Shops and Establishment Registration Procedure in Mumbai

15 Jul, 2019

Getting shops & establishment registration in Mumbai is one of the compulsory requirement for the start-up operating in Mumbai. In this article, we will discuss the Shops and Establishment Registration procedure in Mumbai.

What Shops and Establishment Registration Procedure?

One of the most important regulations to which most businesses in India are required to comply is the Shop and Establishment Act, which is enacted state wise. This Act is enacted to regulate the wage payment, working hours, leave, holidays and other working situations of people employed in the unorganized sector.
The Shop and Establishment Act is regulated by the Department of Labor.
The Shop and Establishment Act is applicable to the place where the business or profession is being carried out.
The Act not only regulates the working of the commercial establishments but also includes the following:

Societies registered under any other act.
Charitable Trusts
Educational Institutions
Any other establishment or premises in which any services of banking, insurance, etc. are carried on.

Definition of Premises under Shop and Establishment Act:

The Shop and Establishment Act in India are enacted state wise. However as per the Act, Shop is defined as the place where goods are sold either in the form of retail or wholesale or where services are provided to a customer, also it includes office, a storeroom, a godown, warehouse.
Establishments under The Shop and Establishment Act means a shop or a commercial establishment, residential hotel, restaurant, theater or other places of amusement for public or entertainment.
There is a specific exclusion of factories under the Shop and Establishment Act as they are regulated by the Factories Act, 1948.

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Aspects covered under the Shop and Establishment Act:

Working Hours
Breaks for rest and food
Prohibition to employ child labor
Employment of men and women
Working Hours
Weekly off
Paid Leaves
Public Holidays
Time and conditions for wage payment or calculation
Leave policy
Sanitation and cleanliness
Accidental remedies
Firefighting remedies
Record Keeping

Procedure for applying for the Shop and Establishment Act License:

Any Shop or establishment that commences its operations is required to apply to the Chief Inspector for Shop and Establishment Act License within the prescribed time.

The application for the same shall contain the details such as the name of the employer, name, and address of the employer, category of establishment, number of employees and other relevant details as required.