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Shop & Establishment Registration

All those, who are planning to enter the business world, need to take registration under the Shop and Establishment Act as it is mandatory for most businesses. Shop and Establishment Act is covered under state legislation and each state has framed its own rules and regulations for the same. Since rules are framed by the state government, obviously, rules will differ from state to state and hence rules for the state in which registration is to be obtained needs to be followed.

Broadly, all shops, hotel, eating house, restaurant, theatres, place of public amusement or establishment and other commercial establishment etc. are covered under the Shop and Establishment Act and are required to obtain registration under the same.

The main objective of the Act is to protect the rights of both employer and employee. The Shop and Establishment Act generally regulates payment of wages, hours of work, terms of service, wages for holidays, leave policy, work conditions, overtime work, interval for meals and rest, prohibition for employment of children, employment of young persons or women, maternity leave and benefits thereof, opening and closing hours, closed days, weekly holiday, dismissal, cleanliness, lighting and ventilation, fire safety and precautions, accidents, record keeping, etc.

Establishment covered under the Act must apply for registration, within 30 days from the date of commencement of establishment, in prescribed form along with prescribed fees. Shop and Establishment Act is governed by labour department of the state and generally registration application is to be submitted to local district labour officer. If the concerned officer is satisfied with the application he/she will issue Shop and Establishment Act registration certificate. As mentioned earlier, application procedure would differ from state to state.

Penalty under Shop and Establishment Act
It is mandatory for all the establishment covered under the Act to obtain registration and follow all the rules and regulations prescribed under the same. In case of any failure in obtaining registration and / or following the rules and regulation of the Act, the establishment would be liable to pay the penalty. The penalty amount would vary from state to state.

Document Required for taking Registration under Shop & Establishment

In case of Proprietorship

  • Name of The Establishment
  • Passport Size Photo
  • Pan Card of the Proprietor
  • Adhar Card/Voter Id/ Driving Licence/ Passport
  • Address Proof of location of Office/ Shop
    1. a) Holding Receipt of the place/ Sale Deed (in case of self ownership)
    2. b) Rent Agreement/ No Objection Certificate from Owner (in case of Rented Property)
    3. c) Electricity Bill/ Telephone Bill/ Mobile Bill
  • Photo of Shop/ Office with Name plate/Board of organisation and standing with proprietor
  • Number of Employee
  • Mobile Number & Email Id
  • Other relevant details as called for

In case of Partnership firm/ Company

  • Pan Card of the Partnership firm/LLP/ Company
  • Incorporation certificate
  • MOA & AOA/ Partnership Deed etc.
  • Pan & Other identity Proof of Partner/ Shareholder/ Member
  • Passport Size Photo of Partner/ Shareholder/ Member
  • Address Proof of location of Office/ Shop
    1. a) Holding Receipt of the place/ Sale Deed (in case of self ownership)
    2. b) Rent Agreement/ No Objection Certificate from Owner (in case of Rented Property)
    3. c) Electricity Bill/ Telephone Bill/ Mobile Bill
  • Number of Employee
  • Mobile Number & Email Id of the establishment & also of all Partner/ Shareholder/ Member
  • Photo of Shop/ Office with Name plate/Board of organisation and standing with proprietor
  • Other relevant details as called for