Registration under Shop & Establishment Act

Every state has its own Shop & Establishment act, but the basic principals and requirements of the acts are more or less similar. Department of labour of the states regulates the shop & establishment act.

The act was introduced to bring significant reforms for the employment conditions of the workers related to time of working, overtime, leaves, holidays, health & safety and overall welfare.

The main function of the act is advising the employers and the workers towards a better compliance of the act and the inspection of the Establishments. Inspection of establishment can be done by the labour department at any reasonable time to see whether the operations are as per the defined law

What are the Key Features of Shop & Establishment Act?

Some of the main features of this act is to regulate:

1. Unorganized working conditions.
2. Working hours, holidays and leaves.
3. Wages and compensation.
4. Women and child employment.
5. Terms of service.
6. Cleanliness, lighting, ventilation at workplace
7. Precaution for fire emergencies.
8. Unethical business practices.

To whom this Act applies?

This act shall apply to:

1. All shops.
2. Any commercial sector such as banking, trading, stock exchanges and insurance establishments.
3. Societies and trusts.
4. Educational institutes.
5. Hotels, cafes, eateries, restaurants and other similar establishments.
6. Theaters, cinemas and amusement parks.
7. All other establishments where individuals are employed for any office work or providing any services.

When to Register Under Shop & Establishment Act?

If someone is starting any commercial establishment or shop, he needs to file any application of registration within 30 days of commencement.

What are the Benefits of Registration?

There are many benefits to register under shop and establishment act and it is required at many levels to obtain other registrations and certification. Following are some of the benefits:

• It acts as a proof of legal identity of the business and serve as a right of doing business.
• Helps in opening the current bank account of the shop or establishments.
• Only one time fee and no compliance costs after that.
• It helps in facilitating smooth inspections by the government officials and helps in compliance with local law and regulations.
• Helps in easy availment of government schemes for small shops and establishments.
• Increase entity’s social and market standing.
• Online and hassle-free registration.

How to Register under Shop & Establishment act?

There are certain documents required for registration under shop & establishment act which should be kept ready before applying.

• Photo of shop or establishment
• Certificate of incorporation i.e., MOA, AOA, Partnership Deed, LLP Deed etc. as applicable
• Copy of PAN Card
• Proof of address of establishment
• Address proof of Individual, Partners, company or LLP as applicable
• Identity proof of Individual, Partners or directors as applicable
• Details of all the employees

Apart from the above details, the labour department may ask for any additional details to be provided.

Only on the satisfaction of the labour department official in charge, the registration will be successful and the registration certificate will be granted to the applicant. The certificate must be displayed prominently in the shop or establishment and should be timely renewed as per the applicable state law.