Shop and Establishment License

Shop and Establishment License

  • On call discussion about the requirement.
  • Liaising with Govt. Dept.
  • End to end follow-up.
  • Turnaround time 15 Working days.
  • Shop Establishment License Filing
  • On call discussion about the requirement.
  • Liaising with Govt. Dept.
  • End to end follow-up.
  • Turnaround time 15 Working days.
  • Shop Establishment License Filing

Shop and Establishment License - An Overview

Nowadays, in India, most of the businesses, such as the shops, restaurants, cafes, eateries, etc., are regulated and governed by the provisions of the Shop and Establishment Act, and hence, are mandatorily required to obtain Shop and Establishment License. However, it shall be pertinent to take into consideration that it is regulated by State Act, and the rules and regulations vary from one state to another state. Further, this act aims at providing proper and adequate working conditions to the laborers employed and also taking care of their wages, holidays, and many essential rights.

What is a Shop and Establishment License?

A Shop Establishment Certificate is required when an entity or a business starts employing people as full -time employees, casual workers, contract-based, etc., to regulate and administer the working conditions and also to ensure that their rights are protected. Moreover, it is also known as the Shop License informally.

Hence, the phrase “Shop and Establishment License” refers to a Certificate or License issued to the business, professions, and trade registered under the provisions Shop and Establishment Act. Further, it is noteworthy to note that all the rules and regulations of this Act are governed and administered by the Department of Labour.

Furthermore, this Department not only regulates the commercial establishments but also keeps an eye on the working of the charitable trusts, educational institutions, societies, and other premises like the insurance companies, banking, stock exchanges, share brokerages, etc.

What is a Shop and Establishment Registration?

The Shop Establishment Registration is a registration based on State Shop and Establishment Act. The same is needed while starting a shop, hotel, eateries, or any other commercial place. Further, obtaining registration under the Shops and Establishment Act is necessary for every new shop or establishment.

Furthermore, one is required to obtain this license within a period of 30 days starting from the day of commencement of work. Lastly, the validity of a Shop Establishment License is for one year, and the same can be renewed every year. However, the rules and regulations concerning renewal vary from one state to another state. Know the complete difference between Trade license & shop & Establishment license.

Objectives of the Shop and Establishment Act

The following listed are the objectives annexed with the Shop and Establishment Act License:

  • The main aim behind the Shop and Establishment Registration is to protect the rights and to provide benefits to the employees working in an organized sector such as hotels, establishments, and restaurants along with in the unorganized sectors.
  • Additionally, the Shop and Establishment Registration aims at regulating and administering the day-to-day employees’ treatment and also to set better standards for employment.

Why is it Mandatory to obtain Shop and Establishment Registration in India?

Usually, for opening a current bank account in the name of the proposed business with the bank, people obtain registration under the Shop and Establishment Act.

Moreover, besides opening a bank account, it is more significant to have this license, or else the inspector inspecting the business premises may cause unnecessary problems for the said businessman.

Documents Required

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

Other documents needed as per the concerned business or establishment or business:

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Benefits of Shop and Establishment Registration

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Frequently Asked Questions

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, shop, and establishment needs to obtain registration under the Shop and Establishment Act within a period of 30 days from the date of commencement of 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.

No, a factory is not covered under the provisions of the 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.