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Shop & Establishment (F)

Shop & Establishments

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 shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act. Shops are defined as premises where goods are sold either by retail or wholesale or where services are rendered to customers, and includes an office, a store-room, godown, warehouse or workhouse or work place. Establishments are defined as shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment. Further, establishments as defined by the Act may also include such other establishments as defined by the Government by notification in the Official Gazette. However, factories are not covered by the shops & establishments Act and are regulated by the Factories Act, 1948.

Shop & Establishment :

Legal Entity ProofShop registration provides a legal entity proof which gives you right for doing the business.

Business Bank Account– On the basis of shop act registration, you can easily open a business bank account.

Government Benefits- If you obtain the shop act registration, then you can easily avail the government benefits.

Lifetime Certification- Shop Act registration gives you the lifetime valid certificate, so it is not required the renewal cost and its just one time cost for the same.

  • Distance: As the departmental stores are generally located in the central places, people living at a distance cannot take advantage of the departmental stores.
  • High Cost of Operation: The cost of doing business is very high in case of departmental stores as they have to pay high rents, salaries to staff and spend much on various facilities provided to the customers.
  • Higher Prices: Due to high costs of operation and establishment, the prices of commodities in departmental stores are comparatively high. Thus, only the rich people can afford to take advantage of the departmental stores.
  • Difficult to Establish: The departmental stores require a large amount of initial capital investment and a number of specialised persons for their establishment.
  • Absence of Personal Contact: The owners of the departmental stores cannot make personal contact with the customers. The sales are made by the employees who may not care for the customers’ satisfaction.

Registration Process

As a business owner of a shop or establishment, you are compulsorily required to get the same registered under the Shops and Establishment Act. Here are the specific rules:

Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:

  1. Your name as the employer and the name of a manager, if any;
  2. The postal address of your establishment;
  3. The name of your establishment;
  4. Such other particulars as may be prescribed.

Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate will be valid for 5 years and has to be renewed thereafter.

It is important that the registration certificate has to be prominently displayed at your establishment

  • 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.
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All about Shop & Establishments

Shop & Establishments

One of the important regulation to which most businesses in India are subject to is the Shop and Establishment Act, enacted by every state in India. The Act is designed to regulate payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in shop and commercial establishments.

Establishments included in this Act are commercial establishments, residential hotels, restaurants, eating houses, theaters, or other places of public amusement or entertainment. Additionally, other establishments that the State Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act would then classify as establishments.

Shop means any premises:

    • Where goods are sold, either by retail, wholesale, or
    • Where services are rendered to customers.
    • It includes an office a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business.

Basic

INR 1,500/-

One Time Fee

  • GST Registration
  • Shop & Estb. Registration
  • Bank A/c.

Service Provide Within 7 Days

Standard

INR 11,999/-

One Time Fee

  • GST Registration
  • Shop & Establishment Registration
  • MSME Registration
  • Trade Mark Registration
  • Logo Design
  • Opening Bank A/c.

Service Provide Within 15 Days

Premium

INR 11,999/-

Yearly Fee

  • Yearly GST Compliances
  • Income Tax Return

Services Provided Before the Due Date

Frequently Asked Questions

Major steps involved in getting this certificate are as follows-

  1. Application for shop and labour certificate is needed to be submitted within 30 days of commencement of business.
  2. Application can be made offline as well online. For offline mode, you need to visit labor department of state or it can be done online by making an application on website of labor department of concerned state. For example to make application for shop and labot certificate in delhi.
  3. Submit the application to chief labor inspector of state online or offline. Relevant documents also needed to submit along with application for verification.

Following documents need to be submitted along with application –

  • Photograph of the shop/ establishment’s entrance with the Name Board in local language.
  • In case of a limited company or LLP, following documents need to be submitted for firm – Certificate of Incorporation, Memorandum of Association (MOA) and Articles of Association (AOA)/ LLP (Limited Liability Partnership) agreement.
  • Copy of the PAN card of the firm.
  • Proof of identity of owner like Voter ID, Aadhar card, Driving license. Document of partners and directors would be required in case of partnership firm and limited company/LLP.
  • Address proof shop/establishment like utility bills, sale deed, lease deed along with NOC of owner in case, premise is rented.
  • Copy of partners’ consent or Board resolution
  • List of partners/ directors along with their Identity and Address proof
  • Details of existing workers like duration, wage rate etc.

Application form for shop and establishment certificate would contain details like-

  • Name of the establishment
  • Address of establishment
  • Full name of the employer
  • Category of establishment
  • Nature of business
  • Name of the manager
  • Date of commencement
  • Employee details

You need to keep following points in mind –

  • The certificate should be displayed at a prominent place within shop.
  • It should be renewed well before expiration date.
  • Any change or updating should be notified to chief labor inspector
  • Any person who indulges in behavior prohibited by this act would be liable to punishment under law.

Following record should be maintained –

  • Working hours.
  • Rest period
  • Leave taken
  • Leave with wages
  • Fines
  • Salary