+91 - 8376000125
USA - +1 213 579 5514

Unit No.206, SS Plaza Sector-47, Gurgaon, Haryana-122018
 
     
   
 
 
     
   
 

Shop & Establishment

About Shop & Establishment

Shops and Establishments Registration

Shops and establishments act deal with several operations that follows the shops, restaurants, theatres or the commercial establishments in the country. However, the word ‘Establishment’ means a shop or commercial foundation. Many entertainment resources are also covered under this Act. When registering for the shop and establishment act in the case of SSI or MSME businesses in the unorganized sector, it serves as a proof for the existence of the business.

For Whom

Applicability Applies to all commercial establishment which includes shops, offices, schools, hospitals, societies, charitable trusts, educational institutions which operate for the motive to earn profits. However, factories are not covered by the shops & establishments Act and are regulated by the Factories Act, 1948.Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business

Benefits

Features or Benefits of the Shop & Establishment Registration

  • Legal Entity Proof – Each shop or business required a legal entity proof like proprietorship firm or partnership firm etc. a legal entity proof which gives the right for doing the business in your area or state for the same.
  • Business Bank Account – Every banks is required a legal entity proof to open a current bank account. Each shop & Establishment has to open a separate bank account for the daily transactions as per the RBI Compliance. So on the basis of the shop certificate you can easily open a current business bank account.
  • Smooth inspections – State government and local municipality conduct regular inspection visits for checking the proper working of shops and establishments along with license as well. If you have the Shop Act license, then you can quickly get over the inspections every time.
  • Government Benefits – Each state have a DIC Department which creates the policy in the respective state for the all small business. On the basis of Shop License Registration Certificate you can easily avail the government benefits

Eligibility

Eligibility Criteria for Shop and Establishment Act

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

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
  • The hotels, eateries and boarding houses or a smaller cafe or refreshment house
  • Amusement and entertainment places such as theaters and cinema halls or amusement parks

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

Documents Required

  • Certificate of Incorporation, MOA & AOA of Company / LLP Agreement(Deed) of the LLP
  • Copy of PAN Card of the Company or LLP
  • List of Director or Partners and their ID and Address Proof and Copy of Board Resolution or Partners Consent
  • Actual Photo of the Shop or Establishment with Name Board in local language at the entrance duly displayed
  • Address Proof of the Company or LLP where the name of the company is clearly mentioned.
  • Copy of the Licence, Permit, Registration which is mandatory under any law to be obtained prior to starting the business of the applicant in India.
  • Bank Accounts Details

Steps for Applying

Procedure For Getting Registration Certificate Under The Shops And Establishment Act

Fill – Fill the online application form – form 49A

Pay – Make Payment online

Sign – Download the prefilled application and affix photos and signature.

Send – Send the signed application and supporting documents by post or courier to the address provided in the welcome mail

Within 30 days from the date of commencement of business, the employer of shops or commercial establishment is required to send an application in the prescribed form to the Inspector in charge along with prescribed fees.

Shops and establishment act registration is obtained from the Labour Department of the State. Generally local district labour officers are declared as inspectors under this act to grant registration certificate.

Fee for registration depends on the number of workers employed in the organization.

Regulations

Regulations under the Act

This act lays down the following rules:

  • No. of working hours for the employees per day and week.
  • Important instructions and rules relating to and for spread-over, rest interval, opening and closing hours, closed days, overtime work and national holidays.
  • Rules governing the employment of children, young adults and women.
  • Rules governing annual leave, maternity leave, sickness and casual leave, etc.
  • Rules for employment and termination of service of the employees.
  • Rules governing maintenance of registers and records and display of notices.
  • Obligations of employers as well as employees towards each other and the business.

FAQs

1. Whatis the meaning of Shops & Establishment? The Delhi Shops and Establishments Act defines a “shop” as:

””shop” means any premises where goods are sold either by retail or wholesale or where services are rendered to customers and includes an office, a store-room, godown, warehouse or workhouse or workplace, whether in the same premises or otherwise, used in or in connection with such trade or business but does not include a factory or a commercial establishment.”

2. The Delhi Shops and Establishments Act defines an “establishment” as:

”establishment” means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies and includes such other establishment as Government may, by notification in the Official Gazette, declare to be an establishment for the purpose of this Act.”

3. When Can a Business Owner have to register his business Under Shop & Establishment Act 1954?

As per the Act, the business owner can registered his business at first day of Commencement of business or within 30 days of commencement of a business. In case the business owner fails to get registered within 30 days of commencement of business he is liable for penalty.

4. What types of premises are governed by the Shop Act Law?

Broadly speaking the premises governed by the Act are shops, commercial establishments, residential hotels, clubs, restaurants, eating houses, theatres and other places of public amusement or entertainment.

5. What is the time period to get Shop Act Certificate once applied?

Once all the details received for Registration, Certificate will get 24 hours.

6. To Whom Shop & Establishment Act is applicable?

As a business owner are compulsorily required to get the registered under the Shops and Establishment Act. Any commercial establishment- any office, cafe, restaurant, or any other commercial establishment would be covered under the legislation and hence is required to apply for the registration of the such establishment, usually within 30 days of commencing work in such establishment.