If you are the owner of a shop or any other commercial establishment In India that undertakes the Business operation, then you must apply for a Shop and Establishment License within 30 days to the Chief Inspector. You can apply for a Shop and Establishment Act License by filing an application in your respective state and The application for a license in the recommended form must contain the name of the employer, address of the establishment, the name of the establishment, category of the establishment, number of employees and other admissible details as desired.
On submission of the application and review by the Chief Inspector, the shop or commercial establishment will be certified and a registration certificate will be issued to the owner. It is obligatory In India that the shop or commercial establishment should display the registration certificate all time and should renew it after the expiration without any carelessness.
If the shop or establishment decides that Business should be closed down, Then the occupier is required to send a notification to the Chief Inspector in writing within 15 days of the closing. The Chief Inspector will review the request and then will remove the shop or commercial establishment from its register and cancel the registration certificate.
Shop and Establishment Act in India
The Shop and Establishment Act comes under the authority of the Department of Labor and it supervises and administers any establishments wherein any trade, business or profession is carried out. The act not only governs the working of commercial establishments but also keeps an eye on the working of the societies, charitable trusts, printing establishments, educational institutions and other premises in which banking, insurance, stock or share brokerage takes place.
The areas covered under this act are working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, annual leave, maternity leave, sickness and casual leave, etc. It is compulsory to register under this act within 30 days of starting the business. Also, the registration certificate will be valid only for 5 years. It has to be renewed after the expiry of 5 years.
The Shop and Establishment Act in India may slightly differ from state to state. However, as per the Act, shops and commercial establishments operating in each state are covered by their separate Shop & Establishments Act in the states.
The shops and establishments act applies to:
- Retail or wholesale shops.
- Premises from where services are provided to customers.
- Store-rooms, godowns, and warehouses.
- Any other place of work.
- Residential hotels.
- Restaurants or eating houses.
- Theater or any other place of public amusement or entertainment.
Information that needs to be furnished for Shop and Establishment License Registration :
- Name of firm
- Address of Firm
- Name of Manager, if any
- Nature of Establishment: Nature of shop, Like Clothing Store, Furniture Store
- Number of Employees in Establishment
- Day of Holiday, etc
Documents Required for Shop and Commercial Establishment Registration :
- PAN / Aadhar Card / Driving License/ Voter Id
- Photo of Owner
- Photo of Shop along with Owner ( Just Click with Mobile Phone )
- Rent Agreement, if Rented
- Electricity Bill
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Other document required for Shop and Establishment License
- ROC
- MOA (Registration Certificate)
- List of the Trustees/Member of Trust
- Registered Address and proof thereof
- Resolution of society regarding starting of business
- List of the Chairman and Member of co-operative society
- List of Directors and Nomination of Directors (Resolution)
- Copy of Registration Certificate given by Charity Commissioner
- Certificate of Incorporation, Commencement Certificate under the company act
- Partnership Deed that contains name of partners, signature of partners, Company Name and percentage of partnership
- RBI Permission Copy
- RTO Transport Permit
- Copy of Collector Permission
- License From Agriculture Department
- Food Licence from concern authority
- The Food and Drugs Administration License
- No objection certificate from Police Department for the Cybercafe
- IEC certificate for Import-Export business
- Certificate issued by SEBI for share broker
- Licence from Police Department for Security Services
- No objection certificate by Municipal corporation for floor mill and masala mill
- Copy of Excise license for wine shop, Beer bar and Restaurant
- No objection certificate from Municipal Commissioner, Fire Brigade, Collector and Police Department.
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Conclusion
The Shop and Establishment License Is a very basic license In India, this license is required at all stages of Business registration in India and It is to be acquired by all Businesses and it is mandatory to display this license all the time while carrying out day to day Business. So You should not forget to get this license for your business.