The Shop and Establishment Act regulates markets in India, encompassing stores, restaurants, cafes, and other establishments. It is required to register your business under the Shop and Establishments Act in order to control the work environment and ensure that workers' rights are respected.Although, the rules and regulations differ from state to state, with the act aiming to provide adequate working conditions for laborer as well as protecting their vacations, pay, and rights.
The license is provided to businesses, trades, and professions that are registered under the Shop and Establishment Act. The Shops and Establishments Act ensures that workers in both the organized and unorganized sectors have adequate working conditions. An establishment (applicant) must submit an online application to his state's official portal.
BENEFITS OF OBTAINING SHOP AND ESTABLISHMENT LICENSE
- Legal Recognition- The Shops and Establishment license gives the specific establishment/shop legal status.
- It is a Business proof-The Shops and Establishment license serves as proof of business for additional business registrations in India.
- Advantageous in Other Formalities-Creating a bank account in the name of the establishment/shop necessitates the registration of shops and establishments.
- New platform for new investments- The Shops and Establishment license assists the prospective entrepreneur in obtaining funding for their new firm through loans or venture capital.
- Government Benefits-The businessman can profit from government perks at various stages of their business by obtaining a shop and establishment license.
- Time is Money-Because the shop act registration process is now done online, it saves time during the registration process and makes things less hectic when the business is open for business.
- Wholesalers or the retailer's shops and establishments
- Service Centres
- Warehouses, Storerooms, and Godowns
- Additionally, any other working places
- Eateries and restaurants
- Entertainment houses, Amusement parks, Theatres, etc.
DOCUMENTS 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.
SOME OTHER DOCUMENTS ACCORDINGLY
- 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 partners along with their signature and share percentage of partners.
PENALITIES FOR SHOP AND ESTABLISHMENT ACT
Under the Act, it is mandatory for the entire establishment to get Shop and Establishment registration and to follow all of the Act's laws and regulations.The institution, on the other hand, would be obliged to pay the fine if it failed to register and obey the Act's rules and regulations. The punishment sum would differ from state to state.