Shop & Establishment Registration

Why to Register under Shop & Establishment?

The objective is to secure 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. It is a state regulation and each state has separate shop & establishment regulation.

Applicability of Shop & Establishment Registration

This registration is compulsory for every business place of work except those who falls under Factories Act 1948. Within 30 days of commencement of work, it is mandatory for every shop and establishment to register itself under Shop & Establishment Registration. Premises governed by the Act are shops, commercial establishments, residential hotels, clubs, restaurants, eating houses, theaters and other places of public amusement or entertainment etc. except those who falls under Factories Act 1948.

Features or Benefits of the Shop & Establishment Registration

Legal Entity Proof :

Each business or shop required a legal entity proof like proprietorship firm or partnership firm etc. a legal entity proof which gives the right for doing the business in your area or state for the same.

Business Bank Account:

Every bank is required a legal entity proof to open a current bank account. Each shop & Establishment has to open a separate bank account for the daily transactions as per the RBI Compliance. So, on the basis of the shop certificate you can easily open a current business bank account.

Smooth inspections:

State government and local municipality conduct regular inspection visits for checking the proper working of shops and establishments along with license as well. If you have the Shop Act license, then you can quickly get over the inspections every time.

Government Benefits:

Each state has a DIC Department which creates the policy in the respective state for the all small business. On the basis of Shop License Registration Certificate, you can avail benefits of Govt. Schemes.

Documents required for Shop & establishment Registration

  • Photograph of the Shop or Establishment at the entrance with Name Board in local language
  • Certificate of Incorporation, MOA & AOA of Company / LLP Agreement of the Company or LLP
  • Copy of PAN card
  • List of Directors or Partners and their ID & Address proof
  • Copy of Board Resolution or Partners Consent
  • Address proof of Company/LLP/Partnership/Proprietorship
  • Details of all the employees if any.
  • Office address
  • Date of commencement of business
  • Bank details (Bank Account and IFSC Code)
  • Business activity
  • Number of employees
  • Investment in Plant and Machinery or equipment
  • Investment in Plant and Machinery or equipment
  • Mobile number (linked with adhar card)
  • Email Id for OTP Verification

Amendment in Shop & Establishment Registration

Any amendment to the Shop and Establishment Act registration must be intimated to the concerned officer within the prescribed time. In case of closure of the establishment, the employer is required to intimate the respective officer and apply for surrender of the registration. The officer on being satisfied about the correctness of the application, will issue an order cancelling the existing registration and issue fresh Registration Certificate.

Records to be Maintained under Shop & Establishment Registration

Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually further no Regular return is needs to be filed under this Act.