Each state has its own Shop and Establishment Act, although the general provisions are similar across the board. All stores and business establishments in the state are governed by the Act. The Labor Departments of the various states are in charge of regulating it.
Under the Act, shops are defined as places where items are sold to clients, either retail or wholesale, or where services are provided to them. It encompasses offices, godowns, storerooms, and warehouses that are used in the course of a trade or business.
A hotel, boarding or eating house, restaurant, cafe, theatre, or other public entertainment or amusement facilities are all considered commercial establishments. Factories and industries, on the other hand, are exempt from the Act and are governed by the Factories Act of 1948 and the Industries (Development and Regulation) Act of 1951.
The stores and commercial establishments covered by the act must apply for registration under the applicable state law. A Shop and Establishment Registration Certificate or Shop License is required for all establishments and enterprises, including persons who work and run a business from home. This License is also essential for entrepreneurs who operate a business without a physical store or venue.
The Certificate or Shop License serves as the business's basic registration/license. It's used to get a variety of different company permits and registrations. Most banks will require this Certificate in order to create a current account. When a business owner seeks to take a loan, the Certificate proves useful.
The following documents are necessary to get a certificate of registration for a store or establishment:
The Act controls, among other things, the following:
From state to state, the process for acquiring a Shop and Establishment Registration Certificate varies. The proprietor or owner of the store or business must log into the respective State Labour Department website in order to receive the registration certificate online. The fees that must be paid differ from state to state. The registered certificate will be issued to the proprietor of the business once the registration form has been approved.
After being satisfied with the accuracy of the application, the Chief Inspector will issue the registration certificate to the owner or proprietor of the premises. The registration application must be completed and submitted, along with the required fees, to the Chief Inspector of the concerned area.
The name of the employer and establishment, the address and category of the establishment, the number of employees, and other essential information are all included in the registration application form. The duration of the Shop and Establishment Certificate varies by state. Some states issue certificates that are valid for life, whereas others issue certificates that are good for one to five years.
Please fill this form to start your Business Journey with us