Shop & Establishment Registration is done in India at the state level. Every State Government has formulated their respective Shop & Establishment Act which provides the manner of registration of every business entity in their state. This Act regulates areas such as working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, maternity leave, sickness leave and casual leave etc.
All the entities including trading and service firms, restaurants, cafes or hotels, banking, insurance, share brokers, educational institutions etc. must obtain this registration. Generally, the time limit for registration is 30 days from the date of establishment. The registration certificate must be prominently displayed at the shop or commercial establishment and renewed periodically. In each state, the Shop & Establishment Registration is regulated by Labour Department.
Shop Establishment registration is known by different names in various states. For instance, in Delhi it is known as Delhi Shopex, in Bihar it is known as Trade License, in Maharashtra it is known as Gumasta License, and e-Karmik in Karnataka.
BENEFITS OF SHOP ESTABLISHMENT REGISTRATION
• Regulation of working hours.
• Prevention of child labour.
• Separate regulations regarding employment of female staff.
• Proper guidelines for record-keeping.
• Fixed opening and closing time.
• Intervals for rest & lunch.
• Rules regarding Weekly-offs, working condition and wages.
• Important measures such as hygiene & sanitation, lighting and ventilation, safety precautions and hazard management.
✅ Details of the employees and manager of the business
✅ Proof of Business Address
✅ Passport size Photograph
✅ Aadhaar Card
SHOP ESTABLISHMENT REGISTRATION FAQs
❓ When should a businessman make an application for registration of shop & establishment?
☛ In most states, the time limit to apply for shop act registration is within 30 days from the date of establishment.
❓ Can Shop Act registration be cancelled owing to closure of the business?
☛ In case, the shop or establishment is intended to be closed or shut down, the business entity shall intimate it to the Chief Inspector within prescribed time limit. The Chief Inspector will review the request for closure and remove the shop or commercial establishment from the register and cancel the registration certificate.
❓ What are the records to be maintained under the Shop & Establishment Act?
☛ Every person registered under Shop & Establishment Act is required to keep up-to-date registers regarding details of employment, fines, deductions, advances, salary, holidays etc.
❓ How much is the validity of the shop establishment certificate?
☛ The shop establishment certificate validity period depends upon the state under which the business entity is operating. In some states validity is lifetime and some states range from 1 year to 5 years. After that, the owner of the shop has to apply for the renewal of his shop establishment license or certificate.