Shop & Establishment License
Meaning of Shop & Establishment License?
A Shop & Establishment License is a document or a certificate that gives the permission to the applicant (i.e. the person seeking to open a business) to employ people may be as casual workers, full-time employees, contract-based, etc to regulate the work conditions and ensure the workers’ rights are protected. Every state has a separate Rules and Regulations regarding the Shop and Establishment Act.
Why Shop & Establishment License is required?
The Shop and Establishment Act license is issued to a business, trade, professions registered under this Act. All the rules and regulations of the Act are governed by the Department of Labour that not only regulates commercial establishments but also to keep a check on the working of charitable trusts, societies, educational institutes and other premises such as banking, stock exchanges, insurance companies, share brokerages, etc. Both organized and unorganized sectors are regulated under this act that makes sure appropriate working conditions are provided to the labours. The rules and regulations formed under this Act vary from state to state but the primary goal remains the same. Therefore, the establishment that has to obtain the license has to file an online application concerning his state official portal.
Who Issue’s Shop & Establishment License?
Shop & Establishment License is issued by the licensing department of the labour law in respective states, in which the applicant is applying for the license.
The issuance of the license varies from state to state depending on the local government agencies' rules and regulations.
Objectives of Shop & Establishment License
All Indian state has enacted certain rules and regulations with regard to conditions of work. The main objective of this license is to secure uniform advantages for employees working in different establishments from shops, residential hotels, and commercial establishments to restaurants, theatres, and other places of public amusement or entertainment. Additionally, it regulates the wages, holidays, incentives, etc. to set better standards for the working conditions of the employees.
Benefits of Shop & Establishment License
Who can apply for the Shop & Establishment License?
Documents required for getting Shop & Establishment License
In order to apply for a Shop & Establishment License, the applicant is required to make an application and submit the same along with all the necessary documents.
There are different documents that are required to be provided depending on the type of business intended to be carried on by an applicant.
What provisions are governed by the Shop & Establishment Act?
What are the records to be maintained under Shop & Establishment License?
Every business has to seek approval from the Department of Labour and keep up-to-date registers
Maybe the requirements vary from state to state but files related to annual holidays and the number of employees need to be submitted to the office of the Municipal Corporation annually.
Fees Structure for registration
The fee structure is based on the number of workers and sanctioned electrical load for one year. The factory owner can apply for Grant, Renewal of Licence for one or five or ten years, and accordingly, the fee shall be deposited in the multiplication of a number of years.
|H.P. Installed||Maximum number of workers to be employed on any day during the year|
|Upto 20||21 to 50||51 to 100||101 to 250||251 to 500||501 to 750||
751 to 1000
|Above 10 and upto 50||400||600||800||2000||4000||6000||8000||10000|
|Above 50 and upto 100||800||1000||1200||3000||6000||9000||12000||15000|
The registration process for Shop & Establishment license in the state of Delhi:
Step 1: Got to link http://220.127.116.11/
Step 2: Click on Online Registration.
Step 3: After, you click on Online Registration, then enter the details such as:
Step 4: Click on continue and submit the form.
Step 5: Enter the following details
Step 6: Click on Register and Submit the form with applicable fees.
Step 7: The inspector shall verify the accuracy and correctness of the application.
Step 8: After being satisfied with the information available, the Inspector shall issue the Registration Certificate.
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