If you own a shop or any other commercial establishment in India then you must apply for a Shop and Establishment License within 30 days to the Chief Inspector. You can also apply for the license by filing an application in your respective state.
The application form must contain the name of the employer, address of the establishment, the name of the establishment, the category of the establishment, number of employees and other admissible details as desired.
What is the Shop and Establishment Act?
Shop and Establishment Act regulates the condition of work and enlists the right of employees in an organised sector. This Act is not restricted to the commercial establishment but also applicable to societies, charitable trust, educational institutes and any other establishment which runs on the motive of earning a profit.
The Act also offers the obligations of an employer. The very first requirement is to obtain a shop act license from the concerned authority under the Act. Areas include working hours, holiday, overtime, leave policy, work policy, etc.
Shop and Establishment Act in India
The Act comes under the authority of the Department of Labor and it supervises and administers any establishments wherein any trade, business or profession is carried out. The act keeps a close eye on commercial establishments and also the working of the societies, printing firms, educational institutions and other premises which undertake banking, insurance, stock or share brokerage.
In India, The Shop and Establishment Act may slightly differ from state to state as each state follows their separate operation.
The following are specific aspects of the Shop and Establishment Act :
- Hours of work
- Interval for rest and meals
- Prohibition of employment of children
- Employment of young person or women
- Opening and closing hours
- Close days
- Weekly holidays
- Wages for holidays
- Time and conditions of payment of wages
- Deductions from wages
- Leave policy
- Lighting and ventilation
- Precautions against fire
- Record keeping
Information that needs to be furnished for Shop and Establishment License Registration:
- Name of firm
- Address of Firm
- Name of Manager, if any
- Nature of Establishment like Nature of shop, Like Clothing Store, Furniture Store
- Number of Employees in the Establishment
- Day of Holiday, etc
What are the documents Required for Shop and Commercial Establishment Registration?
- Aadhar Card / Voter Id / Driving License / PAN
- Photo of Owner
- Photo of Shop along with Owner ( you can Click with Mobile Phone as well )
- Rent Agreement, if Rented
- Electricity Bill
Some important points to keep in mind while applying for shop act licence online or offline
- After obtaining the Registration Certificate if there is any change to be made then the same should be notified to the Chief Inspector.
- Registration Certificate to be obtained within 90 days of the commencement of the business
- Placement agencies providing domestic services to also be mandatory registered under the Shop and Establishment Act
- For any reason, if you fail to obtain shop act licence under the act then you need to pay the penalty for the same.
In India, The Shop and Establishment Licence is mandatory to display while carrying out day to day business. You need this licence during all the stages of Business registration. Make sure you have this licence for your business.