1499/- only.
All shops irrespective of the number of employees if applicable needs to take the license.
The documents and records that are mandatory to be maintained under the Shop and Establishment Act include Employment Register, Details of the Fine imposed, Advances Issued, Salary Details, Salary Deduction Details, and Holiday’s awarded.
As per the provisions of the Shop and Establishment Act, the term “Commercial Establishment” denotes commercial sector such as banking, insurance, and trading establishments; hotels, eateries, cafes, and refreshment houses; establishments wherein employees either do office work or provide service; and amusement and entertainment places such as cinema halls, theatres or amusement parks.
Yes, every business registered under the provisions of the Shop and Establishment Act needs to take prior approval from the labour department before commencing its business affairs and operations.
The primary objective of this act is to provide uniform privileges and benefits for all employees working in different establishments, shops, commercial places, residential hotels, restaurants, theatres, etc.
A Shop and Establishment License remains valid for a period of one year, and the same is eligible to get renewed every year. Further, the rules and regulations regarding the issuance and renewal of licenses vary from one state to another.
Yes, it is mandatory for almost all the shops and establishments to obtain a shop and establishment license under the respective state shop and establishment act.
The term establishment comprises of hotels, restaurants, theatres, and other amusement parks, whereas a factory is a place that has been founded by a company explicitly to manufacture and produce goods sold by that company. Further, an establishment may not necessarily be considered as a factory. However, a factory can be considered as an establishment.
The basic difference as per the provisions of the Shop and Establishment Act is that the term “establishment” comprises of hotels, theatres, restaurants, and other amusement parks. In contrast, a shop is a premise where you can sell goods and offer services to your customers. For example: storerooms, offices, or warehouses.
Yes there is penalty imposed for not obtaining such a license that too vary from state to state.
Starting your business without a Shop and Establishment License is very dangerous and risky as there are chances that regulatory authorities might seal and close your business. Moreover, there are high chances that you will either be levied hefty fines and penalties or even face litigation if found operating without a license.
Yes, an individual can open a current bank account with the help of a shop and establishment certificate. Moreover, every bank considered this certificate as valid documentary proof.
No, there is no need for you to be physically present at our office to obtain Shop and Establishment License as the entire license process is online based. All you need to submit the necessary documents as required in the portal.
Yes, the registration certificate issued under this act is liable to be renewed.

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