IndiaFilings » Learn » Aadhaar » Is Your Company Eligible for Registration Under the Shop and Establishments Act?

Is Your Company Eligible for Registration Under the Shop and Establishments Act?

Who can get Shops and Establishments License?

Is Your Company Eligible for Registration Under the Shop and Establishments Act?

What is the Shop and Establishment Act?

 Apart from having a business plan and ideas to set up your firm, there are other things like financing options and mandatory regulations to be taken into consideration to get your business up and going. The Shop and Establishments Act is one of the rulings enacted in every state of India that businesses must comply with.

Passed in 1948, it was brought about to administer employee rights and regulate conditions within the work environment. Although the Act was sanctioned countrywide, the rules and conditions for it vary according to different states. However, as an overview, the Shops and Establishments Act includes laws that cover employee security (payment of wages, regulation of working hours) and terms of services for the business. Employers in commercial establishments must take care that these rules are complied with.

When do you need to register?

If you are looking to start a commercial establishment or a shop- which includes everything from restaurants and eateries to cinema halls and even insurance establishments, you need to file for registration under the Act, within 30 days of commencement of the business.

This registration is made compulsory as it acts as the basic proof and license of your business to apply for other registrations required to run an establishment in India.

What’s the Procedure to Get Registered?

An application is submitted in the format provided: name of the establishment, name and personal details of the owner, address of the establishment, and the PAN card of the owner or the business itself. These details are submitted along with a prescribed fee to the inspector that may be in charge.

After receiving the application, it is scrutinized by the inspector followed by a visit to the establishment and the provision of a registration certificate under the Shop and Establishment Act.

Any business with an office space or an establishment, including proprietors and freelancers operating from home who plan to raise investment through loans or from venture capitals require the registration to prove their credibility. Once the registration process has been completed, the hard copy of the certificate is usually issued within 10 working days in major cities and about 15 to 20 working days in other places.