Lets Get Some initial knowledge about Registration under Shop and Establishment to start your small or big start-up. Article explains Why to Register under Shop & Establishment, Applicability of Shop & Establishment Registration, Registration under Shop & Establishment Act, Features or Benefits of the Shop & Establishment Registration, Documents Required for Shop & Establishment Registration, Amendment in Shop & Establishment Registration and Records to be Maintained under Shop & Establishment Registration.

Why to Register under Shop & Establishment?

The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment. Whether a business is small or big IF you choose to register your shop under a Shop and Establishment act then you need to visit the website or the State government office to complete the Registration Formality in A Method prescribed by the State Government. Every Indian state has enacted certain rules and regulations with regard to conditions of work.

Applicability of Shop & Establishment Registration

Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account. To get this license, you would need to provide the PAN card of the business owner or the business itself, a copy of the rental agreement or sale deed, and details of all the employees. Premises governed by the Act are shops, commercial establishments, residential hotels, clubs, restaurants, eating houses, theaters and other places of public amusement or entertainment etc. except those who falls under Factories Act 1948.

Registration under Shop & Establishment Act

The Shop and Establishment Act registration regulates hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments for public entertainment or amusement and other establishments and to provide for certain matters connected therewith. This registration is compulsory for every business place of work except those who falls under Factories Act 1948. It is a state regulation and each state has separate shop & establishment regulation.

Features or Benefits of the Shop & Establishment Registration

1. Legal Entity Proof – Each shop or business required a legal entity proof like proprietorship firm or partnership firm etc. a legal entity proof which gives the right for doing the business in your area or state for the same.

2. Business Bank Account –Every banks is required a legal entity proof to open a current bank account. Each shop & Establishment has to open a separate bank account for the daily transactions as per the RBI Compliance. So on the basis of the shop certificate you can easily open a current business bank account.

3. Smooth inspections -State government and local municipality conduct regular inspection visits for checking the proper working of shops and establishments along with license as well. If you have the Shop Act license, then you can quickly get over the inspections every time.

4. Government Benefits – Each state have a DIC Department which creates the policy in the respective state for the all small business. On the basis of Shop License Registration Certificate you can easily avail the government benefits.

Documents Required for Shop & Establishment Registration

  • Photograph of the Shop or Establishment at the entrance with Name Board in local language
  • Certificate of Incorporation, MOA & AOA of Company / LLP Agreement of the Company or LLP
  • Copy of PAN card
  • List of Directors or Partners and their ID & Address proof
  • Copy of Board Resolution or Partners Consent
  • Address proof of Company/LLP/Partnership/Proprietorship
  • Details of all the employees if any.

Amendment in Shop & Establishment Registration

Any amendment to the Shop and Establishment Act registration must be intimated to the concerned officer within the prescribed time. In case of closure of the establishment, the employer is required to intimate the respective officer and apply for surrender of the registration. The officer on being satisfied about the correctness of the application, will issue an order cancelling the existing registration and issue fresh Registration Certificate.

Records to be Maintained under Shop & Establishment Registration

Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually further no Regular return is needs to be filed under this Act.

Author Bio

Qualification: CS
Company: N/A
Location: Jaipur, Rajasthan, IN
Member Since: 26 Sep 2017 | Total Posts: 25
CS Annu Sharma is a Commerce Graduate and an Associate Member of the Institute of Company Secretaries of India (ICSI). She has cumulative experience of more than 3 years with Listed Company, CA and CS firms. She authored various articles on the topics of Corporate Laws, Securities Laws, DGFT, I View Full Profile

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  1. Chandrasekaran says:

    Is it required to register—IT consultants,( two persons who are husband and wife ,Owners themselves) running a Consultancy firm under Shop & Estt Act?
    a) if they operate from their own house/flat
    b) if they operate at a shared office location?

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February 2021