Shop and Establishment Registration

Starting at Rs. 2999/- onwards + GST

  • Home
  • Shop and Establishment Registration

Shop and Establishment Registration

The Shop and Establishment Act is different in each state. The general provisions of the Act, however, are the same in every state. The Labor Departments of the several states are in charge of enforcing the Shop and Establishment Act. All stores and business establishments in the state are governed by this Act. The registrations are issued by the individual states under the Act, and so they differ slightly from one state to the next.

Under the Act, shops are defined as premises where goods are sold, either retail or wholesale, or where clients are served. It includes places like offices, godowns, storerooms, and warehouses that are used for trade or business.

Any business, banking, trade, or insurance establishment or administrative agency in which individuals are engaged for office work is classified as a commercial establishment. It can be a hotel, boarding or dining house, restaurant, cafe, theatre, or other public amusement or entertainment establishment. The Act does not apply to factories or industries, which are governed by the Factories Act of 1948 and the Industries (Development and Regulation) Act of 1951.



KEY POINTS

  • The Shop and Establishment Act is governed by state-specific rules and regulations.
  • In order to obtain a Shop and Establishment Act License in their respective states, shops or commercial establishments must submit an application to the Chief Inspector.
  • Within thirty days of opening a business, every shop and establishment in India must register under the Shop and Establishment Act.
  • The registration certificate must be displayed in the store or business establishment and must be renewed on a regular basis as and when required.

WHY FSSAI IS REQUIRED?


The Act requires shops and commercial establishments to apply for registration under the applicable state law. Under the Act, all establishments and businesses, including those operating out of their homes, must obtain a Shop and Establishment Registration Certificate or Shop License ("Certificate").

This certificate is also required for privileged owners who operate a business from their home without having a physical storefront or premises. E-commerce firms, online businesses, online stores and establishments must register and receive a certificate under this Act. Within 30 days of opening for business, every store and commercial enterprise should register under the Act.

The Certificate or Shop License serves as the business's basic registration/license. This Certificate can be used to apply for a number of business permits and registrations. It acts as proof of the formation of a commercial establishment or shop. It's also useful when the business owner wishes to get a loan or open a current bank account for the company. Most banks will require this Certificate in order to create a current account.


ADVANTAGES


  • Recognition by the Law: Shop registration establishes a legal body, granting you the authority to conduct business. The Shops and Establishments license gives the establishment or shop a legal status.
  • Opening a bank account: Businesses that register under this Act can easily open a bank account without having to provide any additional documentation, as a Shop Act license is sufficient. A personal account allows you to create a distinct financial account for your business, which helps you avoid mucking up your business transactions.
  • Benefits from the government: If you obtain a shop act registration, you will be able to conveniently access government benefits. The government of India constantly comes out with attractive programmes and incentives to promote and encourage small stores and commercial enterprises, which can only be taken advantage of if you have a shop and establishment act license. In addition, there are low-interest bank loans, financial plans, and schemes available to enterprises that are registered under the shop and establishment legislation.
  • Legal Right of Conducting Business: The business owner obtains the legal right to conduct business under the Act's authority by obtaining a Shop and Establishment License and providing proof of business, such as a partnership or proprietorship. He/she cannot be bothered by law enforcement officials.
  • Fair Inspection: Inspections and checks are allowed by local municipality authorities and other statutory entities such as FCCAI. If you don't have a shop and establishment license, such audits and inspections can quickly escalate into a major problem, forcing your business to close. The best course of action is to obtain a shop license and conduct your business legally.

ADVANTAGES


  • Proprietor/ Director’s photo.
  • Identity proof of the proprietor/director/ authorized signatory (PAN Card/ AADHAAR Card/ Driving License/ Voter ID).
  • Address proof of shop/ establishment with rental or lease agreement or ownership proof.
  • Authorization letter from authorized signatory/ self-attestation letter of owner.
  • Duly filled Registration Form signed by owner/ authorized signatory.
  • Challan/ Payment Receipt/ Transaction Receipt.
  • Statutory documents (Trade License/ Partnership Deed/ Incorporation Certificate [COI]/ Memorandum of Business [MOA & AOA]).
  • Documents may vary from state to state.

Timelines


It takes 7 to 10 working days.

FAQs


  • What is the validity of shop and establishment registrations?

    The registration certificate is valid for five years. Before the period ends, a renewal application must be submitted for the next period.

  • Who is required to have a shop and establishment registration?

    Every shop and commercial establishment is required to register, regardless of their size, constitution, etc.

  • How much time does it take to obtain the registration?

    Shop and establishment registration can be registered under Shops Act within 15 to 20 working days from the date of filing the application but subject to department approval.

  • Is there any registration to be done for each branch/each location of the entity?

    There is a separate registration for each location or branch.

  • What is the meaning of commercial establishment?

    A commercial establishment, according to the Shop and Establishments Act, is a place where any trade, profession, business, or job relating to any of these is carried out.

Address :

T-10, 3rd Floor, Pankaj Plaza, PLOT-7, Pocket 7, Sector 12, Dwarka, New Delhi, Delhi 110075

Phone Number :

011-41734240, 9999704687

Email :

info@vyaapaarsalahkaar.com