Online Shops & Establishments License Registration in India

A Shops and Establishment license ensures businesses with physical locations comply with labor laws, regulating working conditions and operational hours, enforced by local authorities to maintain workplace standards.

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Four Steps to Get Your Shops & Establishment License

Fill the Form

Provide business details

Add to cart

Pay the required fee online

Submit Documents

Upload required papers

Certificate delivery

Official Document Delivery

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Overview of Trade Licence Registration

The Shops and Establishment Registration in India is a mandatory requirement for all commercial establishments, including shops, retail outlets, restaurants, and other business premises. Governed by the respective state laws, this registration ensures compliance with labour laws and regulations, such as working hours, rest intervals, and overtime. It provides legal recognition and facilitates the systematic management of employee welfare, safety, and working conditions.

The process of obtaining this registration involves submitting an application to the local labour department within a specified timeframe from the commencement of business. Necessary documents typically include proof of establishment, identity proof of the owner, and details of employees. Upon verification, a registration certificate is issued, which must be displayed prominently at the business premises. This certificate needs to be renewed periodically as per state-specific rules.

blank-paper-sheet-with-small-scooter-table
blank-paper-sheet-with-small-scooter-table

The Shops and Establishment Registration in India is a mandatory requirement for all commercial establishments, including shops, retail outlets, restaurants, and other business premises. Governed by the respective state laws, this registration ensures compliance with labour laws and regulations, such as working hours, rest intervals, and overtime. It provides legal recognition and facilitates the systematic management of employee welfare, safety, and working conditions.

The process of obtaining this registration involves submitting an application to the local labour department within a specified timeframe from the commencement of business. Necessary documents typically include proof of establishment, identity proof of the owner, and details of employees. Upon verification, a registration certificate is issued, which must be displayed prominently at the business premises. This certificate needs to be renewed periodically as per state-specific rules.

Exemptions for Shops and Establishment Registration

Certain small businesses and specific categories may be exempted from registration.

Factories
Government Offices
Establishments with Minimal Workforce
Seasonal Businesses
Agricultural Establishments
Charities and Religion
Factories

Establishments that fall under the purview of the Factories Act are usually exempted, as they are governed by a different set of regulations.

Government Offices

Central and State Government offices and departments are often exempt from registration under this Act.

Establishments with Minimal Workforce

Some states provide exemptions for establishments with a very small number of employees, such as those with less than a specified number of workers (this number varies by state).

Seasonal Businesses

Businesses that operate only for a certain season or part of the year might be exempt in some states, especially if their operation period is below a certain threshold.

Agricultural Establishments

Farms and establishments primarily engaged in agricultural activities, including animal husbandry, are often exempt.

Charities and Religion

Religious institutions like temples, churches, and mosques, along with non-profit organizations, may be exempt from registration if they don't engage in commercial activities in certain jurisdictions.

Essential Documents for Shops and Establishment Registration

Proof of Business Identity
• PAN Card: The Permanent Account Number (PAN) of the business owner or the business entity is mandatory.
• Owner’s Identity Proof: Valid identity documents like Aadhaar Card, Voter ID, Passport, or Driving License of the owner.

Proof of Establishment
• Rental Agreement/Lease Deed: If the premises are rented or leased, a copy of the rental agreement or lease deed.
• Property Documents: In case of owned property, documents like property tax receipt or sale deed.

Business Address Proof
• Utility Bills: Recent utility bills (electricity, water, or property tax receipt) to confirm the location of the establishment.
• NOC from the Owner: A No Objection Certificate if the premises is rented.

Additional Documents
• Photographs: Passport-sized photos of the owner.
• Details of Employees: If applicable, a list of employees working in the establishment.

Other Relevant Licenses
Depending on the nature of the business, additional licenses such as the Food Safety and Standards Authority of India (FSSAI) license for food businesses, might be necessary.

Note:
The specific requirements may vary slightly from state to state in India.

Shops and Establishment License Registration Process

The process of Shops and Establishment Registration varies from state to state, but it typically involves the following steps:

Visit the official Labor Department website of the state where your establishment is located. The majority of states offer an online registration process, making it convenient and efficient.

Obtain the registration application form from the official state website where your business is located.

Complete the form with essential information, including:
• Employer’s Name
• Business Name
• Establishment Address
• Business Category
• Employee Count
• Business Commencement Date
• Working Hours and Holidays

Upload the required documents online as per the form’s instructions. In some regions, you may also need to submit physical copies at a designated office.

