- June 18, 2021
- Posted by: monika malhotra
- Category: Uncategorized
SHOP AND ESTABLISHMENT REGISTRATION
The Shop and Establishment Registration is covered under the state laws of India. Each and every state has a different set of laws for Shop and establishment, and they are to be followed properly. The government of each and every state can create specific regulations and rules regarding the operations of shops and business establishments.
Within 30 days of commencement of work every shop and establishment is required to register itself compulsorily under Shop and Establishment Act. Many other licenses require this basic license as proof of a commercial business.
Following are the premises covered under this act except those who fall under Factories Act, 1948:-
Benefits of Shop and Establishment Registration:-
- Legally recognized identity proof:- As every business requires legal identity proof for running a business . It is a legal identity proof for running a business.
- Helpful in smooth inspections:- Shop license plays an important role in the inspection conducted by State Government and Local municipality as they conduct various inspections visit for checking proper working of shops and business along with the license as well.
- Various government Benefits:- As each state has departments that provide policies and various benefits for small business. On the basis of this certificate one can avail the government benefits.
- Proof for opening a business Bank Account:- Every Bank requires a legal identity proof to open a current bank account and as per RBI compliance each Shop and establishment is required to open a separate account for daily transactions.
Before proceeding for registration, you must be aware about what all are the documentation required, Records that required to be maintained. Let’s us understand it one by one.
Documents required for Shop and Establishment Registration:-
The labor inspector may ask for other affiliated information or documents apart from the above information,.
Enrollment Process Through SmartBizGuru:
Firstly Smart Biz Guru team will collect the above-said documents and information from you in respect of Shop and Establishment Registration and after vetting the documents will follow the below steps:-
Step 1:- We apply application on behalf of your organization with prescribed Fees to the Department.
Step 2:- We Represent on your behalf and visit the authorities for further process of application
Step 3:- If the labour inspector ask for additional documents then those additional documents are required to be submitted.
Step 4:- After Verification, Labor Inspector grant Shop and establishment Registration
|All the amendments to the Shop and Establishment registration must be intimated to the concerned officer within the prescribed stipulated time.|
|At the time of closure of the establishment, an intimation is required to be given by the the employer to the respective officer and apply for surrender of the registration.|
|Under this Act, every business has to take prior approval from the Department of Labour and registers must be kept up to date regarding details of employment, fines, deductions and advances, salary and holidays and all the necessary requirements may vary from state to state.|
|There are files the Municipal Corporations need to submit annually regarding holidays and employee numbers. These documents need not be filed as a regular return.|
|Except for those who fall under the Factory Act of 1948, registration is required by every business place of employment.|
|Every state has different site for obtaining the registration. For Example link for obtaining the registration in Delhi is Labour Delhi Government|
|The Inspector who is appointed can visit the registered premises for verification any time during the process.|
|The certificate of the Shop and Establishment Registration is required to displayed at a place easily accessible in the particular premises by the Owner of the business.|
|The License that is issued must be timely renewed prior to its expiry date.|
|In certain Business activities, despite of having the Shop and Establishment License, the owner of the proposed business is also required to obtain prior approval from the respective state Department for the commencing business activities in that state.|
Frequently Asked Question :-
- Is the Act applicable to the establishments of Central and State Government?
No, the establishments of Central and State Government are exempted from all the provisions of the Act.
Although Private Limited Company, One Person Company, Limited Liability Partnership and any kind of Business enterprises is required to take Shop and establishment Registration.
- Briefly state the premises type that are governed by the Act?
The premises governed under the Act are commercial establishments, shop, residential hotels, restaurants, clubs, eating houses, theatres and other places of public amusement or entertainment.
- Is it mandatory to obtain registration under shop and establishment act?
Yes, for every business, shop, and establishment needs to obtain registration under the Shop and Establishment Act within a period of 30 days from the date of commencement of operations.
- What is the validity period of Shop and Establishment License?
Usually a Shop and Establishment License remains valid for a period of one year, and the same is eligible to get renewed every year. Further, the rules and regulations regarding the issuance and renewal of licenses varies from one state to another.
- If in case a business does not have any employee, does it still requires to obtain registration under Shop and Establishment Act?
Yes, every Shop and Business irrespective of the number of employees working is required to obtain Shop and Establishment Registration under the Act. Further, any amendment prior of obtaining the registration is required to be intimated.
- Elaborate the comparision between establishment shop and Factory?
|An establishment comprises of hotels, restaurants, theatres, and other amusement parks||There are many ways to sell goods and provide services in a shop. For example:storerooms, offices, or warehouses.||It is a place that has been founded by a company mainly for manufacturing and producing goods that are sold by that company.|
|A factory is not always considered to be an establishment||–||A factory can be considered as an establishment.|
- Does one need to present physically for the registration precess?
No, as the entire license process is online based so there is no need for physical presence of a person.Only all the documents are required to be submitted on the required portal.
- What are the penalties imposed for not obtaining such license?
The penalties imposed vary from one state to another as per the regulation of the state.
In today’ s developing era , in India, most of the business, like Eateries, shops, , cafes, restaurants, etc., are governed and regulated by the provisions of the Shop and Establishment Act, and hence, it is compulsory for them to obtain Shop and Establishment License. However, it shall be kept in mind that it is regulated by State Act, and the rules and regulations vary from one state to another state. Further, this act aims to provide good working conditions to the laborers employed along with their wages, holidays, and many essential rights.
How to start a Shop and Establishment License:-
We SmartBizGuru also helps in various other Compliances along with the post compliance of the Company like appointment of Auditors, Preparing Financial of the Company, Filing of GST Returns and Other Returns to Govt Authority, ROC Compliances, Consultation on Digital Market solutions. You are just a call away to take our services. Connect us at 9599561517 for more information in detail.