Shops & Establishment Registration

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Shops & Establishments Act

The Shops & Establishments Act is an act to amend and consolidate the law relating to the regulation of 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.

Shop and Establishment Act is covered under state legislation and each state has framed its own rules and regulations to enforce the act. Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.

All shops, hotels, eating houses, restaurants, theatres, places of public amusement or establishments and other commercial establishment etc. are covered under the Shop and Establishment Act and are required to obtain a registration certificate.

Our specialized consultants at India Tax Helpcan help you with:

  • Filling of forms and issue of registration certificate
  • Follow-up for additional documentation
  • General queries


Shops & Establishment Act Registration

All commercial establishments covered under the Act must apply for registration within 30 days from the date of commencement, by filling up the prescribed form along with payment of the applicable fees. The Shop and Establishment Act is governed by labour department of the respective state and generally the registration application is to be submitted to local district labour officer for approval.

Documents Required for Registration

In general, following documents/information is required in the registration process:

  • Proof of establishment – any lease deed, Electricity / Telephone bills, etc.
  • PAN card of the proprietor
  • Address proof of the proprietor
  • Passport sized photo of the applicant
  • Photo of the shop along with the owner
  • Details of employees, their wage rates and the company (If available)
  • Details of employees or the Manager of the establishment

Fees for registration will differ from State to State. Some base the charges on the type of establishment while other base the fees depending on the number of workers employed.

Our India Tax Help Consultants.in professionals can give you clear guidance on the requirements about fees and documents based on the specific state you wish to register.


Regulations under the Shops & Establishment Act

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
  • Rules for employment and termination of service
  • Maintenance of registers and records
  • Display of notices of obligations of employers as well as employees

Records to be Maintained

Every business has to be maintain the following records under Shops and Establishments act:

  • Approval from Department of Labor
  • Various registers giving details of employment, fines, deductions and advances, salary, holidays
  • Files related to annual holidays, number of employees need to be submitted at the Office of the Municipal Corporation annually

Important Compliance Procedures

Every establishment is required to register itself under this Act within 30 days of commencement of the establishment. To obtain a Registration Certificate:

  • The business owner should send to the Inspector (Chief Inspector of Shops or other Inspectors under the Act) of the area concerned, an application form and fees detailing:
    • Name of the establishment, the employer and the manager, if any
    • Postal address of the establishment
  • The Inspector, on verifying the statement, shall register the establishment in the register of establishments and issue a registration certificate. This certificate has to be prominently displayed at the establishment and needs to be renewed before it expires.
  • If there is any change in the initial statement, the same has to be communicated within 15 days to the Inspector in order to make changes in the register of establishments and issue a fresh registration certificate.
  • In case of business closure, the information has to be communicated to the authorities within 15 days from the closing of the establishment.

FAQ's

A) This depends on the state and the number of employees. Usually, a very minimal fee of less than 100 Rupees is charged for employees ranging from 0-10. Our experts at India Tax Helpcan give you the specific amount to be paid.

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