Shop and Establishment Registration: Process & Fee (2021)

Shop and Establishment Registration

Introduction

We all want to do hassle-free work. The work that gives us money, recognition, and goodwill but when you think of starting your own business the first problem you face is how would you be able to convince people to work with you. People would want to work with a stable organization, which must have legal entity recognition too. So, to create your business’s credibility, one must register a business under the Shop and Establishment Act and should do all important compliances which help in recognizing your organization as a legal entity.

So here we will discuss the importance of Shop and Establishment registration along with its procedure to get one.

Applicability of SHOP & ESTABLISHMENT ACT:

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

DEFINITION:

The definition of a ‘Commercial Establishment’, as given in the Act is: Any commercial sector, such as banking, trading, or insurance establishments

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

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

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

3. Journalistic or related printing businesses

4. Contractors & auditors

5. Quarries and mines not included in the Mines Act 1952

6. Private educational institutions

7. Businesses such as banking, insurance, stocks exchange, etc

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

BENEFITS:

1. A shop or establishment registration certificate acts as a legal entity proof. It gives businesses the right to conduct work in a particular state.

2. The certificate acts as proof to open a current business bank account.

3. You can quickly round out state government inspections — on licenses and proper working of the business — if you have the certificate.

4. The Shop and Commercial Establishment Registration opens the doorway to government benefits — for small businesses — set up by the Department of Industries and Commerce.

TIME LIMIT FOR REGISTRATION:

Establishments need to register under the Act within 30 days of the commencement of work.

FEE FOR REGISTRATION:

There is no fixed rate of the registration fee. The fee depends on the number of workers in the business or establishment. Every employer must submit an accurate number of workers while filling up the registration form. The registration fee will be decided by the inspector in charge i.e., the labour officer.

DOCUMENT REQUIRED FOR REGISTRATION:

Following details and documents are required to register under Shop and Establishment Act:

1. Name of both Employer and Manager.

2. Postal Address of the said Establishment.

3. Name of the Establishment.

4. Category of Establishment such as the restaurant, amusement park, hotel, etc.

5. The number of employees working.

6. Employer’s identity proof in the form Aadhar Card, PAN Card, Driving License, Voter ID.

7. Employer’s passport-sized photograph.

8. Photo of the Establishment or Shop.

9. Copy of Rent Agreement or Lease Deed in case of the rented property.

10. Any Utility Bill in the form of Electricity Bill, Water Tax Receipt of the working premises. However, the said utility bill should not be two months older.

OTHER DOCUMENTS REQUIRED AS PER THE CONCERNED BUSINESS OR ESTABLISHMENT OR BUSINESS ARE AS FOLLOWS:

1. In the case of the trust, a list of the number of Trustees.

2. Memorandum of Association (MOA).

3. In the case of a Co-operative Society, a list of a number of members and chairman.

4. In the case of a Co-operative Society, a list of the number of Members and Chairman.

5. In the case of a Partnership, the Partnership deals with all the vital information regarding the firm’s name and signature of all the partners along with the share percentage of each partner.

6. A copy of the permission granted by RBI.

7. Copy of the Certificate of Incorporation (COI) issued under the Companies Act, 2013.

8. A copy of the COR (Certificate of Registration) granted by the Charity Commissioner.

9. A Resolution showing the list of Designated Directors.

10. A Resolution concerning the commencement of society’s business.

11. RTO Transportation Permit.

12. FSSAI license.

13. Drug license.

14. A copy of the permission granted by the collector.

15. NOC (No-Objection Certificate) issued by the Police Department for the opening of a Cybercafe.

16. IEC (Import Export Code) certificate.

17. NOC (No-Objection Certificate) issued by the Municipal Corporation for the opening of a Flour and Masala Mill.

18. Excise License required for the opening of a beer bar, restaurant, or wine shop.

19. A Certificate issued by the SEBI (Securities Exchange Board of India) to the Share Broker.

20. License issued by the Police Department for the opening of Security Services.

PROCESS OF REGISTRATION UNDER SHOP AND ESTABLISHMENT ACT:

Following are the steps to obtain a shop and establishment license:

1. Registration process for shop and establishment is Online. Visit the Labour Department Website of the concerned state.

2. Download the Application Form or the registration from the official website of the concerned state.

3. Fill in all the required details such as the proposed name of the Shop and establishment, name of the employer, name, and detail of the employees, address proof of the registered establishment together with no objection certificate or the rent agreement, Pan of the employer.

4. Upload all the required documents after filling up the form.

5. Pay a fee. The fee varies as per business type and license type.

6. After making payment, the labour department examines your application.

7. Authority approves your application and grants a license with validity (valid for 1 year with renewal every year) once the examination is done.

TIME PERIOD OF OBTAINING A LICENSE:

The process of obtaining registration might take around 15 to 20 working days in the major city areas. However, the same may vary from one state to another.

SOME IMPORTANT POINTS THAT SHOULD BE KEPT IN MIND WHILE REGISTERING UNDER SHOP AND ESTABLISHMENT ACT:

1. The Inspector appointed can visit the registered premises for verification.

2. The Owner of the business must display the certificate of the Shop and Establishment Registration at a place easily accessible in the particular premises.

3. The License issued must be timely renewed prior to its expiry date.

4. If in case the owner wants to close his establishment, then he needs to notify the inspector in writing about the closure within 15 days of the closing.

Conclusion

So, to make your business legal and credible, it is important to take a license under the Shop and Establishment Act. Through this registration, you will stay compliant and will easily run your business.

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