Shop and establishment license-At a glance

How to get Registration under Shops & Establishment Act,

• If you start a company, you must register your business under the Shop & Establishment Act through the Labor Department of the State Government.
• Those registrations are online right now. To do so, you need to go to the state-related website and fill in the General Shop Registration form and connect the necessary details and documents.

What’s the Shop and Establishment Act?

• Special regulations under this Act shall apply to a shop or business establishment located within the boundary of the Uttar Pradesh State Municipal District.
• In addition, the Labor Department of the existing State is controlled by the Shop and Establishment Act, and applications for registration are also sent to “local district labor officers.”

Shop and Establishment Act Registration (Shop License)

The Shop and Establishment Act essentially regulates the following –

• Prohibition of employment of children.
• Employment of young people or women.
• Cleanliness, lighting and ventilation of the establishment.
• Working conditions of employees
• Leaves and Holidays they get.
• Precautions in place against fire accidents.
• Hours of work
• Payment/ Deductions of wages
• Terms of Service of employees

Shop & Establishment Registration Applicability

• Every shop and establishment must be registered in compliance with this Act within thirty days of the commencement of operation.
• As this is such a simple licence, several other licences include this as evidence of a commercial undertaking. For example, most banks would ask you to supply it if you want to open your current account.
• In order to receive this licence, you will need to have the PAN card of the business owner or the company itself, a copy of the lease agreement or sales act, and the information of all employees.
• The premises regulated by the Act are stores, commercial establishments, residential hotels, clubs, restaurants, dining houses, theatres & other public entertainment venues, etc. except those which come under the Factories Act 1948.

Meaning of a Commercial Establishment

• Required to adhere to the Shop and Establishment Act, a commercial establishment is a place where any trade, occupation, company or job connected to any of these activities is carried out.
• Under the Act, there can be a commercial establishment below
  • Businesses such as banking, insurance, stocks exchange etc
  • Restaurants and cafes
  • A society registered under SRA 1860
  • Registered or unregistered trusts (Charity/Non-charity)
  • Journalistic or related printing businesses
  • Contractors & auditors
  • Hotels and clubs
  • Quarries and mines not included in the Mines Act 1952
  • Private educational institutions
  • Cinema theatres and entertainment halls
  • Any other entertainment-related businesses

Knowing the requirements of the Shop and Commercial Establishment Act is important if you are moving forward to the opening of a store.

Benefits & characteristics of the Shop & Establishment Registration

• Smooth inspections
• Government Benefits
• Legal Entity Proof
• Business Bank Account
• Avoid unethical business practice
• Promote Growth
• Solidifies entity’s position in the market
• Ease of opening a current account
• Enforce better wages and holiday management
• Hassle-free inspections
• Ensure peace of mind for employer & employee

List of Documents required for Registration of shops and establishments

It is also very essential to keep such documents handy to start any registration process so that the process is simple and hassle-free.

• Address proof of establishment and Identity Proof
• Affidavit to be shared with the applicant
• Certificate of incorporation, MOA, AOA of the company;
• Lease Deed to the Constitution,
• List of management employees and directors, if applicable
• Additionally, Legal Occupancy document proof of the establishment/unit or allotment letter of the government agency;
• Documentary Proof of the establishment of trade,
• Canceled Cheque and bank statement;
• Photo of the shop along with the owner
• Details of employees, their wage rates, and the company
• Income Tax Returns and receipt of property tax;
• Passport size photo of the applicant
• NOC from the land-owning agency.

What are the registration fees for Registration under UP Shops & Establishment Act ?

