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Shops & Establishments Registration

Shops & Establishments Act:

Shops and Establishments Act was enacted to consolidate and amend the law relating to the regulation of conditions of work and employment in shops, commercial establishments and other establishments and for matters connected therewith.

What is Shop:

Shop means any premises where any trade or business is carried on or where services are rendered to customers and includes a shop run by a Co operative Society, an office, a store room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade or business and such other establishments as the Government may, by notification, declare to be a shop for the purposes of this Act, but does not include a commercial establishment.

What is Commercial Establishment:

Commercial establishment means an establishment which carries on any trade, business, profession or any work in connection with or incidental or ancilliary to any such trade, business or profession or which is a clerical department of a factory or an industrial undertaking or which is a commercial or trading or banking or insurance establishment and includes an establishment under the management and control of a co operative society, an establishment of a factory or an industrial undertaking which falls outside the scope of the Factories Act, 1948, (Central Act 63 of 1948), and such other establishment as the Government may, by notification declare to be a commercial establishment for the purposes of this Act but does not include a shop.

What is Establishment:

Establishment means a shop, restaurant, eating house, residential hotel, lodging house, theatre or any place of public amusement or entertainment and includes a commercial establishment and such other establishment as the Government may, by notification, declare to be an establishment for the purpose of this Act.

Applicability of the Act:

Every employer and owner of a shop & establishment whether it is Sole Proprietorship, Partnership Firm, LLP, Private Limited Company, Public Limited Company or any other business entity registered under any other law for the time being inforce shall apply for registration under Shops & Commercial Establishments Act within 30 days of commencement of business. The Shops & Commercial Establishments Act regulates hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments for public entertainment or amusement and other establishments. This registration is compulsory for every business place of work except those who falls under Factories Act 1948. It is a state regulation and each state has separate shops & establishment act.

Registration of Establishments:

  • Every employer of an establishment shall,
    (i) in the case of an establishment existing on the date of commencement of this Act, within thirty days from that date; and
    (ii) in the case of a new establishment, within thirty days from the date on which the establishment commences its work, send to the Inspector concerned a statement containing such particulars, together with such fees, as may be prescribed.

  • On receipt of such statement, the Inspector shall register the establishment in the register of establishments in such manner as may be prescribed and shall issue in the prescribed form a registration certificate to the employer who shall display it at a prominent place of the establishment.

  • Every registration certificate issued under sub section (2), shall be valid with effect from the date on which it is issued upto the 31st day of December following.

  • Every employer shall give intimation to the Inspector, in the prescribed form, any change in any of the particulars in the statement made under sub section (1) within fifteen days after the change has taken place. The Inspector shall, on receipt of such intimation and the fees prescribed therefor make the change in the register of establishments in accordance with such intimation and shall amend the registration certificate or issue a fresh registration certificate, if necessary.

  • The employer shall, within fifteen days of the closure of the establishment, give intimation thereof in writing to the Inspector, who shall, on receipt of such intimation, remove the name of the establishment from the register of establishments and cancel the registration certificate.

    Provided that, where the Inspector is satisfied otherwise than on receipt of such intimation, that the establishment has been closed, he shall remove the name of such establishment from the register and cancel the registration certificate.

Why Should I register under Shops and Establishments Act

Below are the main reasons to register under Shops and Establishments.

Legal Entity:

The shop or establishment registration certificate acts as a legal entity proof. It gives businesses the right to conduct work in a particular state.

Bank Account:

For a sole proprietorship business, this certificate is enough to show that it is a legal entity, with this certificate, a proprietor can open bank account and do business legally.

Government Benefits:

The Shop and Commercial Establishment Registration opens the gateway to government benefits for small businesses set up by the Department of Industries and Commerce.

The benefits under Micro, Small and Medium Enterprises Act are also available to Small Businesses.

Terms of Employments:

The Shops and Establishment Act registration controls various terms of employment such as payment of wages, work hours, the interval for rest, meals, holidays, leave, and other situations of work of individuals working in various establishments.

