Various employment conditions are covered under the Shops and Establishments Act, including wage payments, working hours, breaks, meals, holidays, and vacations.
All businesses must register, except those covered by the Factory Act of 1948.
Shops and establishment registration certificates are required for the application of other licenses. A current account for a business is usually required as proof of commerce by most banks. Within 30 days of starting a business, anyone seeking a commercial presence must register under the Act. In order to open a bank account for your business, you must register. In order to conduct business, a license is required under the Shops and Establishments Act.
Getting your shop and establishment registered has many benefits
1. Legal Evidence of Business
Certificates confirm that the institution, business, or organization is legally constituted in the area to which it is granting the right to operate.
- Commercial Bank Account
Verifiable checking accounts must meet certain documentary requirements to open. Companies and facilities must open separate bank accounts to conduct daily transactions, according to RBI standards. Your company or company registration certificate can be used by a commercial bank to open a checking account.
- No Compliance Costs
Compliance is currently not required after registration for companies and entities. The registration of shops and establishments is therefore mandatory.
- Smooth inspection
Whenever an inspector from the state or municipality inspects the store/facility to ensure its proper functioning and has a certificate of registration for the store/facility, it is required to be registered as usual. When the inspection is conducted in an open environment, it can be completed quickly.
- State Benefits
District Industries Centres (DICs) provide state-level decision-making for all small and medium-sized enterprises (SMEs). A certificate of registration provides easy access to a variety of government benefits for businesses and facilities.
- Online Settings
The registration process can be completed online at a store or branch, which makes it time-efficient and hassle-free.
Registering Shops & Establishments: Documents Required
States may have different procedures for registering documents. Online services are available in some states. State-by-state rules and regulations differ for shops and establishments since they are a state matter.
For each state, the following documents are almost mandatory:
- Any photo of the shop/establishment (offices, shops, buildings, etc.)
- An Incorporation Certificate, a Memorandum of Association (MOA) are required
Limited Liability Partnership Agreement (LLP) and Articles of Association (AOA)
- Copy of PAN Card
- List of Directors or Partners and Proof of Their Identity and Address
- Copy of Board Resolution or Partner Consent
- Proof of Corporate / LLP / Partnership / Ownership Address
- Proof of address(POA) of establishment
A further set of data and documents may also be requested by the officer, which must be submitted. Depending on how many workers are employed by that particular organization/business, the fee for the whole process varies.
Steps to Get a Shops and Establishments License
Shop and establishment licenses must be applied for in the prescribed manner and time by the owner of a shop or commercial establishment that has begun operations. The document must contain all the following information
- Employer’s name
- Facility address
- Organisation name
- Facility category
- Number of workers
The applicant must also provide other relevant information upon request.
An application will be reviewed by the chief inspector after it has been submitted. A registration certificate will be issued to the resident if the inspector finds no errors in the information during the inspection. The certificate must be prominently displayed in the store or facility, and it must be renewed on a regular basis.
Also read:
The Shop and Establishment Act of India