The Shop and Establishment Act in India is notified 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 Trade or retail or wholesale or where services are provided to customers and include an office, a store-room, godown, warehouse or workhouse, or workplace. Establishments are defined as a shop, a commercial establishment in which commercial activities are doing, residential hotel, restaurant, eating-house, theatre, or other places of public amusement or entertainment. Further, establishments as defined by the shop& establishment Act and 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 covered in the Factories Act, 1948.
Following are the benefit of the shops and establishment act.
Legal Entity Proof-Shop registration provides legal entity proof which gives you the right for doing the business.
Business Bank Account- On the basis of shop Act registration, you can effortlessly open a business bank account.
Government Benefits- If you obtain the shop act registration, then you can easily avail yourself of the government benefits.
Lifetime Certification- Shop Act registration also gives you the lifetime valid certificate, so it is not required for renewal, and renewal cost is nil, and it’s just a one-time cost for the same.
As an owner of a shop or establishment, you are must require to get the same registered under the Shops and Establishment Act. Here are the specific rules:
Submit an application in the prescribed form and prescribe fees to the Inspector within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and also should contain all the following information:
Upon receiving the application for registration and the fees, the Inspector shall confirm the accuracy and correctness of the application. Once suitably satisfied, he shall enter the all details in the Register of Establishments and issue a registration of the certificate of your establishment to you. The certificate will be valid for a period of 5 years and has to be renewed thereafter.
It is very important that the registration certificate has to be prominently exhibited at your establishment
following are the documents required
Shop & Establishments
One of the important regulations to which most businesses in India are subject is the Shop and Establishment Act, approve by every state in India. The Act is designed to regulate the payment of wages, working hours, leave, holidays, terms of service, and other work conditions of people employed in the shop and commercial establishments.
Establishments included in this Act are commercial establishments, residential hotels, restaurants, eating houses, theaters, or other places of a public amusement park or entertainment public place. In addition, 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:
One Time Fee
Service Provide Within 7 Days
One Time Fee
Service Provide Within 15 Days
Services Provided Before the Due Date
Major steps involved in getting this certificate are as follows-
Following documents need to be submitted along with the application –
Application form for shop and establishment certificate would contain details like-
You need to keep the following points in mind –
The following record should be maintained –