Shop Establishment Act Registration

Overview

Shop establishment act refers to the act which provides and regulates various provisions in a business. These includes condition of the workers, rights of the employees, etc. This act also provides obligations for the employer. This Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places shops, retail trade/businesses come under the purview of the Act and other organization established for the purpose of profit making.

This act is used for the following reasons:

• National holiday
• Over-time work
• Hours of work
• Intervals for rest and meals
• Prohibition of employment of children
• Terms and conditions
• Dismissal
• Record keeping
• Accidents
• Opening and closing hours
• Close days
• Weekly holidays
• Wages for holidays
• Time of payment

And many more.

Commercial Establishment

• 1. Any commercial sector, such as banking, trading or insurance establishments
• 2. Any establishment where individuals are employed or engaged to do office work or provide service
• 3. The hotels, eateries and boarding houses or a smaller café or refreshment house
• 4.Amusement and entertainment places such as theatres and cinema halls or amusement parks

These list vary from state to state and hence cannot be specified here.

Registration process

The duration of receiving of certificate, process, fees, regulations and other formalities vary from state to state.

• 1. An application for the certificate of the registration under this act is to be submitted with the officer in charge within the 30 days of the commencement of the business.
• 2. This application must be submitted along with the fees prescribed by the state authorities and following details :
  • Name of the employer
  • Name of the business or the establishment
  • Address of the business or the establishment
  • The category under which the establishment is being registered
  • Total number of the employees working in the establishment
  • Date of commencement of the business/ establishment
  • Working hours and holidays
• 3. State's labour department is the authority under which the registration takes place. It is the concerned authority which lays down the process of the registration.
• 4. The officer in charge will be the local district labour officer, will grant/ provide the business, the certificate for the registration.
• 5. Number of workers directly affects the fees for the registration. The more workers working, the more will be the fees.
• 6. After the compliances are complete by the employer or the business, the officer in-charge will review the application. Once satisfied by the application, he/ she will issue the certificate of the registration being successful.
• 7. This certificate issued must be displayed in or out of the organization. Also the license of the organization must be reviewed by the inspector in-charge periodically.
• 8. In case, the organization decides to shut down its operations then the employer has to submit the application within 15 days of the closure. The officer in-charge will then cancel the registration of the organization.
• 9. Intimation about any change must be given to the inspector.

Documents Required for Shop Act Registration

• F or Individual/Proprietorship Concern/HUF
  1. Photo of shop clear with Name Board
  2. Trade License
  3. Copy of PAN card
  4. ID and Address proof of residence
  5. Address proof of concern
  6. Details of employees if Any
  7. Contact and Email id of proprietor
• F or Company/LLP
  1. Photo of company clear with Name Board
  2. Certificate of Incorporation, MOA & AOA of Company/ LLP Agreement of the Company or LLP
  3. Copy of PAN card of company/LLP
  4. List of directors /DP their DIN and address and ID proof
  5. Copy of Board Resolution
  6. Address proof of Company
  7. Details of employees if Any
  8. Contact and Email id of Partners
• For Partnership Firm
  1. Photo of shop clear with Name Board
  2. Partnership deed
  3. Copy of PAN card of Firm
  4. Address and ID proof all partners
  5. Copy of Consent Letter signed by all partnersv 6. Address proof of partnership concern
  7. Details of employees if Any
  8. Contact and Email Id of Directors

Utility of Shop Act Registration

• 1. Legally bound to comply and gives validity to business or the person to work.
• 2. Acts as business proof at different places such as bank for account opening and processing a loan.
• 3. Government benefits which are given to few small business which are shortlist through shop establishment license.
• 4. Smooth running of business and strong paper work leads to great stability and confidence.
• 5. It legalized a business enterprise.