Low Cost:

You can register your proprietorship business with low cost in this department. Now most of the Indian sates made this online, you can register easily. No need to file any document or return with the department.

How to Register under Shops & Establishments Act

Any business entity (ie. Proprietorship or Partnership Firm or LLP or Company) which is subject to registration under Shops and Establishments Act may register it. You can find below the Documents required and Step by Step Registration Process.


Documents Required

  • A

    For Proprietorship Business

    1. Proprietor PAN, Aadhaar Card or Voter ID or Passport or Driver's License
    2. Latest passport size photograph
    3. Office Name Board both in English and Regional Language
    4. List of Employees and their designations if any
    5. Proprietor Mobile Number
    6. Proprietor Email id
    7. Registered Office Address Proof: Latest Power Bill
    8. No-objection letter cum Affidavit from the Landlord if it is owned.
    9. Rental Agreement from the landlord if the premises are rented.
  • B

    For Other Businesses

    1. Directors or Partners PAN, Aadhaar Card or Voter ID or Passport or Driver's License
    2. Directors or Partners latest passport size photographs
    3. Office Name Board both in English and Regional Language
    4. List of Employees and their designations if any
    5. Directors/Partners Mobile Number
    6. Directors/Partners Email id
    7. Partnership Deed in case of Firm
    8. Certificate of Registration of Business
    9. Partnership Deed or MOA, AOA or LLP Agreement
    10. firm/LLP/Company PAN
    11. Board Resolution
    12. Registered Office Address Proof: Latest Power Bill
    13. No-objection letter cum Affidavit from the Landlord if it is owned.
    14. Rental Agreement from the landlord if the premises are rented.

3 Step Registration Process:

  • 1

    Preparation of Documents

    Through CompaniesHouse - One Hour Job

    We will prepare all the documents in order for online uploading with the Shops and Establishment web portal.

  • 2

    Online Submission

    Through Online Portal - One Hour Job

    We will upload the documents with the Shops and Establishments web portal online and pay the requisite fee. We will approach the Inspector concerned and get the application approved.

  • 3

    Certificate of Registration

    Through Online - Under 3 days

    After scrutiny, the Officer will approve the form and issues you the Certificate of Registration Online through their web portal, then you can open your current banking account if your business is a proprietorship. Later you can apply for other registrations such as GST, MSME etc.,. You can display this certificate at the prominet place in your office.


What Next Once you Register under Shops & Establishments

If you are a proprietor, you need to register under other departments also and these registratons depend on nature of business which they carry on. You can find below the other mandatory registratons and statutory compliance requirements of a business entity.


Other Registrations

  • A

    GST Registration

    GST registration is Mandatory if you are a Taxable dealer in sale of Goods or supply of Services.

  • B

    FSSAI Registration

    If your business deals in Food, Food Items you need to apply for Food License with Food Safety and Standards Authority of India.

  • C

    IEC Registration

    Import Export Code (IEC) is required to be taken if you deal in Import or Export of Goods of Services.

  • D

    IPR Registration

    If you want to protect your business name, brand, literary work, invention, you need to apply for Trade Mark, Copyright, Patent respectively with the department of Intellectural Properties of India.

  • E

    Professional Tax Registration

    Professional Tax is Mandatory for the business entities registered in India. For all states it is not mandatory.

  • F

    MSME Registration

    To avail the benefits under The Ministry of Micro, Small & Medium Enterprenuers Act, it is mandatory to get registered under this Act.

  • G

    Local Trade License

    The new business entity has to apply for Local Trade License with the Local Municipality or Municipal Corporation.

  • H

    PF Registration

    If your business is covered under PF Act, you need to get the PF Registration. Now MCA is giving PF Registration along with Incorporation, you need not required to apply again separately, you need to enrol the employees once the threshold limit crosses.

  • I

    ESI Registration

    If your business is covered under ESI Act, you need to get the ESI Registration. Now MCA is giving ESI Registration along with Incorporation, you need not required to apply again separately, you need to enrol the employees once the threshold limit crosses.

