Several state governments have enacted the Shops and Establishments Act, which regulates the conditions of workers/employees. Any shop, office, establishment, theatre, hotel restaurant, etc., must obtain a Shops and Establishments license. This act regulates the working conditions, employment rights, working hours, holiday schedule, the minimum age for employment, and employer obligations.
Application for registration of shops and establishments should be made by:
Shops and Establishments registration is required for all entities involved in any business. It is required within 30 days of starting the business. It covers shops, commercial establishments, restaurants, hotels, theaters, amusement parks, and retail trade/businesses. An establishment’s/shop’s certificate should be displayed at its entrance.
Shop & establishment registration documents
- Photograph of the shop or establishment at the entrance with a local language name board
- Certificate of Incorporation, Memorandum of Association, and Articles of Association of the Company or LLC
- A copy of the PAN card
- Identification and address proof of all Directors and Partners
- A copy of the Board Resolution or consent from the partners
- A copy of the address proof of the company/LLP/partnership/proprietorship
- List of all employees, if any.
- Address of office
- Commencement date of the business
- IFSC code and bank account details
- Activities in business
- Employed people
- Equipment and plant investments
- Investment in Plant and Machinery or equipment
- Number of mobile phones (linked with adhar card)
- For OTP verification, please provide your email address
Shop & Establishment Registration Features & Benefits
A legal entity proof is required:
For each business or shop, a legal entity proof is required, such as a proprietorship or partnership agreement, which authorizes the business to be operated in your area or state.
Bank account for the business:
The RBI requires that each shop and establishment online open a separate bank account for their daily transactions. Each bank requires legal entity proof to open a current account. It is, therefore, possible to open a current business account on the basis of your shop certificate.
Inspecting smoothly:
Whenever the state government or local municipality visits your establishment, they check for the proper working of the business as well as the license. If you have a Shop Act license, then you can get around the inspections quickly and easily.
The government offers the following benefits:
There is a Department of Industrial Development in each state that develops policies for small businesses and on the basis of the Shop License Registration Certificate, you can apply for government programs.
What are the requirements for obtaining an Indian shop and establishment license?
- Centers of Service
- Wholesalers or retailers
- Owners of storage rooms, warehouses, and godowns
- Eating establishments, hotels, and restaurants
- Furthermore, any other places where you work
- Theme parks, entertainment centers, and theaters, among other things.
FAQs On Shops & Establishments License Registration
In what way does the Shops & Establishments Act serve its purpose?
With regard to the working conditions of Indian citizens, certain rules and regulations have been enacted in every state. The purpose is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments, and residential hotels to restaurants, theatres, and other public amusement or entertainment venues.
When does a Shops and Establishments act license become required?
Within 30 days of opening a shop or establishment, this Act compulsorily requires its registration. The license for shop is such a basic one that it is required for many other licenses as proof of a commercial business. For instance, most banks require you to provide it when you open a current account.
Is the business closed when it closes?
The inspector must be informed of the closing of establishments. If you plan to close an establishment, you must notify the inspector within 15 days of the closure and return the registration certificate. After completing a thorough inspection of your establishment, the Inspector will remove your name from the Register of Establishments and eventually cancel your registration.
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