Shop Establishment Registration

Introduction

Welcome to CorpIQ's premier guide on Shops & Establishment Registration. In the vibrant marketplace of India, it is vital for businesses operating as shops, commercial establishments, or any other premises where trade or business occurs, to register under the respective state's Shops & Establishment Act. This registration ensures the rights of employees are protected and businesses operate within legal boundaries.

One of the crucial regulation to which most businesses in India are subject to is the Shop and Establishment Act which is enacted by every state in India. The Labour Department of the respective states regulates the Shop and Establishment Act. The Shop and Establishment Act is applicable on all the commercial establishments.

Benefits of Shops & Establishment Registration

• Legal Recognition: Offers a lawful standing to your business operations.

• Employee Benefits: Safeguards the rights of employees regarding working hours, wages, holidays, and other work conditions.

• Business Credibility: Enhances trustworthiness in the eyes of customers, suppliers, and other stakeholders.

Shop means any premises where selling of goods takes place, either by retail or wholesale or where services are being rendered to customers. It includes an office a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with the trade/ business. However, a shop does not include a factory, a commercial establishment, and residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment.

Establishments are commercial establishments, residential hotels, restaurants, eating houses, theatres, or other places of public amusement or entertainment and any other establishments which are notified by the State Government in the Official Gazette. Commercial establishment means a premise where any trade, business, profession or any work is undertaken or where the business of banking, insurance stocks, and shares, the brokerage is undertaken.

 WHY CHOOSE CORPIQ SERVICES?

• Streamlined Process: We simplify the intricate registration process, ensuring a smooth experience.
• Expert Assistance: Benefit from our seasoned professionals well-versed in state-specific regulations.
• Transparent Pricing: No hidden costs. A transparent fee structure for your peace of mind.
• End-to-End Support: From initial guidance to post-registration queries, we're with you every step of the way.

 DOCUMENTS REQUIRED FOR SHOP AND ESTABLISHMENT REGISTRATION:

The following documents required for obtaining the shop and establishment registration certificate is-

• Address proof of the Business or Establishment.
• Details of the existing employees.
• Identity proof of the proprietor.
• PAN Card of the proprietor.
• Copy of utility bill
• Certificate of incorporation
• Rent agreement, if premise is rented.
• Copy of Payment challan.
• Any other additional business licenses which are necessary for commencing the business.

 FEATURES OF SHOP AND ESTABLISHMENT ACT:

• The registration certificate must be prominently displayed at the establishment.
• This license must be renewed periodically.
• Every establishment needs to get registered within 30 days from the date of commencement of business.
• Through Shop registration certificate, the business can easily avail many government benefits.
• The license serves as legal entity proof.
• For opening a current bank account, bank use this license as a legal document.

 Regulations Governed by the Shops and Establishments Act?

The following regulations are governed by the Shops and Establishments Act:

• Payment of wages
• Hours of work, leave, holidays
• Working hours
• Prohibition of employment of children
• Provision for rest intervals
• Terms of service
• Record keeping
• Lightning and ventilation
• Cleanliness
• Dismissal policy
• Maternity benefits for women
• Other work conditions, if any

 PROCEDURES FOR OBTAINING SHOP AND ESTABLISHMENT REGISTRATION

Process for obtaining the registration certificate offline

The application is to filed and submitted to the Inspector of the area in the prescribed form within 30 days of commencing the business along with the prescribed fees.

The application must contain the following information:

• Name of the employer
• The name and address of establishment
• Number of employees
• Any such other details as may be required

On receiving of application, the Inspector will verify the correctness of the application. After being satisfied, the Inspector will enter the details in the Register of Establishments and issue a certificate of registration to the establishment. 

The validity of registration certificate is of 5 years.

It is to note that the registration certificate must be prominently displayed at the establishment and the Registration certificate is required to be renewed periodically.

In the recent scenario, Many States have a 100% online process, while some states are still following the manual procedure for filing.

 Process for obtaining the registration certificate online

• Log to the website of the labour department of the respective state.
• Fill the application form.
• Upload the requisite documents

• Pay the prescribed fees( varies from state to state)
• Verification and the inspection of the application by the labour department
• After approval of the application, the registration certificate will be issued online to the proprietor of the business.