If you start a company, you must register it with the State Government’s Labor Department under the Shop & Establishment Act. Those registrations are now available online. To do so, go to a state-related website and fill out a general Shop Registration form with all necessary details and documents attached.

What is the Shop and Establishment Act?

A shop or business establishment located within the municipal district is subject to specific regulations under this Act. Furthermore, the Shop and Establishment Act regulates the existing state’s Labour Department, and registration applications are often sent to “local district labour officers.”

Any premises where a business or service is carried on or where services are provided to customers, including offices, stores, godowns, or warehouses, whether at the same location or elsewhere, used in connection with such company or trade, is referred to as a “shop.”

A store, commercial establishment, residential hotel, restaurant, cafe, eating house, theatre, or other public recreation or entertainment facility is referred to as a “commercial establishment” in this Act.

Who needs to register under the Shop and Establishment Act?

Within 30 days of the start of their new company, each employer must send a registration application for his or her shop or any commercial establishment. Furthermore, this act is one of the legal requirements for all companies that operate out of any establishment or store.

This act regulates all stores, hotels, food establishments, local restaurants, city theatres, public entertainment venues, and other commercial establishments, among others, and thus requires a Shop and Establishment registration in compliance with the statute.

Who is required to obtain registration under the Shop and Establishment Act?

  • Retail and wholesale shops; 
  • Premises where services are rendered to customers including office; 
  • Storeroom, godown or warehouse;
  • Workhouse or workplace, used for trade or business;
  • Commercial establishment; 
  • Residential hotel; 
  • Restaurant or eating house; 
  • Theatre or place of public entertainment or amusement. 

Documents Required for Shop Act Licence

The following documents are needed for registration under the Shop and Establishment Act:

  • Employer’s AADHAR Card, PAN Card, Driving License, Voter ID.
  • Employer’s passport-sized photograph.
  • Photo of the Establishment or Shop.
  • Copy of Rent Agreement or Lease Deed in case of rented property.
  • Utility Bill such as Electricity Bill, Water Tax Receipt of the working premises. It should not be more than 2 months old.

Other documents needed as per the concerned business or establishment or business are as following:

  • In the case of a Trust, a list of number of Trustees.
  • Memorandum of Association (MOA).
  • In case of a Co-operative Society, a list of number of Members and Chairman.
  • In case of a Partnership, Partnership deed with all the vital information regarding the firm’s name, name, and signature of all the partners along with the share percentage of each partner.
  • A copy of the permission granted by RBI.
  • copy of the Certificate of Incorporation (COI) issued under the Companies Act, 2013.
  • A copy of the COR (Certificate of Registration) granted by the Charity Commissioner.
  • A Resolution showing the list of Designated Directors.
  • A Resolution concerning the commencement of the society’s business.
  • RTO Transportation Permit.
  • FSSAI license.
  • Drug license.
  • A copy of the permission granted by the collector.
  • NOC (No-Objection Certificate) issued by the Police Department for the opening of a Cybercafe.
  • IEC (Import Export Code) certificate.
  • NOC (No-Objection Certificate) issued by the Municipal Corporation for the opening of a Flour and Masala Mill.
  • Excise License required for the opening of a beer bar, restaurant or a wine shop.
  • A Certificate issued by the SEBI (Securities Exchange Board of India) to the Share Broker.
  • License issued by the Police Department for the opening of Security Services.

Shop and Establishment License Process

  • Visit Labour Department Website

Many states have online registration, while others have semi-online registration. Every state’s labour department has a website with an online registration form and instructions.

  • Download the Application Form

To begin, go to the official website of the state in which the shop or establishment is located and download the registration application form.

  • Fill in all the Required Details

The next step is for the business owner to fill out all of the required information. The following are some of the specifics:

  • Name of the Proposed Shop and Establishment
  • The Name and Details of the concerned employer
  • Names and contact information for all employees employed at the time, as well as evidence of the Registered Establishment’s address, as well as the NOC (No-Objection Certificate) or the Rent Agreement
  • PAN card details of the concerned employer.
  • Upload Documents

After that, after filling out the form, upload the appropriate documents online. Documents, as well as a printout of the application form, must be physically submitted in some jurisdictions.

  • Pay Fee

The fee varies depending on the type of company and the type of licence. Many states have an online payment option, but DD/cash payments may also be made offline.

  • Inspection

Your application is then reviewed by the Labour Department. An Inspector may be assigned to inspect your business premises in order to check the information you provided and the documentation you attached.

  • Approval & Issue of License

Following a review of your application and/or a visit to your business location. Your application is approved, and you are given a valid licence (valid for 1 year with renewal every year)

Key Points Considered while Obtaining a Shop and Establishment License

  • The appointed Inspector has the authority to visit the registered premises for verification.
  • Additionally, the owner of the company must show the Shop and Establishment Registration certificate in a prominent location within the business.
  • Before the licence expires, it must be renewed in a timely manner.
  • If the owner wishes to close his business, he must inform the inspector in writing within 15 days of the closure.
  • Regardless of the Shop and Establishment License, the owner of the proposed company must first seek approval from the state Department of Labor before beginning business operations in that state.

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