SHOP & ESTABLISHMENT REGISTRATION

Shop and Establishment is the most important license in India which is regulated by the Department of Labour. It was established in the year 1953 and is defined state-wise which means that the Shops and Establishment Act differs in every state.

This act is not only applicable to commercial establishments, but also charitable trusts, educational institutions which work for profit, banking, insurance, stock brokerage, society, amusement parks, etc. Excluding factories.

Shop and Establishment Act regulates the wages of workers, working hours, holidays, leaves, term of service, working conditions of labourers working in the above said establishments. The establishments that come under the scrutiny of this act mandatorily have to get the Shop and Establishment Registration done within 30 working days of the commencement of work.

KEY POINTS ON SHOPS & ESTABLISHMENT

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.

Meaning of Shop

A premises where any trade or business is carried on or where services are rendered to customers. It includes offices or warehouses, whether in the same premises or not, used in connection with such trade or business, but does not include a shop or office attached to a factory within the scope of the Factories.

Commercial Establishment

A Commercial Establishment shall mean a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house etc a cafe or any other refreshment house, etc




Information required for filling up of Form A

Name of The Company

Postal Address

Telephone No / E-Mail Address

Details of Director/ Managing Director/ Proprietor – Address, Ph.No, eMail ID

Details of Authorized Signatory (in case whose is signing in the place of Director)

Nature of Business

Date of Commencement of Business

No. of in the Company (Male & Female to be mentioned separately)

Weekly Holiday

WHAT ARE THE REGULATIONS UNDER THE SHOP AND ESTABLISHMENT ACT?

Shop and Establishment being an important license providing statutory obligation and rights to the employer and employees in the unorganized sector have certain objectives to regulate which are as follows:

  • Working Hours
  • Prohibiting employment of children
  • Lunch break and interval
  • Weekly holiday
  • Leave policy
  • Payment of wages
  • Cleanliness and Hygiene of workplace
  • Lighting and Ventilation
  • Safety and precautions
  • Record Keeping
  • Accidents
  • Dismissal
  • Salary Deductions

SHOPS AND ESTABLISHMENT ACT REGISTRATION

As the Labour Department manages and controls the Shops and Establishment Act which is specific to each state and compulsory for all business organizations which are not confined or applicable to the Factories Act 1948. This registration is also mandatory for people working from home.   Read More



FAQ's

Be it any shop or establishment it requires to obtain the registration certificate within 30 days of commencement of work. This being a fundamental license, all the commercial businesses require this as a authentic proof for other licenses.
This act is applicable to any office or shop running commercial activities on even for employing an employee. The Office will be covered under the Shop and Establishment Act and all the regulations of this act is applicable, though your company is registered under companies Act.
The service is state specific in case you need a shop license and will be rendered only in specific cities being Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune and Delhi.
Since the Shop and Establishment Act is completely under the control of Labour Department, all the establishments need to maintain up to date records regarding employee details, deductions, wages, fines, holidays, etc. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.
All the states in India have set their own terms and conditions for the working class. The reason being to safeguard and offer uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.
Yes, the act is applicable to any establishment employing 20 or more employees.
The Certificate needs to be renewed every three months.
No, within 15 days of such transfer the Registration Certificate has to be surrendered specifying the change of ownership and apply for a new Registration Certificate.
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