Overview

Most businesses in India, including shops, restaurants, cafes, etc.; Shops and establishments are regulated under the provisions of the Act. Although the rules and laws vary from state to state, the act is intended to provide fair working conditions to workers and take care of their holidays, wages and rights.

Go through step by step to obtain shop and installation license as well as its importance, features and compliance.

Shop and Establishment License Act?

The shop and establishment license is issued to businesses, businesses, businesses registered under the Shops and Establishments Act. Furthermore, all the rules and laws of the Act are regulated by the Department of Labor which not only regulates commercial establishments, but also monitors the work of charitable trusts, societies, educational institutions and other campuses such as banking, stock exchanges, insurance is. Companies, Share Brokerage etc.

Both organized and unorganized sectors are regulated under this Act, which ensures that workers are provided with appropriate working conditions. The rules and laws constituted under this Act vary from state to state, but the primary goal is the same. Therefore, to get the license the establishment has to file an online application related to the official portal of its state.

Who can obtain shop and installation license?

• Wholesaler or retailer shops and establishments
• Service Center
• Warehouse, Store-room, and Godown
• In addition, any other work space
• Hotel
• Restaurant & Restaurant
• Amusement houses, amusement parks, theaters etc.

Benefits

• Gives legal recognition to the concerned establishment / shop
• This is an original license which may prove helpful in further registration
• Act as a trade proof when you apply for further registration in India
• Registration becomes mandatory for reasons such as opening a bank account in the name of the shop / shop
• Assisted in increasing investment through loans or enterprise capitals for the proposed business establishment

Required Documents

• ID proof like Aadhar card / PAN card / Voter ID card / Employer's driving license.
• Passport size photo of the employer
• A photo of the establishment / shop with the employer
• In the case of rented property, a copy of the rent agreement is
• Any utility bill of work premises

Required other documents by establishment or business unit:

• In case of trust, list of number of trustees
• ROC
• Memorandum of Association
• In the case of cooperatives, the list of the number of members and chairman
• Address Proof
• All important information such as company name, name, and signature of related partner and partnership with partners share percentage
• A copy of RBI permission
• Certificate of incorporation as per Companies Act
• A copy of the certificate of registration issued by the Commissioner of Donation
• A resolution showing the nomination and list of nominated directors
• A resolution regarding the commencement of business of the society
• RTO Transport Permit
• Food or FSSAI license
• Food and Drug License
• A copy of the collector's permission
• NOC for Cybercafe by the concerned Police Department
• IEC Certificate
• NOC from Municipal Corporation to open Spice and Flour Mill
• Excise license to open beer bar, restaurant or liquor store
• A certificate issued by SEBI to the stock broker
• License issued by Police Department to open security services

What aspects are regulated according to the provisions of the Shops and Establishment Act?

The Shop and Establishment Act has made several provisions regulating aspects related to shops and installation work in India.

Following are some of the key aspects regulated by them:

• Maximum working hours of employees / laborers
• Allotted time period for food and rest
• Regulation of laws to prohibit child labor in factories and other establishments
• Women Employment
• Number of compulsory weekly holidays provided to employees
• Closed / Closed on the day of establishments / shops
• Time of opening and closing of establishments / shops
• Wages to employees for holidays
• Accident Coverage Policies
• Preventive measures against fire
• Proper ventilation and lighting for workers
• Clean and hygienic premises for the workers
• Terms and time for payment
• Regulation of deduction on payment
• Quit Policy
• Dismissal
• Employee’s proper record keeping

How will Servzone help you?

Objectives

• The main purpose behind registration is to protect the rights and provide benefits to employees working in organized sector such as establishments, hotels and restaurants as well as unorganized sectors.
• In addition, it regulates wages, holidays, incentives, etc. to set better standards for the working conditions of employees.

Note: More information related to the Shop and Establishment Act can be gathered on the relative state government portal.

Eligible Criteria

Eligibility is the main concern when you are thinking of getting registered under the Shop and Establishment Act.

 Following are the things you should check:

• The most important thing is whether the establishment or shop you are going to invest in comes under the Shops and Establishments Act.
• If yes, then carefully read all the rules and regulations of the Act prescribed for the employees of the proposed area.
• Exceptions related to rules and regulations may vary from state to state. Be sure to check the state list where the business is being set up. Once you pass through the list properly, the next step is to file for the online application of the Shop and Establishment Act within 30 days of setting up the business.

Registration Process

Any business establishment / shop has to apply for license to the Chief Inspector of the concerned area within 30 days of commencement of business activities. It is implemented through a prescribed form, which requires some important information such as the name of the employee concerned, the name and address of the establishment, the number of employees in the category of the proposed establishment and vary from state to state. Some other details. Once implemented, it is reviewed by the inspector, then the license is granted to the establishment in the next phase. The shop and installation license must be displayed on the premises and renewed at the scheduled time.

As per the Act, in case of closure of business any establishment or shop has to notify the Chief Inspector in writing 15 days before the closure. The Chief Inspector further cancels the registration certificate of the establishment or shop by removing it from the register.

Also, it is mandatory for all business entities to obtain shop and establishment licenses, even if they are working from home.

 Registration Procedure

• Download the application

First of all, download the registration application from the official website of the respective states in which your shop or establishment is located.

• Fill the required details

• Name of the proposed establishment / shop
• Employer Name and Description
• Name and description of employees at that time
• Address of registered establishment with NOC or Rent Agreement (For Rent Complex only)
• Employer's PAN card details

• Submit the Application

Once you have filled all the details, hand it over to the Chief Inspector or Inspector of Shops and Establishment Act along with the prescribed fee amount.

• Verification of the Application

 After submission, all documents and applications will be verified by higher authorities.

• Issuance of the license

 If all the documents are as per the requirements of the Act, a certificate will be issued to the proposed establishment / shop

Notes: Physical verification and issuance of Certificate of Registration in major city areas may take approximately 15-20 business days. However, it can vary from one state to another.

• The inspector may visit the registered premises for verification.
• Display shop and establishment registration certificate at an easily accessible location in the respective premises.
• The license must be renewed periodically before the expiration date.
• Notify the inspector in writing if the establishment closes within 15 days of closing.
• Regardless of the shop and installation license, you will also have to get approval from the labor department of the respective states to start business activities in that state.