Fee Payment: The fee depends on the type and size of your establishment. Most states offer online payment methods for convenience, though some might require offline payment methods like Demand Draft or cash.

Verification Process: An inspector may visit your premises to verify the details provided in the application and to ensure compliance with the relevant laws.

Upon successful verification of your application and following any required inspection, the department will issue the Shops and Establishment License. This license is typically valid for a specific period and must be renewed as per the state’s regulations.

Processing Time: The time to obtain the registration can take around 15 to 20 working days in major cities, with potential variations based on location and specific state rules.

Shops and Establishment Deadline Validity Cancellation

Deadline for Registration

License Validity

Cacellation of LIcense

An application for the Certificate of Registration under the shops and establishment act is to be submitted within 30 days from the business commencement date.

The Shops and Establishment License’s validity can differ from one state to another. Some states grant a lifetime certificate, while others offer certificates with a validity ranging from one to five years. It’s important to renew your registration application before it expires to maintain compliance.

If your organization decides to cease its operations, you must apply for cancellation within 15 days of closure. The responsible officer will then proceed to cancel the organization’s registration. This process ensures that your business is no longer legally bound by the Shops and Establishment Act.

Post-Registration Compliances of Shops and Establishment Registration

How V Smart Auditor Can Help ?

  • Expert Guidance

    Our experienced team provides expert guidance throughout the Shops and Establishment Registration process. Whether you are an individual or a corporate entity, we ensure that you have a clear understanding of the requirements and procedures involved.

  • Documentation Assistance

    We assist in preparing and verifying all necessary documents, including identity proofs, business address proofs, and other statutory documents. This ensures that your application is accurate and complete, reducing the chances of rejection.

  • Application Submission

    Our service streamlines the application process by handling the submission of forms and documents. We ensure that all details are correctly filled out and submitted to the appropriate authority, saving you time and effort.

  • Compliance Check

    We conduct a thorough compliance check to ensure that your business meets all the legal obligations under the Shops and Establishments Act. This proactive approach helps in identifying and addressing any potential issues beforehand.

  • Timely Updates and Follow-ups

    Stay informed with regular updates on the status of your registration process. We manage all communications with the authorities, including follow-ups, to ensure a swift and smooth registration experience.

  • Post-Registration Support

    Our support extends beyond the registration process. We offer guidance on post-registration requirements such as renewals, record maintenance, and compliance with any changes in legislation, ensuring that your business remains compliant.

Frequently Asked Questions

What is a Shops and Establishment License, and why is it necessary for businesses?

A Shops and Establishment License is a legal requirement for businesses and commercial establishments to regulate employment conditions, employee rights, and working hours. It ensures that businesses operate within the legal framework and adhere to labor laws

How can I apply for a Shops and Establishment License?

To apply for a Shops and Establishment License, you need to visit your state's Labor Department website, download the application form, fill in the required details, upload necessary documents, pay the registration fee, and, in some cases, undergo an inspection.

What are the key documents required for the registration process?

Essential documents include the application form, owner's ID proof, PAN card copy, rental or sale deed of the establishment, photographs of the establishment's entrance, certificate of incorporation (if applicable), MOA and AOA (for companies), a list of employees, and any additional business licenses required.

How long is the validity of a Shops and Establishment License?

The validity of the license varies from state to state. Some states offer lifetime licenses, while others provide licenses with a validity period ranging from one to five years.

Is there a fee associated with obtaining a Shops and Establishment License?

Yes, there is a registration fee, and the amount may vary based on the type of business and the specific license you are applying for. Payment options are available online in many states, but offline payment methods, such as Demand Draft or cash, may be required in some cases.

What happens if I need to make changes to my business details after obtaining the license?

If you need to make changes to your business details, you should typically inform the Labor Department and update your license accordingly to ensure that your records remain accurate.

Are there any specific regulations related to working hours and holidays that businesses need to follow once registered?

Yes, the Act often includes regulations regarding working hours and holidays, which businesses must adhere to. These regulations may vary from state to state, so it's crucial to be aware of the specific requirements in your location.

What is the process for canceling a Shops and Establishment Registration if a business decides to shut down?

If an organization decides to close its operations, the employer must apply for cancellation within 15 days of the closure. The officer in charge will then cancel the registration of the organization

Can you operate a business without a Shops and Establishment License?

Operating a business without the required license is illegal and can lead to legal complications and penalties. It's essential to obtain the necessary license to ensure that your business operates within the boundaries of the law.