Registration
Shop Act Registration

Every small hotel and shop must obtain a shop and establishment license to conduct business activities. However, the specifics of this license can differ depending on state regulations. For instance, the process for obtaining a shops and establishments license in Rajasthan is distinct from that in Uttar Pradesh.

Thus, it is essential for applicants to familiarize themselves with both Central and state regulations concerning shops and establishments prior to submitting their application. Additionally, these regulations govern the working conditions for employees in both the organized and unorganized sectors, which the applicant must adhere to.

Furthermore, the terms of employment and working conditions are also governed by this license. Therefore, compliance with state requirements is crucial.

Definition of Shop and Establishment Registration

The registration under the Shop and Establishment Act is the official authorization to operate a business in India. This act is overseen by the Department of Labour. Every shop or establishment in India is required to register under this act within 30 days of its establishment. The license acquired through shop act registration acts as evidence of the business’s existence.

Registering under the Shop and Establishment Act is a crucial requirement for all businesses that function from a shop or establishment. Upon starting your business, you can obtain registration for your firm through various methods, such as:

  • It can be registered as a Business entity in India.
  • It can be registered as Start up in India.
  • It can register as MSME Enterprise.
  • It can be registered under shop and establishment act of the respective state in India.

Let us delve deeper into the reasons for registering under the Shop & Establishment Act, the eligibility criteria for Shop & Establishment Registration, the process of registration under the Shop & Establishment Act, the advantages of obtaining Shop & Establishment Registration, the necessary documents for Shop & Establishment Registration, amendments related to Shop & Establishment Registration, and the records that must be maintained under the Shop & Establishment Act.

Which organizations need to obtain Shop and Establishment Registration?

All commercial establishments listed below, including shops, must register themselves under the Shop and Establishment Act:

  • Commercial sector establishments like trading, insurance, or banks etc.
  • Establishments where people are employed to provide service call centre etc.
  • Refreshments house, small cafe, boarding houses, eateries, hotels, Restaurants etc.
  • Entertainment establishments like cinema halls, theatres, amusement parks, etc

When should you submit your application for Shop Act Registration?

When a business begins to hire individuals, whether on a contractual basis, as full-time employees, or as casual workers, it is mandatory for every shop and establishment to register under this Act within 30 days of starting operations. This registration is essential to ensure the enforcement of appropriate regulations regarding workers’ rights and working conditions.

How can you determine if you need to acquire a Shop and Establishment License?

The following steps outline how to determine if a person needs to acquire Shop and Establishment Registration:

  • The initial and most important step is to verify and comprehend whether the proposed business that an individual intends to set up falls within the scope of the terms "shop" and "commercial establishment" as defined by the Shop and Establishments Act.
  • If the situation is applicable, then the individual must comply with the standards and regulations set forth by the Act regarding the treatment of their employees.
  • It is important to note that the exceptions to the Act can differ from one state to another.
  • Please review the specific state list of the Shop and Establishment Act, as each state has compiled a list of Shops and Establishments that fall under the Act's provisions. Additionally, these establishments must operate their businesses in compliance with the rules and regulations set forth in the Shop and Establishment Act. Please review the specific state list of the Shop and Establishment Act, as each state has compiled a list of Shops and Establishments that fall under the Act's provisions. Additionally, these establishments must operate their businesses in compliance with the rules and regulations set forth in the Shop and Establishment Act.
  • Subsequently, the individual in question must submit an application for online registration in accordance with the specified Act, within 30 days from the date the establishment begins operations.

What must an Employer declare during the registration process?

  • Working hours of employees
  • Number of workers
  • Rest interval of employees
  • Opening and closing hours
  • Health and safety measures
  • Wages for overtime work
  • National and religious holidays etc

What documents are needed for Shop Act Registration?

  • Photo of the establishment along with Name Board and Director
  • List of directors and management with their ID & Address proof.
  • Details related to the company, employees, their salaries etc.
  • Establishment’s address proof
  • Affidavit
  • Copy of Pan card

What is the process for applying for Shop and Establishment registration?

You can register your shop and establishment online by going to the state government’s website. You must submit the application in the format specified on the website, including the aforementioned details and documents, along with the required fee. Once the Department of Labour receives your application, an inspector will come to your establishment to verify the information and will issue the registration certificate/license as per the Act.

What records should be kept in accordance with the shop and establishment act?

According to the Shop and Establishment Act, all businesses must obtain approval from the Department of Labour and maintain current records concerning employment details, fines, deductions, advances, salaries, and holidays. These requirements can differ from one state to another. Regular returns are not required to be filed under this Act; however, documents related to annual holidays and the number of employees must be submitted to the Municipal Corporation’s office on an annual basis.

Modification in the registration of the shop and establishment act:

Any modifications to the Shop and Establishment Act registration must be communicated to the relevant officer within the specified timeframe. In the event of business closure, the employer is obligated to notify the appropriate officer and submit a request for the surrender of the registration. Once the officer is satisfied with the accuracy of the application, an order will be issued to cancel the current registration.