What is the need of shop and establishment registration?

With the legal status of an establishment, it is quite easier and simpler to avail the benefits from government. Thus, the need of the registration under shop and establishment act varies from state to state as the rules and regulations are framed by each state government.
Each business must mandatorily apply for shop and establishment act with 30 days from the date of commencement of business to avail multiple benefits and legality and the same should be apply as per the state framed rules. In order to do the hassle free business with multiple benefits, the proprietor or businessman, needs to register its business under shop and establishment act.
The proprietor needs to apply for the shop and establishment act on the website as per the state. Once the proprietor apply for the registration by following prescribed process, the department will issue the shop and establishment certificate or License.

What is the applicability of shop and establishment registration?

 The shop and establishment act is applicable on the following entities:

1. Retail and wholesale shops
2. Restaurants
3. Hotels
4. Theatres
5. Places of Public amusement
6. Commercial establishments
7. Eating houses
8. Dining houses
9. Clubs
10. Bakeries etc.
11. Store room, warehouse or godowns.
12. Residential hotels.

All the above-mentioned or related commercial establishments must apply for the registration under shop and establishment act.

Documents required for shop and establishment registration:

Every shop or commercial establishment must have following documents for registration of shop and establishment:

1. Photo of the Shop/Establishment that must have the name board at the entrance along with owner.
2. Incorporation Certificate. (In case of legal entity)
3. MOA & AOA of Company or LLP Agreement of the Company or LLP. (As the case may be)
4. PAN card/Passport/ Aadhar Card/ Driving License/ Voter ID Card.
5. List of the Directors/ Partners and their ID and Address proof.
6. Commercial address proof. (Latest Electricity Bill)
7. Board Resolution or Partners Consent.
8. Details of all the employees.
9. Rent Agreement (if required)
10. Copy of the partner’s consent.

What does shop and establishment act regulates?

The shop and establishment mainly regulates the following:

1. Working hours of employees
2. Wages/Salaries/Payments of employees
3. Term of service of employees
4. Working conditions of employees
5. Holidays/Leaves
6. Deductions from wages/Salaries
7. Prohibition of employment of children
8. Cleanliness
9. Accidents
10. Precaution against fire accidents.
11. Interval for rest and meals
12. Employment of young person or women
13. Enforcement and Inspection.
14. Record Keeping
15. Dismissal provisions

What is process of shop and establishment registration?

As the act differs from state to state, and thus the process for obtaining the registration may also differ from state to state. For the purpose of registration under shop and establishment; following steps to be followed:

Step1: Applicability: The very first step for this process is to check whether the shop and establishment act is applicable on particular business or not. If it is applicable then the applicant may file the application online or offline.

Step 2: Documentation: Before filing of application for shop and establishment registration, the applicant should arrange all the documents which are required for the filing purpose. Once all the requisite documents are arranged by the applicant, then he may proceed for further filing.

Step 3: Filing of application: Once the applicant check its applicability, then the owner needs to file the application in the prescribed form on the specified site of government. The applicant shall note that application should be filed in the agreed form and in agreed manner.The site for registration of shop and establishment varies as these are state license and each state government has its own portal for filing the same.

For example:

(i) For Karnataka one can login on https://labouronline.kar.nic.in/

(ii) For Delhi one can login on  https://labour.delhi.gov.in/

(iii) For Maharashtra one can login on https://mahakamgar.maharashtra.gov.in/

The applicant shall provide following details while filing the application:

1. Name of the establishment
2. Name of the employer
3. Address of the establishment
4. Category of the establishment
5. PAN of the establishment
6. Number of employees
7. Details of employees
8. Other details as requisite for filing the application.
9. Name of Manager
10. Nature of Business

     Step 4: Scrutiny: After the submission of application along with required details and documents, the concerned officer will scrutinize the application and in case and discrepancy marked by the officer, then he may ask for the justification over it. If it is asked, then applicant needs to comply with it within prescribed time and if no discrepancy marked then no such objection will be raised by the concerned officer.

     Step 5: Issuance of License/Certificate: If the concerned officer is satisfied with all the details and documentation present by the applicant, then the officer will issue the Registration Certificate/Licence to the applicant. The whole process will complete within 10-20 days.

What are the benefits of shop and establishment registration?

As mentioned earlier, registration under the shop and establishment provides, multiple benefits to the applicant; some of them are as follows:

1. Legality: If the applicant obtain the registration under shop and establishment act, he will get the legal status from the state to do the particular kind of business. Thus we can say after obtaining the License, the applicant’s business will be treated as Legal Business and he will not get harassed by any enforcement.
   
   
2. Better Management of Employees: Any establishment registered under the shop and establishment act, needs to follow specific procedures and code of conduct for the preservation of the rights of employees. The prescribed process provides a fair fair and healthier work culture to the employees.

3. No compliance cost: The shop and establishment registration includes onetime cost and i.e. for its registration/renewal process. This does not includes any further compliance and thus the applicant is free from any further compliance or its costing.

5. No Hassle: As the applicant will get the shop and establishment license, authorities like police, municipalities etc., may inspect and with this license, applicant can get these inspections done quickly and smoothly and make its business hassle free.
6. Facilities from government: With this registration, an applicant may get various benefits from government. The applicant may get low interest loans, good funding and financial plans.