Shop and Establishment Act is applicable to all the commercial establishments, such as the hotels, and eateries, theatres, amusement parks, and other entertainment houses, as well as any other such public amusement places,
This act regulates the payment of wages, terms of service, working hours, and other work-related conditions of employees in shops and commercial establishments. Any shop/commercial establishment in India must register under the act within a period of 30 days of establishment.
How to apply for registration
- Name of the establishment.
- Name and details of the owner and the employees.
- Address of the establishment and a copy of sale deed or rental agreement for the shop.
- Business or the owner’s PAN card.
All the above details are to be filled in the form and submitted to the Inspector along with the prescribed fees.
The inspector, after checking the details received in an application, visits the establishment, if required, shall provide a registration certificate under the Act. The registration certificate needs to be displayed in a prominent place in the shop and renewed in case of any changes in the details provided or upon expiry. The shop and Establishment Act registration is one of the mandatory requirements of all businesses which operate from an establishment or shop. Any changes made in the details or the closure of such an establishment need to be initiated to the inspector within 15 days of the said change or closure.
Even if someone is working from home, a license under this act is mandatory.
It covers – restaurants, hotels, shops, theatre, commercial establishments, public amusement, and retail trade/business.
All such commercial establishments come under the Act and need to fulfill all the terms and conditions.
When there is a need for registration?
Registration of commercial establishments or a shop, there is a need to register under the Shop and Establishment Act within 30 days of the commencement of establishment.
This registration is mandatory for several reasons:
- For the opening of the current account in a bank.
- This Shop and Establishment Act license, forms as a basic license and a proof of business to apply for other registrations required to run a business in India.
Shop and Establishment forms are available online on the government website.
As each state has different rules and regulations for registration under the Act, the basic procedure remains the same.
Every business, under this act, is required to get approval from the Department of Labour.
The registration certificate is obtained from the Chief Inspector of Shops and Establishment Act, or from other inspectors delegated to the area where you run the establishment.
