SHOPS AND ESTABLISHMENTS ACT LICENSE

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Nov 4, 2019
3 min read

Shops and Establishments Act License in India have been enacted by the states to regulate conditions of work. Additionally, it provides the statutory obligations of the employers and right of the employees in the unorganized sector of employment. Every shop and the establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.

Which Businesses Come Under Shops and Establishments Act License

The Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any trade, business or profession is carried out. The act regulates the working of commercial establishments. The list includes societies, charitable trusts, printing establishments and educational institutions run for the gain. Additionally, it includes the premises of banking, insurance, stock or share brokerage. The Shop and Establishment Act in India is promulgated by the state and may slightly differ from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.

A commercial or trading or banking or insurance establishment, or
An establishment or administrative service in which persons employed or mainly engaged in office work, or
A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house or
A theater, cinema or any other place of public amusement or entertainment.
A shop where goods are sold, either by retail, wholesale, or where services are rendered to customers. It includes an office a store-room, godown, warehouse or workplace, whether in the same premises or otherwise, used in connection with such trade/ business.

Regulations Under Shops and Establishments Act License

This act lays down the following rules:

Working hours per day and week.
Guidelines for spread-over, rest interval, opening, and closing hours closed days, national and religious holidays, overtime work.
Rules for employment of children, young persons, and women.
Rules for annual leave, maternity leave, sickness, and casual leave, etc.
Maintenance of registers and records and display of notices.
Rules for employment and termination of service.
Obligations of employers as well as employees.
Cleanliness, lighting, and ventilation
Precautions against fire
Accidents
Record keeping

How to Apply for Shops and Establishments Act License Registration

Every business owner of any shops and establishments are compulsorily required to get the registration under the Shops and Establishment Act. Here are the following steps:

Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. Additionally, you need to submit the application along with the prescribed fees. However, it must contain the following information:

Your name as the employer and the name of a manager, if any;
The postal address of your establishment;
The name of your establishment;
Telephone No
eMail Address
Nature of Business

Date of Commencement of Business

After receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate is valid for 5 years. And you need to renew the thereafter. After getting the certificate, you will need to display that at your premise.

If you want to close down your establishment, within 15 days of closing the establishment, notify to the Inspector in writing the date of such closure and return the registration certificate. After due verification, the Inspector shall remove the name of your establishment from the Register of Establishments and cancel your registration certificate.

Shops and Establishments Act License Fees Structure

Number Of Employees (Nil) ------- Fees in INR (250)
Number Of Employees (1 to 9) ------- Fees in INR (500)
Number Of Employees (10 to 19) ------- Fees in INR (3000)
Number Of Employees (20 to 49) ------- Fees in INR (8000)
Number Of Employees (50 to 99) ------- Fees in INR (15000)
Number Of Employees (100 to 250) ------- Fees in INR (30000)
Number Of Employees (251 to 500) ------- Fees in INR (35000)
Number Of Employees (501 to 1000) ------- Fees in INR (45000)
Number Of Employees (Above 1000) ------- Fees in INR (50000)

This is a sample fees chart applicable in Bangalore. The rules under Shops and Establishments Act License vary for the different states. It is recommended to check the details with your state’s specific officer.