December 19, 2019
5 min read
Know what shop and establishment registration is, benefits of registration, and the shop and establishment registration process.
Starting a business in India requires numerous formalities to be dealt with, that depends upon the nature, scale, type and industry of the business. When it comes to commercial shops and establishments, they are required to obtain a special registration certificate as proof of the nature of their commercial business. This registration is commonly known as Shop and Establishment registration. Let’s have a look at what shop and establishment registration is, benefits of registration, and the shop and establishment registration process.
Every business that falls under the category of a commercial shop and establishment needs to register itself under the Shop And Establishment Act within 30 days of commencement of its work. Under the Act, a Shop And Establishment registration is granted, certifying that the hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments for public entertainment or amusement and other establishments are regulated as per the Act.
The shop and establishment registration is mandatory in nature. Every state has its own shop and establishment Act and the business must obtain shop and establishment registration as per the procedure laid down under the state shop and establishment laws. The registration under shop and establishment laws is known by different names in different states. For instance, in Bihar it is known as the Trade license, in Maharashtra it is called the Gumasta License, in Delhi, Haryana and UP, it is known as the shop and establishment license.
The mandatory requirement to obtain shop and establishment registration in India is applicable to:
According to the Shops and Establishments Act, the term establishment means a shop or a commercial establishment, including commercial spaces, residential hotels, restaurants, theatres or other places of public amusement or entertainment. In addition to this, the state government also declares establishments for the purpose of this Act.
According to the Act, a commercial establishment means a premise where any trade, business, profession or any work which is related to it is undertaken. Accordingly, a commercial Establishment could include:
A society registered under the Societies Registration Act, 1860.
Registered or unregistered charitable or other trusts.
Journalistic and printing establishments.
Contractors and auditors establishments.
Quarries and mines not governed by the Mines Act, 1952.
Educational or other institutes run for private gain.
Any premises where the business of banking, insurance, stocks and shares, brokerage or produce exchange is undertaken.
Theatres and cinemas.
Restaurants and eating houses.
Residential hotels, clubs.
Other places of public amusement or entertainment.
Shop means any premises where:
Goods are sold, either by retail, wholesale, or
Services are rendered to customers.
This could include an office a store-room, godown, warehouse or workplace, whether in the same premises or otherwise, used in connection with such trade/business.
This definition does not include a factory or a commercial establishment under the Factories Act, 1948. It is advised to consult a good business consultant in India to know about the applicability of shop and establishment registration on your business. Call SeekWiser’s business expert at: 8010880066
Though all the states have their own shop and establishment laws, the regulations laid down under these laws are very similar in nature. The provisions under shop and establishment laws regulate:
Working hours in a day and week.
Spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work.
Employment of children, young persons and women.
Annual leave, maternity leave, sickness and casual leave, etc.
Employment and termination of service.
Maintenance of registers and records and display of notices.
Obligations of employers as well as employees.
Call SeekWiser’s business expert at: 8010880066
The process to obtain shop and establishment registration is similar in almost all the states, however, certain requisites may differ. A business advisor in India can help you in understanding the requirements for obtaining the shop and establishment registration license in the State where you are conducting your business.
The certificate for shop and establishment registration can be obtained by filing an application with the Chief Inspector of Shops and Establishment Act, or from other inspectors delegated to the area where the business is established.
The application must be filed in the format prescribed under the state law along with the requisite documents. Once the application is received, the inspector performs a verification process to check the details, makes a visit to the establishment and provide a registration certificate to the business. The shop and establishment registration certificate must be displayed in a prominent place in the place of business.
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Photograph of place of business at the entrance with Name Board in local language
Proof of business incorporation.
Copy of PAN card.
List of Directors or Partners and their ID & Address proof.
Copy of Board Resolution or Partners’ Consent.
Address proof of the business.
Details of all the employees of the business.
The shop and establishment Act registration is a compulsory requirement of all businesses which operate from a commercial establishment or shop in India. Obtaining the shop and establishment registration gives legal status of the business and verifies that the business is following all the regulations set under the Act relating to the employment of individuals in the business.
SeekWiser’s IVR makes it easier for businesses to talk to the best business experts- CA, CS and lawyers in India. Give us a call at 8010880066 or send us an email at email@example.com to get further information about shop and establishment registration in Delhi, UP, Mumbai, Karnataka, and all other states in India.
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