Shops and Establishment Registration

Overview

The Shops and Establishment Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places come under the purview of the Act.

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

1. Any commercial sector, such as banking, trading or insurance establishments.

2. Any establishment where individuals are employed or engaged to do office work or provide service.

3. The hotels, eateries and boarding houses or a smaller café or refreshment house.

4. Amusement and entertainment places such as theatres and cinema halls or amusement parks.

All such above mentioned commercial establishments come under the Act, and need to adhere to the norms and regulations set by the Act for treatment of their employees.

The exceptions to the Act varies in the States and each State has given a list of shops and establishments that come into the Act, and who require the registrations under the Act to run their business in the State.

When do I need the registration?

  • If you are starting a commercial establishment or a shop, (as mentioned above), you need to file for registration under the Act, within 30 days of commencement of your establishment.
  • This registration is mandatory for several reasons, including the opening of current account in a bank. This license, forms as a basic license and a proof of your business to apply for other registrations required to run a business in India

Required Details

  • The name of the establishment
  • Complete address
  • Details of the member occuping the management positon or working in the establishment
  • Year of establishment
  • Details of all the empolyee
  • Copy of PAN card, Identity and Address Proof of owner (employer) and the employees

How to apply for registration?

While each State has set different rules and regulations for registration under the Act, the basic procedure remains the same. The Act requires every business to get approval from the department of Labour.

The registration certificate can be obtained from the Chief inspector of Shops and Establishment Act, or from other inspectors delegated to the area where you run the establishment.

Process

An application, in the prescribed format, (obtained from the official websites of different States) needs to be submitted to the inspector in charge, with:

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

FAQ's

1.Is Shops and Establishment Act applicable in Delhi?

This Act may be called the Delhi Shops and Establishments Act, 1954.The provisions of the Act will apply to the shops and establishments located in Delhi and not to any establishment working outside Delhi.

2.What is a certificate of establishment?

Shop Establishment Certificate -It is also called Shop License informally. The Shop Establishment registration is a state -based registration required while establishing a hotel, shop, or any commercial place. It is relevant for every new shop/establishment to get it registered under the Shops and Establishment Act.

3.Is shop and establishment compulsory?

This license is mandatory for all business entities, even if you are working from home. It covers - shops, commercial establishments, restaurant, hotel, theatre, public amusement, and retail trade/business. Every establishment needs to register itself within 30 days of commencement.