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Shop and Establishment Registration

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  • Business Activity discussion
  • Registration under the Shop and establishment act.
  • GST & MSME Registration Certificate and other related registration
  • Annual Tax Returns
  • Accounting and Business Planning
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What is the Shop and Establishment Act Registration all about?

The Shop and Establishment Act Registration regulates the organized and unorganized sector in India and keeps a check on the working conditions at the place of work. It applies nationwide to Shop, commercial establishments, hotels, and eateries, restaurants, eating houses, theatres and other places of public amusement or entertainments houses. It governs and lists the rights of employees at the workplace and imposes certain obligations on every employer to comply towards its employees. The shop and establishment registration is a state act and the procedure may vary from state to state. The shop and establishment registration is to be obtained by making an application online on respective state official sites.

The objectives of the Shop and Establishment Act Registration

  • The main objectives of the Shop and Establishment Act registration are to secure uniform benefits for employees working in different establishments in an organized manner for the Shop, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment, for the reason being an unorganized sector in India.
  • The Shop and Establishment registration aims to regulate the day-to-day treatment of employees and set a standard for employment.

The rules and regulations of the Shop and Establishment Act Registration in India

The Shop and Establishment Act registration covers many important aspects of Shop and establishment such as given below:

  • It regulates the sets rules for how many hours can be worked on a stretcher day and week,
  • Issues the guidelines for spread-over, rest interval, opening and closing hours, closed days,
  • Declares the national and religious holidays,
  • Regulates the work, rules for employment of children, young persons, and women,
  • It also sets the rules for annual leave, maternity leave,
  • It also frames in the industry for the sickness and casual leave, rules for employment and termination of service.
  • It also issues the manner and method for the maintenance of registers and records and display of notices and obligations of employers as well as employees.
  • The terms of service and other work conditions of people employed in Shop and commercial establishments.

What are the services Enterslice offers to Shop and Establishment in India?

Our services

  • Registration under the Shop and establishment act.
  • Renewal of registration under the Shop and establishment act,
  • GST registration,
  • MSME registration,
  • Format and set of legal documents required by startups.
  • Updates on developments and changes introduced time to time by respective states.
  • Legal advisory, Compliance calendar applicable to your establishment and much more.

Fees for Shop and Establishment Registration

Package 1

Shop ad establishment registration

Rs. 5999 +Government Fees+ GST

Package 2

Shop ad establishment registration+ GST registration + MSME registration+ Assistance in opening of current account + Trademark registration in one class

Rs. 19999 + Government Fees+GST

The Documents Required for Shop and Establishment License?

In order to get the Shop and Establishment Act registration, one needs to provide the following documents:

  • Identity proof: The PAN card (The PAN shall pertain to the business owner or the business itself),
  • Address proof: A copy of the rental agreement or sale deed, and
  • Details of all the employees if any.

Are You Required to obtain the Shop and Establishment License?

  • Firstly check and understand, if your business, which you are going to establish, is covered under the category of the shop and commercial establishment defined under the Shop and Establishments Act.
  • If yes, then you are required to the adhere the norms and regulations set by the Act for treatment of their employees.
  • However, note that the exceptions to the Act may vary from state to state. Check the respective state list of the Shop and establishment as every state has given a list of Shop and establishments to be covered under the Act, such establishments are required to run their business by abiding the rules and regulations pursuant to the Shop and EstablishmentAct.
  • Thereafter you need to file for registration under the Act, within 30 days of commencement of your establishment.

Why one should obtain the Shop and Establishment License?

The main benefit of Shop and Establishment License is as follows:

  • It gives you a legal recognization.
  • It essentially forms as a basic license.
  • It is also proof of your business to apply for other registrations required to run a business in India.
  • This registration is mandatory for several reasons, including the opening of a current account in a bank.
  • Also in case, you need to raise an investment through bank loans or from venture capitals, in that case also require the license or registration to prove their validity.

How to apply for the Shop and Establishment Registration Online?

Step1: Download the application in the prescribed format from the official websites of different States.

Step2: Fill it along with the following details:

  • The name of the establishment
  • Name and details of the owner (employer) and the employees (at the time of incorporation of business)
  • The address of the establishment and a copy of sale deed or rental agreement for the shop
  • PAN card of the business or the owner

Step3: Submit the filled application form along with the prescribed fees to the inspector in charge or Chief Inspector of Shop and Establishment Act, or from other inspectors delegated to the area where you run the establishment.

Step4: The application form shall be scrutinized by the authority and if all goes well the registration certificate shall be granted by the Chief Inspector of Shop and Establishment Act, or from other inspectors delegated, as the case may be.

How much time does it take for the registration under the shop and establishment act of India?

The registration process along with the physical verification may take around 15 to 20 working days in major cities. However, the time duration may vary from and may take longer time, depending upon the state in which you have the establishment of the business.

What all things to keep in mind and to do after obtaining the Shop and Establishment Registration?

  • Be prepared for the inspector visit at the establishment, if required.
  • It is mandatory that the registration certificate so obtained under the shop and establishment act needs to be displayed in an easily accessible and visible place in the shop.
  • It must be renewed in the case where any changes have been made with regard to the number of employees’ addition or upon the expiry.
  • Also in cases where there is any change in the details or the closure of such an establishment, it must be informed to the inspector within 15 days of the said change or closure.
  • Every State has set different rules and regulations for registration under the shop and establishment Act; however, the basic procedure shall remain the same.
  • It is also mandatory under the Shop and establishment act that every business gets approval from the Department of Labour of that respective state.

What is the Inspection Procedure under the Shop and Establishment Act?

