All businesses in India are required to register under The Shops and Establishment Act with their respective authorities depending on the place of business.
Shops and Establishment Act is enacted to regulate the conditions of work and employment such as working hours, holidays, leave, opening and closing hours, rest interval of employees, and payment of wages in shops, hotels, restaurants, theaters and other commercial establishments.
Each state in India has framed its own rules for the act, which may differ from state to state. In some states it’s also known as Shops and Commercial Establishment Act.
In this article, we will let you know how to get registration certificate under The Shops and Establishment Act in India.
Here is a list of commercial establishments required to be registered under the Shops and Establishment Act ;
- residential hotel
- places of public amusement or entertainment
- other commercial establishments as required by the act
Procedure for getting registration certificate under the Shops and Establishment Act
Within 30 days from the date of commencement of business, the employer of shops or commercial establishment is required to send an application in the prescribed form to the Inspector in charge along with prescribed fees.
Shops and establishment act registration is obtained from the Labour Department of the State. Generally local district labour officers are declared as inspectors under this act to grant registration certificate.
Fee for registration depends on the number of workers employed in the organization.
Following details are to be provided in the application form;
- Name of the employer and establishment
- Postal address of the establishment
- Number of employees working
- Date on which the establishment commenced work
On submission of the application, the inspector in charge will review the application. If satisfied, the shop or commercial establishment will be registered and a registration certificate will be issued to the occupier.
The registration certificate must be prominently displayed at establishment and renewed periodically.
In case of closing down of business, employer is required to notify the inspector in writing within 15 days time of closing. If satisfied, the inspector will cancel the registration given under the Shops and Establishment Act and remove its name from the register.
Any changes to information given at the time of registration is required to be intimated to the inspector within 15 days from the date on which such changes take place. After verification, inspector will make necessary changes and if required will issue a fresh registration certificate.
Documents required for registration under The Shops and Establishment Act
Depending on the type of business and the state where you are applying for registration, you may be required to submit some additional documents to the inspector for getting certificate.
Here is a list of common documents generally asked at the time of registration;
- Commercial Address Proof
- Identity Proof
- Other licenses required to start business
- PAN Card
- Fee Payment Challan
Links to view Shops and Establishment Act of certain states;