Shop Act Registration
Starting from ₹500 + GST
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Table Of Content
What is Shop Act Registration
The Shop and Establishment Act is regulated by the Department of Labor. It applies to premises where goods are sold, or services are provided to customers. It gives you legal permission to run a shop in the country and is a basic requirement for legalization. The Shop Act was introduced to protect the rights of employees, create a healthy working environment, regulate employee wages and working hours, convert it from unorganized into an organized sector, safety measures, compensation, dismissals, ban on child labor, and so on.
The Shop Act registration is mandatory for all shops — retail and wholesale, warehouses, storerooms, theaters, restaurants, hotels, spaces for public entertainment, and every location in the country that deals with the sale of goods and services. It is an important step toward starting your business, and the registration can be done under your State’s Labor Department. Since it comes under state legislation, each state in India has its rules and regulations that all shops and establishments must follow. All businesses or establishments must get the Shop and Establishment Registration Certificate or Shop License to continue their daily operations.
Benefits of Shop Act Registration
Eligibility for Shop Act Registration
Process for Shop Act Registration
Step 1
As the proprietor of the shop or establishment, you can visit the State Labor Department website of the particular state where your business operates. It is necessary to find the website relevant to your state to complete the registration process for your shop or establishment license within a few days from the opening date.
Step 2
Create an account on the respective State Labor Department’s official website to register your shop or establishment. Provide basic details such as name, email, phone number, etc., which is required to sign up for an account with the password to log in the next time.
Step 3
Search for the application form for Shop and Establishments Act registrations and fill the form with the necessary details. You need to include details such as the name and type of business, registered address of the physical shop or establishment, number of employees, PAN card details of the employer, and so on.
Step 4
After filling out the form, you can upload the relevant documents required to proceed with the Shop Act registration. Some documents include the PAN card of the individual, date of commencement, address proof of the individual and establishment, ownership document, rental agreement, bank account details, employee details, and so on.
Step 5
Once all the relevant documents have been uploaded, you can pay the registration fees to complete the submission of the application form. The registration you need to pay for the process varies based on the state your shop is located in. You will receive the receipt and confirmation for the fee payment.
Step 6
After submitting the application form for the Shop Act License registration, you need to wait for a few days or weeks for the government to review the documents and approve them. Once the application is approved, you will receive a Shop and Establishments Act Certificate, which must be displayed on the premises of your shop or establishment.
Documents Required for Shop Act Registration
Frequently Asked Questions
What is the purpose of the Shop Act registration?
The Shop Act is necessary for businesses to operate in the country. It is a law that governs safety standards, employee welfare, working conditions, etc., to ensure seamless business operations within the legal framework.
What are a few aspects covered by the Shop Act?
Some aspects covered by the Shop Act include working hours, leaves, holidays, hours of closing and opening for business operations, rest during work hours, inspections to meet compliance requirements, employee records, etc.
How long is the Shop and Establishment Certificate valid for?
The validity of the Shop and Establishment Certificate can differ from one state to another. The validity period of the certificate entirely depends on the regulations of the particular state in India where the business operates, after which you must renew it.
Do factories have to be registered under the Shop Act?
No, factories come under the regulation of the Factories Act of 1948. Thus, if you own a factory, you will not be required to register under the Shop and Establishment Act for business operations.
What happens if a business fails to register under the Shop Act?
Businesses can face fines, penalties, charges, or even closure of operations for not registering under the Shop Act of their respective state.
Do banks ask for a Shop Act certificate for your shop?
Most banks will ask you to submit the Shop Act certificate as legal identity proof to open a current bank account and to obtain loans from the bank.
What employee records must be maintained?
As a proprietor, you must maintain records of employee wages, working hours, attendance, leaves, and other details.