Shop And Establishment - Entrepreneurcell

Shop And Establishment Registration Online In India

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Shop and Establishment Registration process

It is very easy and simple to register a Shop and Establishment with the below mentioned steps.

Our experts will help you in understanding your business structure.

Step 1

Our experts will file the application with provided documents.

Step 2

After successful document verification, certificate is issued.

Step 3

What is the Shop and Establishment Act?

The Shop & Establishment Certificate describes a type of legal permission to business, the right to perform work in a particular state or place. It is essential to obtain a Certificate for an individual who has their own shop, office, factory, Godown etc. The licensing acts as legal proof of a specific business being done at that place.

The Shop and Establishment Act in India is encouraged by the state governments, but it is a bit different from state to state. Hence, all the commercial establishments and shops operating within each state must register themselves under the Shop and Establishment Act within 30 days of business commencement otherwise heavy penalties will be levied by the labour departments.

What is the Applicability of the Shop and Establishment Act?

The New Shop & Establishment Certificate applies to all shops, eating houses,
restaurants, hotels, public places, entertainment and amusement, theatres, and other
commercial establishments. All the mentioned establishments need to be registered under
the Act within 30 days of the beginning of work.

The shop and establishment Act essentially modulates the following:-

Hours of the work

Deductions/Payment of wages

Working condition of employees

Leaves and holidays they obtain

Prohibition of employment of children

Employment of young person or women

Cleanliness, lightning, and ventilation of the establishment

Precautions in place against fire accidents or first aid kit

What are the benefits of the Shop and Establishment Act?

The shop and establishment registration certificate acts as a legal entity proof that gives businesses the right to conduct business in a specific state.
This Certificate acts as legal proof for opening a current account, gaining customer’s trust, showing credibility of businesses
The Shop and Commercial Establishment Certificate opens the gateway to the government benefits for small businesses which are set up by the department of industries and commerce.

Which are the essential documents required to obtain a New Shop Act License?

To register your shop or establishment under the Shop Act Registration. We need a
number of documents required to be submitted for this registration which is as indexed
below:-

Requirements Shop and Establishment
Aadhar Card
PAN Card
Address proof like NOC/Lease agreement from the owner and the electricity bil
PAN card of the Firm/Company
Proprietor’s/Partner’s/Director’s ID proof and address proof
MOA/AOA/Partnership deed

Process:

Step 1:- Application filing:

If any individual engaged himself or herself in any business activity like opening shops, factories, offices, godown or office then they have to file the application for Shop & establishment Registration with the labour inspector within the specified time period.

Step 2:- Application Submission:

After filing an application online, a certain amount should be paid to the state government for application submission. After submitting the application, the labour inspector will review the application, inspect the place for issuing the final certificate.

Step 3:- Certificate issued:

After successfully reviewing the application, the labour inspector will approve the application and a registration certificate will be issued.

Step 4:- Display on shop:

The New Shop Act Certificate issued should be clearly displayed at the shop or
commercial establishment and must be renewed on time under this act.

The application for the registration in the prescribed form must consist of:-

Name of employer

Address establishment

Category of establishment

Number of employees

Other details that might be asked for

Eligibility of Business:

Commercial establishments

Shops

Restaurants

Theaters

Other places of public entertainment

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Q. When is the shop and establishment act license required?

A. Every shop and establishment needs to be registered itself compulsorily under this act within 30 days of the beginning of work. This is proof of commercial business.

Q. Do we need to renew the Shop & Establishment License?

A. Yes, every shop act registration needs to be renewed on yearly basis depending on the state.

Q. Which establishments will fall under the jurisdiction of the Shop Act Registration?

A. Under the Shop Act, the premises governed include restaurants, shops, residential hotels, clubs, commercial establishments, eating houses, and other places for public entertainment or amusement.

Q. Does the act apply to any establishment run by the state government or central government of India?

A. No, all premises are run by the GOI, and state governments are exempted from the provisions of the Shops and Commercial Establishment Act.

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