Shop And Establishment Registration

A shop is defined as a place where good are sold or services are offered. The shop or an establishment is the smallest form of entity where the goods and services are sold. These include entities which provide the most basic service at the most basic level.

Moreover, any shop or establishment that commences operations must apply to the chief inspector for a shop and establishment Act license within the prescribed time. The application for the license must contain the name of the employer, address, number of employees etc.

The main objective of the shop and establishment Act is regulated by the Department of Labour and regulates premises wherein any trade, business or profession is carried out. The shop and establishment aim to regulate the payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in shop and commercial establishments.

In a nutshell, the major objective of the shop and establishment was to provide statutory obligation and rights to employees in the unorganized sector of the employment.

The Act comes under the category of state legislature i.e. it is a subject for the states and central does not right to frame the laws in this regard. The Act covers all the persons employed in an establishment with or without wages, except for the employer's family. And the State government carries the right to either exempt any enterprise permanently or for a limited time period from all or any provision of the Act. The main provisions of this Act are following: 1. Every shop has to get registered under this Act within 30 days of commencement or starting of work. 2. If the establishment is being shut down, the same must be communicated within 15 days of the closure of the establishment. 3. It lays down the hours of work per day and week. 4. It notifies the minimum wage that is required to be paid. 5. Also has provisions for annual leave, maternity leave, sickness and casual leave etc. 6. It has rules for termination of service and termination of service and also the obligations of employees and that of the employers.

It is (establishment) incorporated in this act are commercial establishments, eating the house, restaurants, residential hotels, theatres, and other places of public or entertainment. Other establishments that the State Government may, by notification in the Sanctioned Newssheet, declare to be an establishment for the purposes of this Act would then organize as establishments.

What is Shop?

Shop means any place:
Where services are extracted to clients. Where goods are sold.
Shop includes an office a store-room, godown, workplace or warehouse, whether in the same places or otherwise, used in connection with such trade/business
It is (shop) does not include a commercial establishment, residential hotel, restaurant, and factory, theatre, eating house or other places of public or entertainment.

What is Registration of Shop and Establishment?

As an owner of shop or establishment, you are compulsorily required to get same registered under the Shops and Establishment Act. Some rules are following:
You have to submit an application in the prescribed form to the Inspector of the area under 30 days of starting any work in your shop/establishment.

Specification of Procedure of XBRL

If you are planning to close your establishment, under 15 days of closing the establishment, notify to the inspector in writing the date of such closure and return the registration certificate. After due verification, the inspector shall remove the name of your establishment from the register of establishment and cancel your registration certificate must obtain a digital signature.