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Shop and Establishment Registration

India Financial has set a benchmark for fastest delivery of Shop and Establishment Registration
Package Inclusions

  • Discussion of Business Operations and Activities
  • Shop and establishment Act Registration
  • Registration Certificate of Goods and Services Tax (GST) and Micro, Small and Medium Enterprises (MSME) and other related and relevant registration
  • Annual Income Tax Returns
  • Planning of Accounting and Business

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What do you mean by registration of Shop and Establishment Act?

The Shop and Establishment Act registration regulates the organized and unorganized sectors in India and the performance of activities of enterprises are checked by them at their work place. Each and every Shop, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments houses come under this act. This act lists out certain rights and duties of employees and each and every employer is required to comply with the obligations which are imposed under this act. Procedure to register under the shop and establishment registration differs from state to state as it is a state act. By filing an application online on the state official sites, one can take registration under the shop and establishment act.

Aim of Registration of Shop and Establishment Act

  1. In order to secure the uniform benefits of the employees employed in different establishments such as Shop, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment and to ensure the working of employees in an organized manner The aim of the Shop and Establishment registration is to set the proper standard of employees and regulate the day-to-day performance of employees.

What are the rules and regulations to comply with under Shop and Establishment Act in India?

There are many important aspects of Shop and establishment which are mentioned below:

  • It sets out the time regarding how much time can be worked on a stretcher day and week,
  • It issues the guidelines for spread-over, rest interval to be taken by the employee, opening and closing hours of the business, closed days of the establishments etc.
  • It announces the national and religious holidays of the establishments.
  • It monitors the activities performed by the employees, restricts the employment of children in the establishments, and sets rules regarding the employment of young persons and women.
  • It also sets the rules for annual leave, maternity leave procedure are also issued by the shop and establishments act.
  • It also frames rules regarding the sickness and casual leave, rules for employment and termination of service in the industry.
  • The ways or methods to be followed in order to maintain the registers and record are also guided by this act and display of notices, rights, rules and obligations of employers as well as employees.
  • Service terms and other work conditions employees employed in Shop and commercial establishments are set by the Shop and Establishment Act.

What are the services offered by the India Financial for registration under Shop and Establishment in India?

Our services

  • Registration under the Shop and establishment act.
  • Renewal of registration under the Shop and establishment act,
  • GST (Goods and Services Tax) registration,
  • MSME (Micro, Small and Medium Enterprises) registration,
  • Templates and set of all legal documents which are required by startups.
  • Notification on whatever developments and changes have been introduced by respective states on timely basis.
  • Legal and Compliance assistance, Compliance calendar which are applicable to your establishment and many more things are offered by us.

Fees for Shop and Establishment Registration

Package 1

Shop and establishment registration

Rs. 5999 +Government Fees+ GST (Goods and Services Tax)

Package 2

Shop ad establishment registration+ GST (Goods and Services Tax) registration + MSME (Micro, Small and Medium Enterprises) registration+ Consultant in opening of current account + Trademark registration in one class

Rs. 19999 + Government Fees + GST (Goods and Services Tax)

What are the documents needed for registration under Shop and Establishment?

The following documents are required to provide in order to obtain registration under this Act:

  • Identity proof: The Permanent Account Number card (The PAN shall be of the owner of business or the business itself),
  • Address proof: A copy of the rental agreement in case the property is on rentor sale deed, and
  • Details of all the employees if any.

Is it necessary to obtain License under the Shop and Establishment?

  • Firstly you need to check whether the category of the shop and commercial establishment defined under the Shop and Establishments Act is applicable to the business that you are going to establish or not.
  • For treatment of the employees, you need to comply with the norms and regulations set by the Act, if the answer to above question is yes.
  • Every establishment is required to abide with the rules and regulations made under the Shop and Establishment Acts. However, procedure to register under the Shop and Establishments Act varies from state to state.
  • After fulfilling the above conditions, you are required to file for registration under this Act, within 30 days from the commencement of your establishment.

What are the advantages of obtaining registration under Shop and Establishment Act?

Advantages of Shop and Establishment License are as follows:

  • Legal recognition is given by this Act.
  • It is basically a basic license.
  • This license acts as a proof for obtaining registration under other businesses.
  • Registration under Shop and Establishment Act is compulsory for several reasons such as opening of a current account with the bank.
  • Requirement of such license will be needed in case you want to raise investments through loans from the bank or from venture capitals.

