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The Shop Act is an Act that lays down that every shop owner or owner of a commercial establishment should ensure that he or she has a Shop and Establishment License within 30 days from opening that establishment. This license is obtained from the Chief Inspector of that area. If you have not yet got your Shop Act License, now is the time to do so.
It isn’t difficult to get a Shop and Establishment Act License. All you have to do is fill up an application form, mentioning the name of the employer, establishment, address and category of the establishment along with the number of employees and other desired information.
Even if you are working from home, you would need to get this license for your business. From restaurants to hotels, theatres, retail businesses, etc. every place needs to register itself within 30 days. If you are starting a business in Delhi, you can register your establishment at http://www.labour.delhigovt.nic.in/ser/.
What is the purpose of the Shop and Establishment License?
Workers in the unorganised sector don’t have any other governing body to ensure that their rights and working conditions are as they should be. This is the reason for implementing the Shop Act License. Although the rules of the Shop/Trade License vary from one state to the other, it brings about a certain amount of consistency within a given area – in terms of leaves given, work hours, payments, etc.
The Shop and Establishment Act regulates the functioning of businesses wherein any trade is carried out. Not only does this apply to commercial establishments but also to charitable trusts, profit-run educational institutions and other premises having a brokerage, stock or insurance activities carried out. Some of the areas that fall under the regulations of the Shop and Establishments Act are the rest interval for workers, opening and closing hours, maternity leave, sick and causal leave along with rules regarding overtime work, national and religious holidays, and so on.
Who all come under the Shop and Establishment Act?
A shop is considered to be any premise where retail or wholesale goods are sold or services are provided to people. Under this banner, the following establishments fall under the Shop and Establishments Act
- Restaurants or eating places
- Residential hotels
- Theatre and other places of public entertainment
What are the documents needed for this process?
Every state has its own process, so you should visit the Labour Department to know more. However, some of the documents that you would need to complete the registration process are mentioned below.
- Details of the Manager of the establishment
- Details of employees
- Address proof and PAN card of the proprietor
- Proof of Establishment.
To provide proof of establishment, the owner can provide any document from your lease deed to electricity or telephone bills. They may also ask for the rent agreement at times.
How does the process of applying for a Shop and Establishment License work?
Once you fill in the application form, submit it along with the required documents. You will have to collect a stamped challan on payment of the prescribed fees. Submit the challan along with the application form to the Chief Inspector of the respective area. The form will then be reviewed by the Chief Inspector and once this is done, the shop or establishment will be certified and will receive a registration certificate. This usually takes about a week to be done. The Indian government necessitates that hereafter the registration certificate be displayed in the establishment or shop at all times in a prominent place and on expiry, should be duly renewed.