Shops and Establishments Act
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The Shop and Establishment Act is regulated by the Labour Department of the respective states. The Act regulates all the shops and commercial establishments operating within the state. The respective states issue the registrations under the Act, and thus it slightly differs from one state to another state.
Who is liable to get GST Registration
Overview
Importance of Registration
Registration Condition
Registration Procedure
Documents Required
Shops and Establishments Act
The Shop and Establishment Act is regulated by the Labour Department of the respective states. The Act regulates all the shops and commercial establishments operating within the state. The respective states issue the registrations under the Act, and thus it slightly differs from one state to another state.
The Act is enacted for the purpose of protecting the rights of employees.
The Act provides regulations of the payment of wages, terms of services, work hours, rest intervals, overtime work, opening and closing hours, closed days, holidays, leaves, maternity leave and benefits, work conditions, rules for employment of children, record maintenance, etc.
Applicability
The Shops and Establishments Act applies to most businesses, excluding some concerns like factories, mines, etc.The act covers:
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Retail establishments like stores, malls, warehouses, etc.
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Eateries, hotels, movie multiplexes, amusement parks,
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Amusement and entertainment
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Service organizations like finance, healthcare, pharma, hospitality, etc.
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IT companies
Features of the Shops and Establishments Licence:
The Shops and Establishments Act applies to most businesses, excluding some concerns like factories, mines, etc.The act covers:
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All shops and commercial Establishments
The Act is PAN India on shops and commercial establishments, restaurants and eateries, hotels, malls, plazas, theatres and other entertainment centers.
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Small Office or Home Office Businesses
Even if you are operating from your home, your physical office or shop is considered your establishment, thus you need to apply for a license under the act.
Overview
Importance of Registration
Registration Condition
Registration Procedure
Documents Required
Benefits of Registration
The establishment -
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will have a legal identity to conduct business within the territory.
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can avail benefits under various Government schemes.
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can operate business bank accounts.
Overview
Importance of Registration
Registration Condition
Registration Procedure
Documents Required
Registration Conditions
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Each owner, within 30 days from starting the business shall submit an application form in Form ‘A’ to register the establishment.
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Registration certificate must be displayed in a visible place inside the office premises.
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Registration certificate is valid for a period of five (5) years. Before the expiry of the said period, a renewal application is to be submitted for the next period.
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It shall be the duty of an employer to notify the registration authority, in the prescribed form, of any changes with respect to any information contained in his statement during registration/renewal, within 15 days after the change.
Eg. Change in address, change in ownership, change in number of employees, etc.
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In case of closure of the business of the establishment, the owner should surrender the registration certificate to the registration authority.
Overview
Importance of Registration
Registration Condition
Registration Procedure
Documents Required
Registration Procedure
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Information Collection
Brief us on the required information and provide us with the necessary documents and the registration process will be undertaken right away.
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Prepare an online Application for submission
The process involves online preparation and application of forms with the State Labour Department. The entire process will be undertaken by the professionals so you can be free of unnecessary hassles and worries.
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Registration Approval
After a successful registration the concerned approval will find you within a 5-7 days gap.
Overview
Importance of Registration
Registration Condition
Registration Procedure
Documents Required
Documents Required
General documents
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Pan card copy of all directors /partners/proprietor
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Company pan card copy of pvt ltd / llp / partnership firm
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Rental agreement and electricity bill
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Address proof copy of all directors/partners/proprietor
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Photo copy of directors/partners/proprietor/
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Employees details
Additional Documents Required
For Private Limited Company
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MoA and AoA
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Certificate of incorporation
For LLP
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LLP agreement
For Partnership
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Partnership registration certificate
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Partnership deed
For Proprietor / Individual
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Trade Name
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Nature of Business
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Commencement of Business
FAQ
What is the Shops and Establishments Registration?
Shops and Establishments Registration is a legal requirement for all businesses, shops, commercial establishments, and other similar establishments in India. It is necessary to register with the local municipal or labor authorities under the relevant state Shops and Establishments Act to operate legally.
Which businesses need to register under the Shops and Establishments Act?
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All shops, commercial establishments, offices, hotels, restaurants, theaters, and other establishments involved in business activities.
