Shops and Establishment License

The Shop and Establishment Act registration controls various terms of employment such as payment of wages, work hours, the interval for rest, meals, holidays, leave, and other situations of work of individuals working in various establishments. This registration is necessary for each business place of work excluding those who already come under the Factories Act 1948.

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Overview of Shops and Establishment License

Advantages of Shops and Establishment License

Legal Entity	It acts as a legal entity proof of Shops and other commercial establishments which gives a right for doing business in that particular area
Business Bank account	It act as proof of legal entity proof for opening a current bank account
Smooth inspection	As state government and local municipality carry out periodic inspection visits for monitoring the proper operation of shop and establishment along with license as well
Compliance	Shop and Establishment Registration Certificate does not require any compliance. One-time
Online Registration	Online Registration under Shop and Establishment makes whole process hassle-free and time-efficient

Registration Process of Shops and Establishment License

Step 1: Login to the 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.

Step 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.

Step 3: Fill in all the Required Details

Name of the Proposed Shop and Establishment

The Name and Details of the concerned employer

Name and Details of all the Employees working at that time

Address proof of the Registered Establishment together with the NOC (No-Objection Certificate) or the Rent Agreement.

Step 4: Uploading documents

Upload required Documents online after fill up the form. In some states, documents along with Printout of the application form needs to submitted physically.

Step 5: Inspection

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.

Step 6: 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)

Documents Required of Shops and Establishment License

Aadhar Card / Voter ID/ Driving License
Photo of Shop with owner
Rent Agreement (Electricity bill if rented)
Shop or Business Address Proof
PAN Card
Payment Challan

Additional Business licenses necessary to start a business(Certificate of Incorporation (COI), Memorandum of Association(MOA), Articles of Association(AOA), Limited Liability Agreement(LLP)

FAQ's on Shops and Establishment License

What is the main objective of Shops & Establishment Act?

When is a Shops and Establishment License required?

What are the applicability of fees for registration under Shop and Establishment Act?

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