Shops & Establishment License

Shop and establishment license| How To register| 2020

If you are starting a commercial establishment or a shop, you need to file for registration under the Shop and Establishment Act, within 30 days of commencement of your establishment. As the owner of a shop and establishment, it is compulsory to register for the Shop & Establishment Act. This act is applicable nationwide and the establishment such as hotels, amusement parks, theaters and other such entities that come under the purview of the act.

The following establishments and shops are required to register under this act-;
  • Any entity from the business sectors such as banking, trading or insurance establishments
  • Any establishment where individuals are employed to provide their services in exchange for money.
  • The hotels, eateries and boarding houses or a smaller cafĂ© or refreshment house
  • Amusement and entertainment places such as theatres and cinema halls or amusement parks

All such above mentioned commercial establishments come under the Act and need to adhere to the norms and regulations set by the Act for the treatment of their employees. And the main objective of the Shop and Establishment Act is to protect the rights of both employer and employee.

Request a Call Back

Submit

The main provisions of the Shop and Establishment Act are as follows-:

The main objective of the Shop and Establishment Act is to protect the rights of both employer and employee. This act basically notifies about rules, duties or obligations of employees and employers.

  • Every shop and establishment has to register under this act, within 30 days after starting the commencement of work.
  • It notifies the minimum wages that are required to be paid based on the registered shop and established.
  • It regulates the hours of work per day and week
  • It has also provisions about the annual, maternity leave, sickness, and other leaves.
  • Its has also rules about the termination services and duties or obligation

Documents required for Shop & Establishment Registration

  • Pan Card of the shop and establishment
  • Aadhar Card
  • MOA
  • AOA
  • Premises proof
  • Number of employers
  • Details of Employee
  • Partnership deed ( in case of partnership)
  • Authorization letter from the partners

Frequently Asked Questions

  • The shop and Establishment Act regulates the condition of work and enlists the right of employees in an organized sector. It is not limited only to the commercial establishment but also required for societies, charitable trust, educational institutes and other such establishments that run on the motive of earning a profit.

  • The objectives of the shop & establishment act is to protect the rights of both employer and employee. This act basically notifies the rules, regulations, duties, and obligations of the employer and employees.

  • Every shop and establishment has to compulsorily register under the shop & establishment act. Under this act it mandatory to register with 30 days of commencing a business.

  • Certificate will be valid up to the end of every year. It should be renewed every year. The renewal application has to be made not less than 15 days before the expiry date of the certificate.

  • The applicable fee for the shop & establishment registration depends on the size of the organization and the number of employees working in it.

    • Every employee has a right to take 15 days paid leave, 12 days casual leave and 12 days sick leave
    • Every employee is authorized for the overtime wages worked beyond the normal working hours.
    • Every employee is applicable for the weekly holiday with wages and also the national and festival holidays.
    • Every employee is entitled to get the wages for the period of work rendered to the employees.

  • It is mandatory for an employer to notify the inspector regarding the closing of his establishment within 10 days. The inspector thereafter will cancel the registration of the establishment.

  • Certificate will be valid up to the end of every year. It should be renewed every year. The renewal application has to be made not less than 15 days before the expiry date of the certificate.