How to get registration under Shop and Establishment through Online mode?

Step1: The state in which you want to register your establishment, from that state’s official website, you are required to download the application in the prescribed format.

Step2: In the next step, you need to fill the downloaded application form with the below mentioned details:

  • Establishment Name
  • At the time of incorporating the business, employer as well as employee’s name and details are required to be filled along with the address of the establishment and a copy of sale deed or rental agreement for the shop in case the shop is on rent.
  • Owner or the business’s Permanent Account Number (PAN).

Step3: Filled application along with the prescribed fees shall be submitted to the inspector – in charge or Chief Inspector of Shop and Establishment Act, or to other inspectors authorized to work for the area in which you want to run your establishment.

Step4: Chief Inspector of Shop and Establishment Act, or from other inspectors authorized to work for the area in which you want to run your establishment shall issue the registration certificate if no error has been noticed after scrutinizing the application form by the inspector.

How long it will take to obtain registration under the Shop and Establishment Act in India?

It takes around 15 to 20 working days to get registration under Shop and Establishment Act in major cities along with the physical verification of documents. However, the time duration varies state to state depending upon the state in which you have the establishment of the business.

What are the procedures to be followed after the registration of Shop and Establishment Act?

  • You may be required to visit at the inspector place, if necessary.
  • The registration Certificate so obtained needs to be displayed at the visible place in the shop.
  • Where any changes have been made with respect to the number of employees’ whether addition or termination or upon the expiry of employees, renewal must be done.
  • Where any changes have been made regarding the details or the closure of establishment unit or in factories, the same has to be informed within 15 days from the date of making such changes to the inspector.
  • The basic procedure of registration is the same even each state has framed the different rules and regulations for the registration.
  • Obtaining approval from the Department of Labour is also compulsory under the Shop and establishment act in the state in which the establishment is set up.

Inspection Procedure under the Shop and Establishment Act

  • Establishments locating and identifying
  • Inspection by Joint Team
  • Report of Inspection done by the team.
  • Notice of Non-Compliance to be sent if any
  • Final Action to be taken

Procedure of Inspection to be followed by the inspector under the Shop and Establishment Act is mentioned below:

Step1: Location of establishment shall be allocated by the inspector after receiving the application form. For locating the establishment, random computerized risk assessment method is used.

Step2: The Joint Team inspects the establishment place which is located by the authority. The inspecting team consists of minimum 2 inspectors along with the following officers, Assistant Labor Commissioner, Labor Enforcement Officer, and Assistant Director Factory according to their availability. Constitution of the Inspection team also depends upon the state law.

Step3: Within 48 hours, inspection report final by the inspection team is required to be submitted and it is also uploaded / submitted along with the unique number on the portal of the department by the inspecting team.

Note: In order to view and / or download the inspection report from their web portal account of the department, unique number will be used only by the users such as establishments, factories or units.

Step4: Departments may issue non – compliance notice to units, factories or establishments on any defects, deviations or any other non - compliance noticed by the departments through inspection.

Note: All the necessary compliance must be fulfilled by the establishment within 15 days and it is also required to inform the Labour Department regarding the same after uploading the compliance report on the portal of the department.

Step5: Final Action shall be taken by the inspection team on either acceptance of compliance report and issue of go-ahead note or on initiation of proceedings where any discrepancies are noticed.

In order to visit inspector’s office what preparation under the Shop and Establishment Act Registration are required:

With the following details and documents, be ready:

  • Registration certificate of establishment under the Shop and Establishment Act may be required by the inspector.
  • Registers, records, documents required to be maintained shall be checked by the inspector
  • Confirmation regarding whether the employees have been given weekly and public holidays or not.
  • Confirmation regarding whether the employees have been paid wages within the stipulated time as specified under the act or not.
  • Whether women employees have been given maternity or not.
  • The inspector will ensure that no illegal deduction has been made.
  • He will look into the matter of any wrong termination of an employee which is violating the prescribed provision and procedure under the Act.
  • Scrutiny will be carried out on whether children/women are employed against the provisions of the Act.

What is the procedure of renewal under the shop and establishment Act?

Before the expiry of the license, renewal must be completed. A legal consultant can be hired in this regard, who has the knowledge of state laws.

