♦ Shops and Establishments Registration under Shops and Establishments Act
The Shops and Establishments Act comes under the authority of the Department of labour and it supervises and administers any establishments wherein any trade, business or profession is carried out. The act keeps a close eye on commercial establishments and also the working of the societies, printing firms, educational institutions and other premises which undertake banking, insurance, and stock or share brokerage. The Act also offers the obligations of the employer; it is first requirement to obtain a Shop and establishment license from the concerned authority under the act.
In India the Shop and Establishment Act may slightly differ from state to state as each state follows their separate operation.
♦ What are the Premises regulated by the Shop and Establishment Act?
The shop and Establishment Act in India is promulgated by the state and may slightly differ from state to state. However, as per the act, all the shops and Commercial establishments operating within each state are covered by the respective Shop and Establishment Act.
Shops are defined as premises where goods are sold either by retail or wholesale or where a service are rendered to customers and includes an office, a store-room, godown, warehouse or workhouse or workplace. Establishments are defined as shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment. However Factories are not covered by the shop and establishments act and are regulated by the Factories Act, 1948
♦ What are the various aspects regulated by the Shop and Establishment Act?
Here are few areas regulated by the shop and establishment act:
♦ When a Shops and Establishment Act is is required?
Every Shop and Establishment needs to register itself compulsory under this Act within 30 days of commencement of work. It is basic license, many other licenses require this as proof of a commercial business, and most of the banks will require one to furnish this license to open a current account.
♦ What Information is required to be furnished for Shop and Establishment License Registration?
♦ What Documents are required to be furnished for Shop and Establishment License Registration?
As In India the Shop and Establishment Act may slightly differ from state to state as each state follows their separate operation
♦ Process for Obtaining License in Delhi:
For Delhi the complete process of registration can be completed online. This service of registration is availed by submitting an e-form available on labour department website at www.labour.delhigovt.nic.in
As specified under Rule 3 of Delhi Shops and Establishments Rules, 1954, Form A needs to be filled to get the Registration Certificate for any establishment. The form require certain details like name and category of establishment , complete address , details of the shop/establishment and the shop owner, details of employee and nature of business.
After the submission of the Application The Chief Inspector verifies the application and if approved , issues a registration certificate to the applicant, after that the shop or commercial establishment will be registered.
This registration certificate is to be displayed at the shop or commercial establishment and is to be renewed regularly and systematically by the Business owner.
♦ Note: After obtaining the Registration
♦ Records to be maintained under the Shops and Establishment Act:
Records to be maintained under the Shops and Establishment Act related to employment records, fines, deductions, advances, salary and holidays etc. these requirements may vary from state to state.
♦ In case of cancelling the license registration
Procedure to cancel Shops and Establishment License
♦ What are the Advantages of Shop and Establishment License?
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.
Author- CS Aakansha Negi and can be contacted at [email protected]