Annual Compliance

If your business is a proprietorship, you need to comply the following:

  • 1

    Income Tax Return

    Every proprietorship business has to file it's Income Tax Return in form ITR-3 or ITR-4 on or before 31st July of each year. Incase of Tax Audit, the date will be 30th September.

  • 2

    TDS Return

    Every business entity which is subject to file TDS returns has to file it with in Due date to avoid penalty.

  • 3

    PT Return

    Every business entity which subject file PT Returns has to file it's Monthly PT Return with in due date to avoid penalties.

  • 4

    GST Returns

    Any business entity which subject to file GST returns on QRMS basis has to file with in due date to avoid penalties.


Let's Clear Your Doubts


Who has to apply for Shops & Commercial Establishments Regisration?

Every employer and owner of a shop & establishment whether it is Sole Proprietorship, Partnership Firm, LLP, Private Limited Company, Public Limited Company or any other business entity registered under any other law for the time being inforce shall apply for registration under Shops & Commercial Establishments Act within 30 days of commencement of business.

Do we need to renew this certificate?

Yes. In some states on yearly basis and on the other states on three years basis.

What is mode of payment?

Online.

What are the obligations on the employer in implementation of the Act?

a) Every employee must be allowed to avail weekly holiday for every period of seven days. b) No employee shall be allowed to work more than 8 hours in any day and 48 hours in a week without making payment of overtime wages. c) Every employee shall be issued letter of appointment in form No. XXVI and the employer shall maintain the registers mentioned overleaf, namely; 1) Register of Employment in form No. XXII. 2) Register of wages in form no. XXIII 3) Register of Leave in form no. XXV. 4) Register of Advance of Wage in form no. XII 5) Bound visit book and others as applicable. d) Every employer is required to furnish the information or document to the inspector notified under the Act on demand. e) No person who has not completed his 14 years of age shall be required or allowed to work in any Shop or Establishment. f) Special Provisions to Women Employees :- i) No women employee shall be required or allowed to work in any shop & establishment before 6:00 AM and after 8:30 PM. ii) Every women employee is entitled for paid leave for six weeks immediately proceeding the date of delivery and six weeks after the date of delivery. g) Leaves:- i. The Employee who has served for a period of 240 days or more is entitled for 15 days of leave with wages, 12 days casual leaves and 12 days sick leaves and such leave with wages may be accumulated up to a minimum of 60 days. ii. Every employer is responsible for payment of all wages and sums required to be paid under this Act and monthly wages shall be paid by 5th of every month. iii. No employer shall without a reasonable cause, terminate the services of an employee who has been in his employment continuously for a period of not less than 6 months without giving such employee at least one months notice. iv. Every termination of employment shall be made in writing before the appropriate authority. Every employee who has served in any establishment for a period of not less than one year shall subscribe to the insurance scheme or insurance saving scheme.

What are the rights and privileges of the employees under the Act?

a) Every employee is entitled to receive the wages for the period of work rendered. b) Every employee is entitled for 15 days leave with wages, 12 days casual leave and 12 days sick leave. c) Every employee is entitled for the overtime wages worked beyond the normal working hours i.e., 8 hours at the rate of double the average wages earned. d) Every employee is entitled weekly holiday with wages and also Notional/Festival Holidays notified from time to time. e) Any employee who has been in his employment continuously for the period of not less than one year, shall be eligible for service compensation @ 15 days of average wages of each year. f) Every employee is eligible for encashment of the leave with wages for a period of 8 days in every year. Every employee is entitled for a special casual leave for 6 days only once during his entire service, if he/she has undergone vasectomy or tubectomy operation on production of certificate.

In howmany days a shops & commercial establishments registration done?

One day.

What is the government fee for Shops & Commercial Establishments Registration?

It depends on the number of employees. For example, of the number of employees are 5, then the governmen fee will be Rs. 500.

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