The steps to be followed for renewal are mentioned below:

  • For the Shop and establishment act, go to individual state site and log in there.
  • You are required to enter user Id and password, which is either received or created at the time of registration under the Act.
  • You are required to select the registering procedure in the capacity of individual or an organization.
  • In the application form you need to fill details and then submit it.
  • In the next step select the option of renewal of your license.
  • All your documents mentioned below are required to be re uploaded:
    • Partners/Directors/Proprietor’s Permanent Account Number Card
    • Copy of Rental agreement/Sale deed of commercial space where the business activities are being performed.
    • Details of Number of employees employed
    • Establishment Name
    • Registers maintained till date.
    • Copy of Voter’s Identity Card/Passport/Driver’s License
    • Passport-sized photograph
  • After re uploading all the necessary documents as mentioned above you are now required to make payment of fees which may differ from state to state.
  • Now you need to keep a track of the procedure until the status changes to ‘Completed’: The status shall appear as ‘Under Scrutiny’, after submission and you should keep on checking the status until it turns completed.
  • At last and after the completion of procedure, you can ‘Download the Certificate’ from the site.

Note: - As the state governs registration of Shop and establishment, therefore, procedure may vary in every state.

What requirements are to be fulfilled for registration under shop and establishment act?

  • Registration certificate under the shop and establishment act is to be obtained.
  • Need to Comply with rule made under Goods and Services Tax (GST) for your business.
  • For filing of GST Returns monthly / Quarterly, Subscribe India Financial Services.
  • It will be good to avail benefits by registering under Micro, small and medium (MSME) enterprise.
  • India Financial expert team will help you in planning your business income.
  • Set of legal documents, letters formats, will also be applicable to a new set up.

Frequently Asked Questions about Shop and Establishment Registration

Every business is required to maintain the following records, Under the Shop and Establishment Act,

  • Registration details regarding employment
  • Any fines imposed along with reason for such fine imposition,
  • Any deductions from salary
  • Advances issued, if any,
  • Details of Salary,
  • Holidays awarded.

Note that the above requirements differ state to state.

The 'Commercial Establishment' is defined in the act as:

  • Commercial sector, such as banking, trading or insurance establishments or any other commercial establishments.
  • Any establishment where office work or service providing work is done by the individuals
  • The hotels, restaurants and other eateries and boarding houses or a small café or refreshment house.
  • Theatres and Cinema halls or amusement parks or any other Amusement and entertainment places.

Yes, before starting the business, every businessman is required to obtain approval from the Department of Labor under the Shop and Establishment Act.

The office of the Municipal Corporation requires files mentioning annual holidays and number of employees employed on annual basis.

Within 30 days of commencement of business, every business is required get itself registered under Shop and Establishment Act in order to obtain proof of a commercial business, as this acts as a basic license. For example, in order to open current account, most banks will require you to obtain registration.

The Bihar Shop and Establishments Act, 1953 governs the Shop and establishment registration in Bihar.

Here are the steps to be followed:

Step1: From Bihar’s official websites, download the application in the prescribed format.

Step 2: Following options will be there:

1. Application for Registration
2. Application for Amendment of Certificate of Registration
3. Notice of Closure
4. Application for Digitization of Existing Shop and Establishment under Bihar Shop and Establishment Act.

Step3: In the third step you are required to fill the application for registration along with the below mentioned details:

1. The establishment name
2. Owner (employer) and the employees (at the time of incorporation of business) details such as name, address, contact number etc.
3. Establishment’s address and a copy of rent agreement for the shop, where the shop is on rent.
4. Business or the Owner’s Permanent Account Number.

Step4: In the next step, you are required to submit the application form filled by you along with the prescribed fees.

Step5: The application form shall be scrutinized by the authority and if all goes well the registration certificate shall be granted by The Chief Inspector of the Bihar Shop and Establishment Act issues the registration certificate if no errors are observed after scrutinizing the application form by the authority.

For such services, you can contact India Financial professional team, which delivers the services in no time and professionalism is maintained throughout the work. By posting a query, you can reach out to us and we will get in touch with you within a few hours.

If you hire India Financial, You will be benefited in the following ways:

  1. Completely in-house services by us.
  2. Expert eyes throughout the process of registration.
  3. Free legal advice related to any query.
  4. Free regular updates via mail by our team
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Thank you very much for all your help in setting up my new company and clearing up all outstanding business in my sole trader accounts. For the first time in years I have peace of mind regards my business accounts. Your workforce are a credit to you, the girls at reception are so helpful and Chris has been brilliant. It is very much appreciated.

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Delhi

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Delhi

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