According to the Act, a commercial establishment indicates a place where any business, trade, profession or any work related to it is carried on. Shop
A shop means any premises where goods in wholesale or retail are sold, or services are rendered to people. A shop, however, does not comprise a commercial establishment or a factory. Under this standard, the following establishments fall under the Shop and Establishments Act. Following is a list of commercial establishments and shops needed to be registered under the Shops and Establishment Act:
- societies registered under the Societies Registration Act, 1860
- any premises where the business of banking, insurance, shares and stocks, product exchange and brokerage is carried out. This does not include a factory registered under the factories act, 1948
- contractors and auditors establishments
- educational or other institutes run for private gain
- journalistic and printing establishments
- other places of public amusement or entertainment
- mines and quarries not governed by the Mines Act, 1952
- registered/unregistered charitable trusts
- residential hotels, clubs
- restaurants and eating places
- theatre and other places of public entertainment
Moreover, the concerned state government announces such shops and establishments by a notification in the Official Gazette.
Areas governed by the Shop and Establishment Act Registration
The Shop and Establishment Act governs several areas relating to the operation of a shop or commercial establishment. Some of the critical aspects and rules lay down by The Shop and Establishment Act includes:
- Close days
- Deductions from wages
- Employment of young person or women
- Hours of work
- Interval for rest and meals
- Leave policy
- Lighting and ventilation
- Opening and closing hours
- Precautions against fire
- Prohibition of employment of children
- Record keeping
- Time and conditions of payment of wages
- Wages for holidays
- Weekly holidays
Registration under shops and establishment act
The labour department of respective state regulates the registration under Shops and Establishment Act, and it is compulsory for all commercial structures which do not come within the scope of The Factories Act, 1948. Also, in scenarios, where the workers are working from home, the registration is mandatory to obtain. Most of the state governments have enacted their own law by the state legislative assembly or have adopted legislation passed by other state government relating to shops and establishment. We are rendering professional services relating to registration of the shops and establishment and compliance with various requirements which are required under the respective Shops and Establishment Act. The
applicant who wants to apply for registration under for Shops and Establishment Registration
need to visit the website of the Labour Department having jurisdiction on the registered office of the business entity and all other places of business where employees are employed. The application needs to be filed within 30 days of the establishment of the place of business. Most of the States offers online registration services via the Labor Department of the States.
- For Delhi website click here: http://www.labourcis.nic.in/
- For Mumbai click here: https://mahakamgar.maharashtra.gov.in/lc-registration-of-shops-and-establishments.htm
iii. For Karnataka click here: http://184.108.40.206/ekarmika/static/home.aspx
Each state follows its own registration process. You can know more by visiting the labour department website of your State Government. The license will be needed to be renewed yearly or for any other period stipulated.
Information required for Shop and Establishment License Registration
- Name of business entity
- Address of business entity
- Name of Manager, if any
- Nature of Establishment: Nature of shop, Like Furniture Store, Clothing Store, Restaurant
- Number of Employees in Establishment
- Day of Holiday, etc
Documents needed for registration under the Shops and Establishment Act
Certificate of Incorporation, LLP Agreement of the LLP/MOA & AOA of Company
- Copy of PAN Card of the Company or LLP
- Photo of Owner
- Photo of Shop along with Owner
- Rent Agreement, if Rented
- Electricity Bill
Copy of the License, Permits and Registration which is necessary under any law to be received before commencing the business
Benefits of the Shop and Establishment Registration
- Legal Entity Proof– Each shop or establishment required a legal entity proof like partnership firm or LLP etc. a legal entity proof provides the right of doing business in your region or state.
- Business Bank Account –Every bank used to demand a legal entity proof for opening a current bank account. Each shop and establishment requires to open a separate bank account for the daily transactions according to RBI direction. Hence, based on the shop certificate, you will be able to open a current business bank account easily.
- Smooth inspections-State government and local municipality carry out periodic inspection visits for monitoring the proper operation of shops and establishments along with license as well. If you hold the Shop Act license, then you can swiftly get through the inspections process every time.
- Government Benefits– Each state has a District Industries Center (DIC) which formulates the policy in the individual state for the small businesses. Based on Shop License Registration Certificate, you can easily avail the benefits of government schemes.