Shop and Establishment Registration Process

author portrait

Lasya Pamidi

Legal
License
Shop and establishment Act
Shop and Establishment License
Last updated on April 30th, 2021

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

Documents Required for Shop Act Licence

The documents required for the registration under Shop and Establishment Act are as following:

Other documents needed as per the concerned business or establishment or business are as following:

Shop and Establishment License Process

Refer to the following steps to obtain a shop and establishment license:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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:

FAQs

What is the Validity Period for a Shop and Establishment License?

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.

Are Factories covered under the ambit of the Shop and Establishment Act?

No, a factory is not covered under the provisions of this Act.

If in case a business does not have any employee does it still need to take Registration under the Shop and Establishment Act?

Yes, every business and shop irrespective of the number of employees must obtain the License under the Act.

What is the penalty for not obtaining such a License?

The penalties imposed for not obtaining a Shop License vary from State to State.

Got Questions? Ask Away!

  1. 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.