  • Locating and identifying¬† the Establishments
  • Joint Team Inspection
  • Inspection report
  • Non-Compliance Notice to be sent if any
  • Final Action to be taken

The Inspection Procedure followed by the inspector under the Shop and Establishment Act is as follows:

Step1: The inspector on receipt of the application shall locate the place of Establishments. The random computerized risk assessment method is used for locating the establishment.

Step2: Once the establishment place is located, it is inspected by the Joint Team. The inspecting team usually consists of minimum 2 inspectors and one of the following officers, Assistant Labor Commissioner, Labor Enforcement Officer, Assistant Director Factory as per their availability. However, it also depends on the state law to constitute the Inspection team.

Step3: An Inspection report is required to be submitted within 48 hours; also the inspection report is required to be uploaded/submitted by the inspecting team on the portal of the departmental along with a unique number.

Note that the unique number will be used by the users such as units/ establishments/factories to view and download the inspection report from their web portal account.

Step4: Non-Compliance Notice may be issued by the department to units/ establishments/factories to rectify defects/deviations / non-compliance observed as part of the inspection.

Note that the establishment must do the necessary compliance within 15 days and also inform the Labour Department about the same after uploading the compliance report.

Step5: Final Action for either acceptance of compliance report and issue of go-ahead note or otherwise initiation of proceedings is done by the inspection team.

Preparation required for visiting inspector’s Visit under the Shop and Establishment Act Registration:

Be prepared and ready with following details and documents:

  • The inspector may ask for establishment registration certificate under the Shop and Establishment Act.
  • He will check the registers and records required to be maintained.
  • He will also confirm whether the employees are getting weekly and public holidays or not.
  • Shall also check if all employees have been paid wages within the time specified under the act.
  • Whether or not the maternity benefits have been given to all eligible women employees
  • He will also look into the fact that no illegal deduction has been made.
  • Any wrong termination of an employee violating the prescribed procedure under the Act.
  • Whether children/women are employed against the provisions of the Act.

What is the Renewal process under the shop and establishment Act?

The renewal must be completed before the expiry of the license. You may hire a legal consultancy in this regard, who are well aware of the state laws. In case you wish to establish contact with us click here.

The general procedure for renewal in a state is as follows:

  • Go to individual state site for the Shop and establishment act and log in.
  • Enter the user Id and password, received or created at the time of registration under the Act.
  • Select the registering procedure as an individual or an organization.
  • Enter the details and fill in the application with your details and submit.
  • Select for renewal of your license.
  • Re-upload all your documents as given below:
  1. The PAN Card of Partners/Directors/Proprietor
  2. The copy of Rental agreement/Sale deed of commercial space
  3. The list of Number of employees
  4. The Name of establishment
  5. The Registers maintained until now
  6. The copy of Voter’s ID/Passport/Driver’s License
  7. The copy of the passport-sized photograph
  8. The copy of the passport-sized photograph
  • Make payment of Fees: The fees may vary from state to state.
  • Now keep a watch and keep checking the status until this status changes to ‘Completed’: After submission, the status will appear ‘Under Scrutiny’, keep a watch until it turns completed.
  • Download Certificate: You can ‘Download the Certificate’ from the site.

Note: - As Shop and establishment registration is governed by the state, the procedure may be a little different in every state.

What is required to be done for shop and establishment act registration?

  • Avail the certificate of registration under the shop and establishment act
  • Comply GST Registration rule for your business.
  • Subscribe Enterslice services for GST Returns Monthly / Quarterly.
  • Do not forget to avail MSME Registration benefits.
  • Plan out your business income with the help of the enterslice expert team.
  • You will also require the set of legal documents, letters formats, applicable to a new set up.

FAQ Shop and Establishment Act Registration

Under the Shop and Establishment Act, every business has maintained the following records:

a) The register regarding details of employment,
b) Any fines imposed with reason to do so,
c) Any deductions from salary
d) Advances issued, if any,
e) Salary details,
f) Holidays awarded.

Note that the requirements may vary from state to state.

The definition of a 'Commercial Establishment', as given in the Act is:

a) Any commercial sector, such as banking, trading or insurance establishments
b) Any establishment where individuals are employed or engaged to do office work or provide service
c) The hotels, eateries and boarding houses or a smaller café or refreshment house
d) Amusement and entertainment places such as theatres and cinema halls or amusement parks

Yes, under the Shop and Establishment Act, every business has to seek approval from the Department of Labor before commencing the business.

Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.

Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.

Shop and establishment registration in Bihar is governed by The Bihar Shop and Establishments Act, 1953. Following is the procedure:
Step1: Download the application in the prescribed format from the official websites of the Bihar.
Step 2: Following options will appear:

1. Application for Registration
2. Application for Amendment of Certificate of Registration
3. Notice of Closure
4. Application for Digitization of Existing Shop and Establishment under Bihar Shop and Establishment Act.

Step3: Go to the application for registration and fill it along with the following details:

1. The name of the establishment
2. Name and details of the owner (employer) and the employees (at the time of incorporation of business)
3. The address of the establishment and a copy of sale deed or rental agreement for the shop
4. PAN card of the business or the owner

Step4: Submit the filled application form along with the prescribed fees.

Step5: The application form shall be scrutinized by the authority and if all goes well the registration certificate shall be granted by the Chief Inspector of the Bihar Shop and Establishment Act.

You can contact Enterslice expert team, which have established a benchmark in the market for the fastest delivery and professional approach towards the work assigned to the team. You can reach out to us by posting a query and we shall contact you within a few hours.

You are benefited in the following manner if you hire Enterslice:

1. 100% in-house services
2. Expert eyes throughout the process
3. Free legal advice during the inquiry
4. Free regular updates via mail

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