What is a Shop and Establishment Registration Process?
Shop and Establishment Registration refers to the process of obtaining a Certificate or License which is issued to the business, professions, and trade registered under the provisions Shop and Establishment Act. All the rules and regulations of this Act are governed and administered by the Department of Labour.
Essentials for obtaining a shop & establishment license
- Name of both Employer and Manager.
- Postal Address of the said Establishment.
- Name of the Establishment.
- Category of Establishment such as the restaurant, amusement park, hotel, etc.
- The number of employees working.
Documents Required for Shop Act Licence
The documents required for the registration under Shop and Establishment Act are as following:
- Employer’s identity proof in the form Aadhar Card, PAN Card, Driving License, Voter ID.
- Employer’s passport-sized photograph.
- Photo of the Establishment or Shop.
- Copy of Rent Agreement or Lease Deed in case of rented property.
- Any Utility Bill in the form of Electricity Bill, Water Tax Receipt of the working premises. However, the said utility bill should not be two months older.
Other documents needed as per the concerned business or establishment or business are as following:
- In the case of a Trust, a list of number of Trustees.
- Memorandum of Association (MOA).
- In case of a Co-operative Society, a list of number of Members and Chairman.
- In case of a Partnership, Partnership deed with all the vital information regarding the firm’s name, name, and signature of all the partners along with the share percentage of each partner.
- A copy of the permission granted by RBI.
- copy of the Certificate of Incorporation (COI) issued under the Companies Act, 2013.
- A copy of the COR (Certificate of Registration) granted by the Charity Commissioner.
- A Resolution showing the list of Designated Directors.
- A Resolution concerning the commencement of the society’s business.
- RTO Transportation Permit.
- FSSAI license.
- Drug license.
- A copy of the permission granted by the collector.
- NOC (No-Objection Certificate) issued by the Police Department for the opening of a Cybercafe.
- IEC (Import Export Code) certificate.
- NOC (No-Objection Certificate) issued by the Municipal Corporation for the opening of a Flour and Masala Mill.
- Excise License required for the opening of a beer bar, restaurant or a wine shop.
- A Certificate issued by the SEBI (Securities Exchange Board of India) to the Share Broker.
- License issued by the Police Department for the opening of Security Services.
Shop and Establishment License Process
Refer to the following steps to obtain a shop and establishment license:
- Visit Labour Department Website
Registration process is Online in many states and in some state semi online. Every state has Labour Department Website and online Registration form is available thereon with instructions.
- Download the Application Form
Firstly, download the application form for the registration from the official website of the respective state in which the said shop or establishment is located.
- Fill in all the Required Details
In the next step, the owner of the business must fill all the necessary details asked. The details include the following listed:
Name of the Proposed Shop and Establishment
The Name and Details of the concerned employer
Name and Details of al the Employees working at that time
Address proof of the Registered Establishment together with the NOC (No-Objection Certificate) or the Rent Agreement
PAN card details of the concerned employer. - Upload Documents
Subsequently, Upload required Documents online after fill up the form. In some states, documents along with Printout of the application form needs to submitted physically.
- Pay Fee
The Fee varies as per business type and also License type. Payment option available online in many states otherwise can be payable offline by DD/cash.
- Inspection
Subsequently, the Labour Department examines your application. Sometimes, In order to verify the particulars you filled up and documents attached, an Inspector is appointed to carry out inspection of your business premises.
- Approval & Issue of License
After Examination of your application and/or Inspection of business premises. Authority approves your application and grant a License with validity (valid for 1 year with renewal every year)
Note: However, the process of obtaining registration might take around 15 to 20 working days in the major city areas. However, the same may vary from one state to another.
Key Points Considered while Obtaining a Shop and Establishment License
The things that must be taken into consideration while applying for the Shop and Establishment Registration are as follows:
- The Inspector appointed can visit the registered premises for verification.
- Additionally, the Owner of the business must display the certificate of the Shop and Establishment Registration at a place easily accessible in the particular premises.
- The License issued must be timely renewed prior to its expiry date.
- If in case the owner wants to close his establishment, then he needs to notify the inspector in writing about the closure within 15 days of the closing.
- Despite the Shop and Establishment License, the owner of the proposed business is also required to obtain prior approval from the respective state Department of Labour for the commencement of the business activities in that state.
FAQs
A Shop and Establishment License remains valid for a period of one year, and the same is eligible to get renewed every year. Further, the rules and regulations regarding the issuance and renewal of licenses vary from one state to another.
No, a factory is not covered under the provisions of this Act.
Yes, every business and shop irrespective of the number of employees must obtain the License under the Act.
The penalties imposed for not obtaining a Shop License vary from State to State.
Trade License is a license or permission issued by a municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade.