Renewal of Shop and Establishment License: Process Overview

The Shop & Establishment Registration is governed under the state laws and rules, and the procedure of granting Licenses and renewals may vary from state to state. The renewal procedure must be initiated and completed before the expiry of the original License. If any changes are made after the Shops and Establishment License issuance, then that same License must be renewed accordingly.

Here, we will be discussing the steps to renewal of Shop and Establishment License in the Union Territory of NCT of Delhi. This will undoubtedly give an applicant a basic idea about the renewal process followed in other States/UTs in India.

Documents Required For Renewal of Shop and Establishment License

• Original Copy of Shop and Establishment License
• Copy of Voter’s ID/Passport/Driver’s License
• Passport-sized photograph
• Rental agreement/Sale deed of commercial space
• PAN card details of the concerned employer
• Number of current employees
• Name and Address of a shop or an establishment
• Copy of an Electricity Bill
• Registers maintained to till date for License Renewal.

Procedure Required for Renewal of Shop and Establishment License

Visit Website of Labour Department

The renewal process for the shops and establishments are online in many states, and some state works partly online and partly physically. Every state has a Labour Department^[1] Website, and an online License renewal form is available with instructions.

Filling a Renewal Form

Firstly, an applicant needs to download the License renewal form from the official website of the labour department of the respective state in which the said shop or establishment is located and operating. There are states where application forms are completed and filed only in online format.

Completion of License Renewal Form

In this step, an owner of a shop or an establishment shall complete the form providing all the necessary details per the rules for shops and establishments’ License renewal.

Upload Documents

Subsequently, uploadthe filled application form for renewal and the required documents online. In some states, documents and a physical copy of the application form must be submitted at the office of Labour department.

Fee

The Fee varies as per business type and renewal of Shop and Establishment Licenserules of the particular state. Payment options are available online in many states otherwise can be payable offline by Demand Draft/Cash.

Inspection of Shop or Establishment

Subsequently, the Labour Department examines your renewal application for shops and establishments. In order to verify the particulars of the information provided and documents attached, a Labour Inspector may conduct an inspection and verification of documents of your business premises.

Approval & Issue of Renewed License

After Examination and verification of your License renewal application and/or Inspection of business premises. Authority may approve your application and grant a License with validity.

Status of Renewal Application

When you make the payment, your application status will change to ‘Under Scrutiny’. It usually takes up to one week to complete the whole process.

Download the Certificate/Renewed License

The applicant may download the Certificate/Renewed License for Shop or Establishment, or an owner can directly go to the office of the Labour Department of the State to collect the physical copy of the Renewed License.

Benefits of Shops and Establishment License

A variety of Benefits for owners, workers/ employees, and customers can be availed just by obtaining a single License.   

• The Shops and Establishment license provides legal recognition to the shops or establishments and helpss define the category of business they fall in.
• The License act as proof of Business to the owners and the same can be displayed on the premises.
• After granting of License, an entrepreneur can raise investments through loans or venture capital for the proposed shop or establishment.
• The Shops and EstablishmentLicense ensures proper working conditions and protects wages of the workers, etc.

Conclusion

The License renewal process for shop and establishment is same as applying for a fresh License. In India, this Shops and Establishment license is required for carrying out business activities in a regulated commercial space. It is necessary to display the License on the premises while carrying out day-to-day business. A Renewal of shop and establishment license must be completed before the date of expiry of the Shop and Establishment License.

Read our Article: Uttar Pradesh Shop and Commercial Establishment Act, 1962