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Companies, partnerships, and individual proprietors running these establishments.
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E-commerce businesses and home-based businesses may also be required to register depending on state laws.
Why is Shops and Establishments Registration Important?
Registration ensures compliance with labor laws, protects employees' rights, and allows the establishment to function legally. It also helps avoid penalties and legal issues related to working conditions, wages, and employee welfare.
What is the process for Shops and Establishments Registration?
The process generally involves:
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Application Submission: Submit a registration application to the local municipal or labor office along with required documents.
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Provide Details: Information such as the business name, type of business, office address, working hours, and the number of employees is required.
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Verification: The local authority may verify the application and may inspect the establishment.
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Certificate Issuance: Upon approval, the business will be issued a registration certificate.
What documents are required for registration?
The common documents required include:
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Application form (available at local labor office or online).
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Proof of address of the establishment (e.g., lease agreement, utility bills).
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Identity proof of the business owner or authorized person (e.g., Aadhaar card, PAN card).
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Details of the business (name, type of establishment, number of employees).
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Partnership deed, certificate of incorporation (if applicable).
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Photos of the premises (if required).
Is the registration process the same across all states?
No, the Shops and Establishments Act is state-specific, and each state in India has its own set of rules and regulations for registration. The procedure may vary slightly from state to state, including required forms and fees.
What are the fees for Shops and Establishments Registration?
The registration fees vary depending on the state and the size of the business. The fees can range from a nominal amount to a higher fee based on the number of employees or the business type. It is advisable to check with the local authorities for the exact fees applicable in your state.
How long does it take to get the Shops and Establishments Registration?
The registration process can take anywhere from a few days to a couple of weeks, depending on the efficiency of the local municipal or labor office and the completeness of the documents submitted.
Can I apply for registration online?
Many states in India now provide an online platform for Shops and Establishments Registration. You can visit the relevant state government website to submit the application electronically, upload necessary documents, and track the status of your application.
What happens if I don’t register my establishment?
Failure to register under the Shops and Establishments Act can lead to penalties, fines, or even closure of the establishment. The business may be deemed illegal, and the owner could face legal consequences for non-compliance with labor laws.
How can I update my registration details?
If there are changes in your business (e.g., change of address, addition of employees), you must update your registration details with the local authorities. Some states allow online updates, while others may require submission of an application and supporting documents in person.
Is Shops and Establishments Registration required for home-based businesses?
Yes, home-based businesses that qualify as shops or commercial establishments under the state’s Shops and Establishments Act must register. E-commerce and service-based home businesses may also need to comply with the registration requirements.
How can I check if my establishment is registered?
You can verify your establishment’s registration status by visiting the local municipal or labor office or checking the online portal of the respective state’s labor department.
Is there any renewal process for Shops and Establishments Registration?
Yes, most states require establishments to renew their registration periodically (e.g., annually or every five years). The renewal process usually involves submitting updated details and paying the required fees.
Can I operate without a Shops and Establishments Registration?
No, it is illegal to operate an establishment without registering under the Shops and Establishments Act in India. Operating without registration could result in legal action and penalties.
Does the Shops and Establishments Act apply to every business?
The Shops and Establishments Act applies to all businesses operating in certain industries, but some establishments, such as government offices or factories governed by other specific labor laws (e.g., Factories Act), may not be covered.
Can an establishment be exempt from registration?
In some states, certain establishments such as educational institutions, hospitals, and government-run businesses may be exempt from registration under the Shops and Establishments Act. It’s important to check the specific state law for exemptions.
Can the registration be transferred to a new owner?
Yes, if the ownership of an establishment changes, the registration can be transferred to the new owner. The process generally involves submitting a request to the local authority along with proof of the ownership change.
What is the validity of the Shops and Establishments Registration certificate?
The registration certificate is generally valid until the establishment is in operation. It must be renewed periodically according to the state’s rules. The certificate must be displayed at the workplace for inspection purposes.
What are the obligations of employers under the Shops and Establishments Act?
Employers must comply with the provisions related to working hours, rest intervals, weekly offs, wages, leave entitlements, workplace safety, and welfare of employees. They are also required to maintain a register of employees and submit required details to the local authority.