What is Shop and Establishment License?
The Shop and Establishment Act Requires Every Business to Approach the Department of Labour as it was implemented to govern the rights and working conditions of workers that are employed in the unorganized sector. The act requires all commercial establishments like theaters, eateries, hotels, amusement parks, shops, retail/trade business, etc. to apply for the license and registration within 30 days of commencing the business.
The Act asks the employers to declare the following:
Working hours
Rest interval of employees
Opening and closing hours
Health and safety measures
Wages for overtime work
National and religious holidays
Who should have Shop & Establishment License?
Shop and Establishment License is Mandatory For:
Who is running a shop or having an office or place where they are carrying out business activity.
Every entity who has an office (or branch) where any commercial activity is being carried out.
Why shop establishment is mandatory to register?
Generally, individuals register under Shop & Establishment to open the current account with the bank as a bank does not allow to open a current account without at least two documentary proofs such as service tax registration, Import-export code and VAT registration etc. Apart from opening a bank account, it is more important to have this license otherwise inspector inspecting the business premises may cause unnecessary problems for the businessman.
Sybersify Solutions Shop and Establishment Package
The Services which are included in our package are as Follows:
✅ Consultation
✅ Preparation of Documents
✅Application Filing
✅Shop and Establishment Certificate
Documents Required for Shop and Establishment License
Certificate of Incorporation/ Partnership Deed/ MSME
MOA / AOA of Company
Pan Card of Company
Id and Address Proofs of Partners
Number of Employees
Address proof for Registered office Proof
Shop and Establishment Procedure
Step -1 Arrange all Required Documents: The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step - 2: Preparation of Documents: The Next Step is Preparation of Documents to be Submitted at Department.
Step - 3: Filling of Application For Shop and Establishment: The next Step is Filling Of Application for Shop and Establishment
Step - 4: After Scrutiny and approval of the application Department Issues Shop and Establishment Certificate
Advantages of the Shop & Establishment Registration
It establishes a current account: It can help an individual to open the current account with the bank by getting this certificate from Chartered Accountant.
Smooth inspector visits: Any inspector from the state government or local municipality visits the premises of your office, then you can easily flow from his trap as you are already registered.
No Compliance: It does not require any compliance after registration. Hence, there will be only a one-time cost.
Registrations: It is online and the whole process can be completed within two days only.
FAQs on Shop & Establishment
What are the Objectives of Shop & Establishment?
All Indian state has enacted certain rules and regulations with regard to conditions of work. The main objectives are to secure uniform advantages for employees working in different establishments from shops, residential hotels, and commercial establishments to restaurants, theatres and other places of public amusement or entertainment.
When is Shop and Establishment License?
All shop and establishment need to register itself compulsorily under this act within 30 days of commencement of work. Many other licenses require this as proof of a commercial business as this is such a basic license. Mostly, the banks require you to furnish it if you want to open a current account. So, to get shop establishment license, you would need to provide the PAN card of the business owner or the business itself, a copy of the rental agreement or sale deed, and details of all the employees.
What is the validity of Shop and Establishment License?
The validity of Shop and Establishment License License is for the lifetime.
Is there any difference between Shop Act Registration and Gumasta?
There is no difference between these two, as the word ‘Gumasta’ is derived from Persian language ‘Farsi’ and it means ‘agent’.