Shop & Establishment License

Overview of Shop & Establishment License

Most of the businesses in India including shops, restaurants, cafes, etc.; are regulated under the provisions of the Shop and Establishment Act. To regulate the work environment and that the rights of the workers are being protected, it is mandatory to get your business registered under the Shop and establishments Act. However, the rules and regulations vary from state to state, in which the act aims at providing proper working conditions to the laborers and taking care of their holidays, wages, and rights. The License is issued to the following establishments:-

• Business,
• Trade
• Professions registered under the Shop and Establishment Act.
• The Shops and Establishment act makes sure that both organized and unorganized sectors are providing appropriate working conditions to the laborers. An applicant (Establishment) has to file an online application concerning to his state official portal.

What are the Aspects Regulated as per the Provisions of the Shop and Establishments Act?

The Shop and Establishment Act has made various provisions to regulate the aspects relating to the working of shops and establishment in India. Following are Some Key Aspects Regulated by Them:-

• Maximum working hours of the employees/ labors
• Time duration allotted for meals and rest
• Regulating laws to prohibit child labor in factories and other establishments
• Women employment
• Number of compulsory weekly holidays provided to the employees
• Close/off days of the establishments/shops
• Opening and closing hours of the establishments/shops
• Wages to employees for the holidays
• Accidents coverage policies
• Preventive measures against fire
• Proper ventilation and lighting for workers
• Clean and hygienic premises for the workers
• Conditions and timing for the payment
• Regulation of deductions on the payments
• Leave Policy
• Dismissal
• Employee’s proper record keeping

Note: More information related to the Shop and Establishment Act can be gathered on the relative state government portal.

What are the Benefits of Obtaining Shop and Establishment License?

• Legal Recognitionthe Shops and Establishment license provides legal recognition to the respective establishment/shop.
• Acts As A Business ProofFor further business registrations in India, the Shops and Establishment license acts as a business proof.
• Helpful In Opening The Bank Accounts And Other FormalitiesThe registration of Shops and Establishment becomes necessary for reasons like opening a bank account in the name of establishment/shop.
• Provides A Platform For Raising New InvestmentThe Shops and Establishment license helps the proposed entrepreneur in raising investments through loans or venture capitals for the proposed business establishment.
• Avails The Government BenefitsBy getting the shop and establishment license, the entrepreneur can avail the government benefits in different stage of business.
• Saves TimeAs the process of shop act registration has turned online, it saves time in the registration procedure as well as creates less hectic while in operation.

Who are Eligible to Obtain a Shop and Establishment License in India?

• Wholesalers or the retailer’s shops and establishments
• Service Centers
• Warehouses, Storerooms, and Godowns
• Additionally, any other working places
• Hotels
• Eateries and restaurants
• Entertainment houses, Amusement parks, Theaters, etc

What Documents are required for Obtaining the Shop and Establishment License?

Below-mentioned documents are required for Shop and Establishment License-

• Id proof such as Aadhar card/PAN card/ voter identification card/ driving license of the employer.
• Passport size photograph of the employer
• The Affidavit, Cancelled cheque, and Bank statement,
• A photo of the establishment/ shop along with the employer
• In the case of rented property, a copy of the rent agreement
• Any utility bill of the working premises.

Other Documents Required As Per The Establishment Or Business Entity

• In the case of a trust, a list of number of trustees
• Certificate of incorporation, MOA, and AOA as per the Companies Act,
• In the case of co-operative societies, a list of number of members and chairman
• Partnership deed with all the important information such as the name of the partnersalong with their signatureand share percentage of partners.

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