SHOP AND ESTABLISHMENT REGISTRATION

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SHOP ACT INTRODUCTION

The  Shop and Establishment Act  regulates the shops and commercial establishments operating within the state. Every state has its own Shop and Establishment Act (“Act”). However, the general provisions of the Act are the same in all states. The Labour Department of the respective states implements the Shop and Establishment Act. 

Shops are generally defined under the Act as the premises where the selling of goods take place either by retail or wholesale or where services are rendered to customers. It includes offices, godowns, storerooms and warehouses used in connection with the trade or business. 

Commercial establishments are generally defined as a commercial, banking, trading or insurance establishment or administrative service in which persons are employed for office work. It includes a hotel, boarding or eating house, restaurant, cafe, theatre, or other public entertainment or amusement places. However, factories and industries are not covered by the Act and are regulated by the Factories Act, 1948 and Industries (Development and Regulation) Act 1951.

ADVANTAGES OF SHOP AND ESTABLISHMENT REGISTRATION

· Hours of work, annual leave, weekly holidays.

· Payment of wages and compensation.

· Prohibition of employment of children.

· Prohibition of employing women and young persons in the night shift.

· Enforcement and Inspection.

· Interval for rest.

· Opening and closing hours.

· Record keeping by the employers.

· Dismissal provisions.

PROCESS

The procedure for obtaining the Shop and Establishment Registration Certificate differs from state to state. It can be obtained online or offline. 

For obtaining the registration certificate online, the proprietor or owner of the shop or business must log into the respective State Labour Department website. The proprietor or owner must fill the application form for the registration under the Shop and Establishment Act, upload the documents and pay the prescribed fees. The prescribed fees differ from state to state. Once the registration form is approved, the registration certificate will be issued online to the proprietor or owner of the business.

For obtaining the registration certificate offline, the registration application is to be filled and submitted to the Chief Inspector of the concerned area along with the prescribed fees. The Chief Inspector will issue the registration certificate to the owner or proprietor after being satisfied with the correctness of the application. 

The registration application form contains the details relating to the name of the employer and establishment, address and category of the establishment, number of employees and other relevant details as required.  

DOCUMENTS REQUIRED FOR SHOP ACT REGISTRATION

he documents required for obtaining the shop and establishment registration certificate is-

· Shop or Business establishment address proof.

· ID proof of the proprietor.

· PAN Card of the proprietor.

· Details of the employees.

·  Payment  challan.

·  Additional business licenses necessary for starting the business, if any.

VALIDITY OF SHOP AND ESTABLISHMENT REGISTRATION

The validity and fees of the Shop and Establishment Certificate differs from state to state. Some states provide the Certificate valid for a lifetime, while other states provide the Certificate valid for one to five years. The registration application needs to be renewed before the expiry of the period of registration.