The Shop and Establishment Act in India was
implemented to govern the rights and working conditions of workers that are
employed in the unorganized sector. The act requires all commercial
establishments like theaters, eateries, hotels, amusement parks, shops,
retail/trade business, etc. to apply for the license and registration within 30
days of commencing the business.
The Act asks the employers to declare the
Rest interval of
Opening and closing
Health and safety
Wages for overtime
National and religious
When do You Need a Shop and Establishment License?
When a business entity
starts employing people as contract-based or full-time employees, casual
workers, etc. then they need to register for the Shop and
Establishment licence within 30 days
of starting a business to enforce proper regulations for workers’ rights and
and establishment registration is required while establishing any
commercial place and is a state-based registration for which rules vary
according to the state. The commercial establishment as defined in the Act
sector establishments like trading, insurance, or banking organization
where people are employed to provide service or do office work
house, small café, boarding houses, eateries, hotels, etc.
and amusement establishments like cinema halls, theatres, amusement parks, etc.
Documents Required For Shop &
Since Every State Has Different Rules & Regulations For
Shop & Establishment Registration, The List Of Documents Required Tends To
Vary From State To State. However, A General List Is Given For Reference.
Size Photograph of Employer.
of Shop Along With the Owner.
of Management Employees.
of Employees Currently Working At the Establishment.
Proof of Establishment.
ID of the Owner.
& AOA of the Company.
Certificate Of The Company
Shops And Establishments Act License Renewal
As this registration is governed by the state, the procedure may be a little different in every state. Any shop or commercial establishment that commences operations must apply to the Chief Inspector for a Shop and Establishment Act License within 30 days. Do note that renewal must be completed before expiry of the license.
Shop and Establishment Registration: Advantages
The owner of the establishment may benefit from the registration in the following ways:
- The license will help the owner in getting a current account with the bank
- The owner will be at ease in case of unexpected visits by the inspector from the State
- The registration can be renewed easily online with minimal fee without the hustle
- Online registration is an easy and quick process
Q. Why was the shops and Establishments Act brought in force ?
The Shops & Establishments Act varies from State to State, and are rooted in the Central Shops & Establishments Bill which was promulgated by the Ministry of Labour as a model guidelines on which States could build their own acts. The Act is an attempt at consolidation of uniform benefits accruing from employment and service, be it in a shop, commercial establishments, hotels, restaurants, etc.
Q. What is an Establishment ?
Establishments are generally defined by this Act as commercial establishments, residential hotels, restaurants, eating houses, theaters, or other places of public amusement or entertainment. Additionally, State Governments may, by notification in the Official Gazette, declare other establishments that do not fall within such definition to be establishments for the purposes of this Act.
Q. What is the penalty for not obtaining such License ?
The penalties for not getting a license to vary from State to State. Additionally, since a Shop & Establishment license is one of the first certifications for commercial activities, they are often used as requisite documents for current accounts in Banks. Thus, not getting a license not only brings with it legislative sanction but also causes problems in day to day operations.
Posted by Pooja