Shop and Establishment Act Registration

Every state has enacted its own Shop and Establishment Act (“Act”). However, the general provisions of the Act are the same in all states. The Shop and Establishment Act is regulated by the Labour Department of the concerned states. All the shops and commercial establishments within the state are regulated by the state. The respective states issue the registrations under the Act, and thus it slightly differs from one state to another state.

Shops mean premises where the trading of goods takes place It includes offices, godowns, storerooms, and warehouses used in connection with the trade or business.
Commercial establishments mean a commercial, banking, trading, or insurance establishment or administrative service in which persons are employed for office work. It includes a hotel, boarding or eating house, restaurant, cafe, theatre, or other public entertainment or amusement places. However, factories and industries are not covered by the Act and are regulated by the Factories Act, 1948 and Industries (Development and Regulation) Act 1951.

Registration Under The Shop and Establishment Act

The shops and commercial establishments covered under the Act must mandatorily apply for registration under the concerned Act. Every establishment and business must obtain a Shop and Establishment Registration Certificate or Shop License (“Certificate”) under the Act.

The proprietors who Operate a business from home without having any physical store or premises are also required to obtain this Certificate. The proprietors of e-commerce business or online business, or online stores and establishments must register under this Act and obtain the Certificate. Every shop and commercial establishment should register itself under the Act within 30 days of commencement of business.

The Certificate or the Shop License acts as a basic registration/license for the business. This Certificate is produced for obtaining many other business licenses and registrations. It may be used as proof of the registration of commercial establishments or shops. It is also useful when the proprietor of the business wants to obtain a loan or create a current bank account for the business. Most banks will ask for this Certificate for opening a current bank account.

Process For Obtaining Shop and Establishment Registration

The procedure for obtaining the Shop and Establishment Registration Certificate differs from state to state. It can be obtained online or offline.
Documents Required For Shop and Establishment Registration

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

• Shop or Business Establishment address proof.
• ID proof of the proprietor.
• PAN Card of the proprietor.
• Details of the employees.
• Payment challan.
• Additional business licenses are necessary for starting the business if any