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Shop and Establishment Registration

The Shop and Establishment Act in India was implemented to govern the rights and working conditions of workers that are employed in the unorganized sector. The act requires all commercial establishments like theatres, eateries, hotels, amusement parks, shops, retail/trade business etc. to apply for the license and registration within 30 days of commencing the business. The Act asks the employers to declare the following:

Working hours

Rest interval of employees

Opening and closing hours

Health and safety measures

Wages for overtime work

National and religious holidays

When do You Need a Shop and Establishment License?

When a business entity starts employing people as contract-based or full-time employees, casual workers, etc. then they need to register for the Shop and Establishment licence within 30 days of starting business to enforce proper regulations for workers’ rights and work conditions. 

The shop and establishment registration is required while establishing any commercial place and is a state-based registration for which rules vary according to the state. The commercial establishment as defined in the Act include:

Commercial sector establishments like trading, insurance, or banking organization

Establishments where people are employed to provide service or do office work

Refreshments house, small café, boarding houses, eateries, hotels, etc.

Entertainment and amusement establishments like cinema halls, theatres, amusement parks, etc.

How to Apply for Shop and Establishment Registration?

The Shop and Establishment Act requires every business to approach the Department of Labour for the approval, although the rules and regulations vary from state to state. You will need the following documents to apply for the license:

Applicant’s passport size photograph

Photo the establishment along with the owner/manager

List of directors and management employees, if applicable

Details related to the company, employees, salaries

Establishment’s address proof

Affidavit

You will also need to submit the following information:

Manager and employer’s name

Establishment’s postal address

Establishment’s name

Category of establishment

Number of employees

You can apply for shop and establishment registration online through the state government’s website. The application in the format prescribed on the website needs to be submitted with above mentioned details along with the prescribed fee. Once the application is received by the Department of Labour an inspector will visit your establishment to check the details and will provide the registration certificate/licence in accordance with the Act. 

Shop and Establishment Registration: Advantages

The owner of the establishment may benefit from the registration in the following ways:

The licence will help the owner in getting a current account with the bank

The owner will be at ease in case of unexpected visits by the inspector from the State

The registration can be renewed easily online with minimal fee without hustle

Online shop registration is easy and quick process

The owner of such establishments can also contact companies like Vakil Search that offer legal counsel through legal experts and advocates and can help them get the registration within no time and without much effort.