Shops and Establishments Act License in India have been enacted by the states to regulate conditions of work. Additionally, it provides the statutory obligations of the employers and rights of the employees in the unorganized sector of employment.
Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.
Table of Contents
Which Businesses Come Under Shops and Establishments Act License?
The Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any trade, business, or profession is carried out.
The act regulates the working of commercial establishments. The list includes societies, charitable trusts, printing establishments, and educational institutions run for gain. Additionally, it includes the premises of banking, insurance, stock, or share brokerage.
Also Read: How to Register a Company/ Startup in India
The Shop and Establishment Act in India is promulgated by the state and may slightly differ from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.
- A commercial or trading or banking or insurance establishment, or
- An establishment or administrative service in which persons employed or mainly engaged in office work, or
- A hotel, restaurant, boarding or eating house, a cafe, or any other refreshment house or
- A theater, cinema, or any other place of public amusement or entertainment.
- A shop where goods are sold, either by retail, or wholesale, or where services are rendered to customers. It includes an office storeroom, godown, warehouse, or workplace, whether on the same premises or otherwise, used in connection with such trade/ business.
It must be mentioned here that the shop and establishment act is not needed for factories. Factories come under the Factories Act of 1948.
Regulations Under Shops and Establishments Act License
This act lays down the following rules:
- Working hours per day and week.
- Guidelines for spread-over, rest interval, opening, and closing hours closed days, national and religious holidays, and overtime work.
- Rules for the employment of children, young persons, and women.
- Rules for annual leave, maternity leave, sickness, casual leave, etc.
- Maintenance of registers and records and display of notices.
- Rules for employment and termination of service.
- Obligations of employers as well as employees.
- Cleanliness, lighting, and ventilation
- Precautions against fire
- Record keeping
How To Apply For Shops and Establishments Act License Registration in India
Every business owner of any shop and establishment is compulsorily required to get the registration under the Shops and Establishment Act. Here are the following steps:
1. Application Submission:
Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. Additionally, you need to submit the application along with the prescribed fees. However, it must contain the following information:
- Your name as the employer and the name of a manager, if any;
- The postal address of your establishment;
- The name of your establishment;
- Telephone No
- Email Address
- Nature of Business
2. Date of Commencement of Business
After receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you.
This certificate is valid for 5 years. And you need to renew thereafter. After getting the certificate, you will need to display that at your premises.
If you want to close down your establishment, within 15 days of closing the establishment, notify the Inspector in writing the date of such closure and return the registration certificate.
After due verification, the Inspector shall remove the name of your establishment from the Register of Establishments and cancel your registration certificate.
The rules under the Shops and Establishments Act License vary for the different states. It is recommended to check the details with your state’s specific officer.