Owners of shops or other commercial establishments in India that conduct business must apply for a Shop and Establishment License within 30 days of opening. You can apply for a Shop and Establishment Act License by filing an application in your respective state and it should include the name of the employer, the address of the establishment, the name of the establishment, the category of the establishment, and the number of employees.

After the application is submitted and reviewed by the Chief Inspector, a registration certificate will be issued to the owner of the shop or commercial establishment. Whenever a shop or business establishment displays the registration certificate, it has to renew it without any carelessness after the expiration date.

The occupier of the shop or establishment is required to notify the Chief Inspector in writing within 15 days of the closure if the shop or establishment decides to close. A Chief Inspector will review the request and then remove the shop or commercial establishment from the register. The registration certificate will then be revoked.

The Indian Shop and Establishment Act

It supervises and administers all establishments that carry on any trade, business, or profession under the authority of the Department of Labor. Aside from regulating the operation of commercial establishments, the act also regulates the activities of societies, charitable trusts, printing establishments, educational institutions, and other places where banking, insurance, stock, or share brokerage is conducted license for shop

There are several areas covered by this act, including working hours, rest intervals, opening and closing times, closed days, national and religious holidays, overtime work, child employment laws, annual leave, maternity, sickness, and casual leave. The registration certificate will only be valid for a period of 5 years after the start of the business under this act. Renewal is required after it expires.

As per the Act, shops and commercial establishments operating in every state are covered by their own Shop and Establishment Act.

According to the Act, the following types of establishments are subject to the Act:

  • Shops that sell goods in retail or wholesale.
  • Customers receive services from the premises.
  • A warehouse, a storeroom, or a godown.
  • Workplace of any kind.
  • Hotels for residents.
  • A restaurant or eating establishment.
  • A theater or any other place of public entertainment.

Shops and commercial establishments must submit the following documents:

  • ID card, Aadhar card, driving license, and voter registration card
  • Owner’s picture
  • Shop photo along with owner (just click with mobile phone)
  • Agreement of Rent, if Rented
  • Amount due on electricity

As a conclusion

A shop and establishment license in India is a basic license that is required at all stages of business registration and must be acquired by all businesses. It is required to display at all times while conducting business every day. If you want your business to succeed, you should obtain this license as soon as possible.

Frequently Asked Questions

Does shop and establishment registration have to be applied for?

There is a mandatory requirement for shops and establishments to be registered. 

The shop and establishment registration act defines an establishment as follows?

Specifically, the Act defines establishments like shops, commercial establishments, hotels, restaurants, places of public amusement, or any other establishment notified by the government. 

Do I need to apply for India establishment and shop registration within a certain number of days?

After starting a business in Delhi, one must obtain a shop and establishment certificate within 90 days.

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