Shop & Establishment Registration

Shop and Establishment Registration is a mandatory requirement for businesses operating in India, under the Shop and Establishment Act of their respective state. It is a type of registration that needs to be obtained by businesses engaged in commercial, trading, or service activities, including shops, hotels, restaurants, entertainment establishments, and other similar establishments.

The registration under the Shop & Establishment is done with the state government and the main objective of this registration is to regulate the working conditions and the employment of persons in the unorganized sector. It also ensures that the rights of employees are protected, and they receive the necessary benefits and privileges.

The Shop & Establishment Registration process varies from state to state and requires businesses to submit details such as the name of the business, its address, the name of the owner, number of employees, working hours, weekly holidays, and other relevant information. After submission of the application, the registration certificate is issued, and the business can start its operations legally.

Shops & Establishment Registration: Genesis and Applicability

The shops and establishment Act was enacted to improve the working conditions in shops and other commercial establishments such as hotels, restaurants, other places of public amusements.
This Act is covered under Labour Law and its objective is to regulate the unorganised working sector of the country. It is a matter of state legislation. Therefore, each state in India has its own Shops and Establishment Act.
Shops and Establishment Act is applicable to all shops, restaurants, eating at houses, hotels, theatres, other places of public amusement and other commercial establishments.

Meaning of commercial establishment

Commercial sectors such as banks, trading or insurance establishments.
Hotels, cafes, boarding houses, refreshment houses,
Entertainment places such as amusement parks etc.
Other establishment where people are employed or do office work.

Aspects covered under Shops and Establishments Act:

Working hours
Weekly holidays and leave policy
Payment of wages
The terms of service of employees
Accidents
Record keeping
Sanitation, lighting and ventilation at the workplace
Record keeping of employees

Documents Required for Shop & Establishment Registration

The specific documents required for Shop Establishment Registration may vary depending on the clients’ specific requirements and the scope of the services being provided by the Compliance Calendar. However, some common documents that are often required or requested by for Shop Establishment Registration include:

Proof of Identity: PAN Card, Aadhar Card, or Passport of the owner of the business.
Proof of Address: Electricity bill, water bill, or property tax receipt of the business premises.
Proof of Ownership: Property documents such as sale deed, lease agreement, or rent agreement and NOC.
Bank Account Details: A cancelled cheque or bank statement of the business bank account.
Details of Employees: Number of employees, their names, addresses, and other relevant details.
Photographs: Passport-size photographs of the business owner.
Copy of PAN Card: PAN Card copy of the business owner.
Form: Application form for registration under the Shop and Establishment Act.
Any other documents as may be required varied with the states.

Bonus Points: The exact documents required may differ from state to state. It is always advisable to check with the concerned state authorities to know the complete list of documents required for Shop and Establishment Registration.

Information to be furnished for Shops and Establishments:

Name of the firm
Address of firm
Name of manager/owner
Nature of establishments
Number of employees in establishments
Any other information as may be required

Time limit for application for registration under Shops and Establishments Act

Every eligible establishment needs to register for shops and establishments license within 30 days of the date of commencement of their business to avoid penalties under the Act.

Legal Procedures of Shop & Establishment Registration

The procedure for Shop and Establishment Registration may vary depending on the state in which the business is located. However, the general procedure for registration is as follows:

Visit the official website of the concerned state's labour department to know the application process and requirements for registration.
Fill the application form as per the instructions provided on the website.
Submit the required documents along with the application form to the concerned department.
Pay the registration fee as per the rules of the state government.
After submitting the application form and documents, the authorities will verify the details and documents provided.
If everything is in order, the registration certificate will be issued to the business owner.
The registration certificate must be displayed at a prominent place in the business premises.
The certificate must be renewed periodically as per the rules of the state government.

Bonus Points: It is important to note that the exact procedure for Shop and Establishment Registration may vary from state to state. Business owners are advised to check the official website of the concerned state's labour department for complete details on the registration process. Every state has its own Act, the procedure, fees and forms for registration application differs from state to state.

Frequently Asked Questions (FAQs)

Who is required to obtain Shop and Establishment Registration?

Businesses engaged in commercial, trading, or service activities such as shops, hotels, restaurants, entertainment establishments, and other similar establishments are required to obtain Shop and Establishment Registration.

What is the purpose of Shop and Establishment Registration?

The purpose of Shop and Establishment Registration is to regulate the working conditions and the employment of persons in the unorganized sector. It also ensures that the rights of employees are protected, and they receive the necessary benefits and privileges.

Is Shop and Establishment Registration mandatory for all businesses?

Yes, Shop and Establishment Registration is mandatory for all businesses engaged in commercial, trading, or service activities.

Can a business operate without Shop and Establishment Registration?

No, it is illegal to operate a business without Shop and Establishment Registration. It is a mandatory requirement under the Shop and Establishment Act of the respective state.

What is the validity of Shop and Establishment Registration?

The validity of Shop and Establishment Registration varies from state to state. It usually ranges from 1 to 5 years, after which it must be renewed.

Is there any penalty for non-compliance with Shop and Establishment Registration?

Yes, non-compliance with Shop and Establishment Registration can lead to penalties, fines, or legal action against the business owner.

Can a business have multiple registrations under the Shop and Establishment Act?

No, a business can have only one registration under the Shop and Establishment Act, even if it has multiple branches or establishments.

Can the details provided in the Shop and Establishment Registration be updated?

Yes, the details provided in the Shop and Establishment Registration can be updated by submitting a request to the concerned department along with the required documents.

What is the fee for shops and establishment registration?

The fees for shops and establishment registration differs from state to state, there is no fixed rate of registration at country level. It depends upon various factors such as:

The Shops and Establishment Act of respective state.
Number of workers in the business or establishment
At the discretion of inspector in charge

What are the benefits of Shops and Establishment Registration?

There are numerous benefits of shops and establishments registration some of which are pointed below:

The registration helps in opening of bank account of establishment.
Registration certificate act as a legal proof which helps in obtaining other governmental licenses.
It opens the opportunity for government grants and helps for promotion of small businesses.
It helps in raising loans and investments by way of venture capitals.

Is Shops and Establishment Act registration being applicable to government establishments?

No, as per the provisions of Shops and Establishment Act, the establishments run by Government of India or State Government are exempt from the provisions of the Act.

What is the objective of Shops and Establishments Act?

The Prime objective of shops and establishments Act is to provide privileges and better working conditions to employees and workers of commercial establishments.

What is the validity period of registration issued under Shops and Establishments Act?

The registration certificate issued under Shops and Establishment Act is generally valid for one year (some states offer multiple years) and is open for renewal for infinite number of times.

Can you help us in the Shops & Establishment Registration?

Compliance Calendar LLP have a team of Professionals and can help you in the Shops & Establishment Registration. We have a dedicated team which independently handles the matters related to Shops and Establishment Act of different states. For any queries, feel free to reach out at info@ccoffice.in or connect at 9988424211.