The Shop and Establishment Act is applicable on all commercial establishments irrespective of the size or turnover; viz, business centers, offices, warehouses, stores, hotels, amusement parks, restaurants, hospitals, etc. It’s a kind of trade license issued by State or Union Territory Authority and mandatory for every shop and establishment subject to rules of respective state and union territory.
The main objective of Shop and Establishment act is to protect the rights of employees, providing them uniform benefits, to regulate the payment of wages, term of service, holidays, leaves, work conditions, hours of work, overtime work and payment rules, maternity leave and benefits, rules for employment of children.
The Shop and Establishment is governed by The Labour Department and it’s a location base registration. Location base registration means that if any organization having more than one location for their shop or establishment, they need to obtain registration for every premise. Non-registration attracts the penalty which is levied by rules of respective state or union territory.
Shop Means: Any such premises where goods are sold, either by retail, wholesale, or service are rendered to anyone including an office, store room, godown, warehouse or workplace, etc.
Establishment Means: A premises where any trade, business, profession or any work is undertaken which may include society, charitable or another trust, journalistic and printing establishments, contractors and auditors establishments, educational institutes, premises where the business of banking, insurance, stock, and share, restaurants and eating houses, residential hotels, clubs, theatres and any other place for amusement or entertainment.
Alonika.in has a team of Labour law expert lawyers and consultants providing you the best assistance with regards to Shop and Establishment Act registration and related matters. Contact us and get your Shop and Establishment registration in 7-10 days.
Documents required for Shop and Establishment Registration
- Passport Size Photograph of Employer
- Photo of shop along with owner
- List of Management Employees
- Rates of Wages
- Details of Employees working in Establishment
- Employee Weekly Holidays
- Address proof of Establishment [Copy of shop’s rent agreement (if on rent) or Shop’s ownership document proof (if owner of shop)]
- Affidavit (Declaration Form)
- Photo ID (PAN Card/Driving License/Aadhar Card/Passport)
- Incorporation certificate / Partnership Deed / MOA & AOA of Companies
Advantages of Shop and Establishment Registration
- Legal Entity Proof: Each Shop and Establishment requires a legal entity proof like proprietorship or company etc. a legal entity proof which gives the right for doing the business in your region or state for the same.
- Business Bank Account: As per the RBI and banking norms, every organization needs to have a separate business account. Every bank ask for a legal entity proof for current account opening of a firm. If the firm is not in the ambit of GST or other registration, Shop and Establishment registration certificate plays an important role in current account opening.
- Smooth inspection: State / Union Territory authorities conduct regular inspection visits for checking the proper working of shops and establishments along with license as well. If you have the Shop and Establishment registration, the inspection process is smooth, non-registration attracts the penalty.
- Government benefits: Each state have department which creates the policy in the respective state for all the business. On the basis of Shop and Establishment registration you can avail the government benefits.
Applicability of Shop & Establishment Registration
- All commercial establishments (Shops, Godown, Warehouse, Malls, Amusement parks, Super Markets, Theatres, Hotels, Restaurants, Corporate Offices, Hospitals, Private Clinics, Laboratories, Offices of Professionals, Dairy booths, Saloons, Parlors etc.)
- Any commercial sector such as banking, trading or insurance establishment
- Any establishment where individuals are employed or engaged to do office work or providing services
- Any place providing accommodation and food (Hotels, Clubs, Resorts, Restaurants, Eateries and boarding houses, Cafeterias, Motels, Canteens, Tiffin centers etc.)
Exemption from registration under Shop and Establishment Act in the state of Rajasthan, as these exemptions are under the state provisions and may vary state to state.
- Offices of Reserve Bank of India
- Offices of Central / State Government or Local Authorities
- Establishment for the treatment or the care of the infirm, or the mentally unfit
- Fairs or markets for sale of work for charitable or other purposes from which no private profit is derived
- Libraries at which any activities are not carried for the purpose of any gain
- Persons whose work is inherently intermittent such as travelers or caretakers
Process for Shop and Establishment Registration
- Fill the query form
- Provide the required documents and details
- Make the payments
- We will process the application
- Once the registration certificate is granted by the Labour Law Authorities, the same will be provided to you
Currently this service is available in Rajasthan only. It’s one time registration