What is Shop and Establishment License?
Every business is required to approach the Department of Labour to comply with the Shop and Establishment Act. This act governs the rights and working conditions of workers employed in the unorganized sector. It mandates all commercial establishments, including theaters, eateries, hotels, amusement parks, shops, and retail/trade businesses, to apply for a license and registration within 30 days of starting their operations.
The Act asks the employers to declare the following:
Working hours
Rest interval of employees
Opening and closing hours
Health and safety measures
Wages for overtime work
National and religious holidays
Who should have Shop & Establishment License?
Shop and Establishment License is Mandatory For:
Who is running a shop or having an office or place where they are carrying out business activity.
Every entity who has an office (or branch) where any commercial activity is being carried out.
Why shop establishment is mandatory to register?
Generally, individuals register under Shop & Establishment to open the current account with the bank as a bank does not allow to open a current account without at least two documentary proofs such as service tax registration, Import-export code and VAT registration etc. Apart from opening a bank account, it is more important to have this license otherwise inspector inspecting the business premises may cause unnecessary problems for the businessman.
Rietway Consultants Shop and Establishment Package
The Services which are included in our package are as Follows:
✅ Consultation
✅ Preparation of Documents
✅Application Filing
✅Shop and Establishment Certificate
Documents Required for Shop and Establishment License
Certificate of Incorporation/ Partnership Deed/ MSME
MOA / AOA of Company
Pan Card of Company
Id and Address Proofs of Partners
Number of Employees
Address proof for Registered office Proof
Shop and Establishment Procedure
Step -1 Arrange all Required Documents: The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step – 2: Preparation of Documents: The Next Step is Preparation of Documents to be Submitted at Department.
Step – 3: Filling of Application For Shop and Establishment: The next Step is Filling Of Application for Shop and Establishment
Step – 4: After Scrutiny and approval of the application Department Issues Shop and Establishment Certificate
Advantages of the Shop & Establishment Registration
- Facilitates opening a current account: Registering under this Act can enable an individual to open a current account with a bank, as the bank typically requires at least two documentary proofs, such as service tax registration, import-export code, and VAT registration.
- Smooth inspector visits: If an inspector from the state government or local municipality visits the office premises, having this registration can help avoid unnecessary problems, as the business is already registered.
- Minimal compliance: There is no need to comply with any further regulations after registration, resulting in a one-time cost.
- Online registration: The registration process can be completed entirely online and can be done in just two days.
FAQs on Shop & Establishment
What are the Objectives of Shop & Establishment?
The Indian government has established rules and regulations for the working conditions of employees in various establishments, including shops, residential hotels, commercial establishments, restaurants, theatres, and places of public amusement or entertainment. These regulations aim to provide uniform benefits to employees working in different sectors.
When is Shop and Establishment License?
Under the Shop and Establishment Act, every commercial establishment is mandated to register within 30 days of starting operations. This license serves as a basic proof of a commercial business and is required for obtaining various other licenses. Banks, in particular, often ask for this license as a prerequisite for opening a current account. The registration process requires submission of documents such as the PAN card of the business owner or the business itself, a copy of the rental agreement or sale deed, and employee details.
What is the validity of Shop and Establishment License?
The validity of Shop and Establishment License License is for the lifetime.