• These are the govt fees for registration under the Shop and Establishment Act.
• They focus on the state and the No of employees.
• The fee for the registration of any shop or establishment varies as per the legal framework of the State.
• There is no fixed registration rate at the national level.
• Fee depends on the number of employees in the organization or establishment.
• Any employer must apply an accurate number of employees when filling out the registration form.
• Registration fee will be determined by the inspector in charge, i.e. the labour officer.
• Employer required to pay the registration fees according to the No of employees engaged in the organization and they are given below:

Uttar Pradesh

Category of shop	Fee per financial year of part of the year	Category of a commercial establishment	Fee per financial year of part of the year
With no employee	40	With no employee	80
When Employing 1 to 5 employees	200	Employing 1 to 5 employees	300
Employing 6 to 10 employees	300	Employing 6 to 10 employees	400
If Employing 11 to 25 employees	500	Employing 11 to 25 employees	1000
Employing more than 25 employees	1000	Employing more than 25 employees	2000

Madhya Pradesh

• 0 Employees: Rs.100
• 1 to 3 employees: Rs.150;
• 3 to 10 employees: Rs. 200;
• More than 10 employees: Rs. 250

Andhra Pradesh

• 0 Employees: Rs. 30;
• 1 to 5 employees: Rs. 100;
• 6 to 10 employees: Rs. 200;
• 11 to 20 employees: Rs. 1000

Maharashtra

• 0 employees: Rs. 100;
• 1 to 5 employees: Rs. 300;
• 6 to 10 employees: Rs. 600;
• 11 to 20 employees: Rs. 1000;
• 21 to 50 employees : Rs. 2000;
• 51 to 100 employees : Rs.3500;
• 101 or more: Rs. 4500

Delhi

• 0 Employees: Rs. 5;
• 1 to 10 employees: Rs. 15;
• 10 to 25employees: Rs. 30;
• 25 and above employees: Rs. 50

Steps by Step Procedure under the Shop and Establishment License

Shop and Establishment Licensing Procedures are as follows:-

It is Compulsory to get registration under the Shops and Establishment Act. The registration procedure is outlined below:

 

Stage-1: Submit an application request for Shop and Establishment Licensing

• The business owner who wishes to use the Shop and Establishment License must apply an application to the Chief Inspector along with the regular fees.
• Within 30 days of the start of work in your establishment or shop, you must send an application in the prescribed form to the regional inspector.
• The application must be submitted with the required fees and must include the following information:
  • Your name as the employer and, if applicable, the name of a manager;
  • Establishment’s or Shop postal address;
  • Your name of the establishment’s or Shop

Stage-2: Verification of the application under Shop and Establishment Licensing

• Upon receipt of an application for a Shop and Establishment License, The examiner will examine the reliability and validity of the application.
• The inspector shall perform the same investigation until he is satisfied with the information and certificate issued. Remember, any invalid data in the application lure the chances of cancellation.
• In the event of any loopholes, the inspector is allowed to cancel the submission.

Stage-3: Granting the certificate Shop and Establishment Licensing

• He/she will enter the provided information in the establishment’s register and provide you with the establishment’s registration certificate after the verification is completed.
• The certificate will be valid for 5 years after it is released and will need to be renewed.
• The validity of the credential will remain active for a period of 5 years. After that time, the applicant must fulfill the requirements for renewal.
• When the application has been accepted, the inspector must include the information in the Register of Establishments and issue the applicant the certificate of registration.
• Another necessary condition of this Act is the presentation of the certificate of registration in the premises of the establishment. Failure to comply with such rules would be regarded as an offense that may lead to any penalty.

Who needs to be registered under the Shop and Establishment Act?

• Each employer must apply an application for registration to his/her shop or to any commercial establishment within 30 days of the start of his/her new company.
• This Act is one of the mandatory requirements of all out-of-home businesses operating from any establishment or business.
• All kinds of establishments is governed by this Act require registration of the Shop and Establishment in compliance with the legislation. Like All stores, hotels, food establishments, local restaurants, city theatres, public entertainment venues, and other commercial establishments, etc

More reads: Government Fees for registering the Company

Basis Aspects of Shop Act Regulations

The Shop and Establishment Act has been formulated to control the many main issues that lay the foundation of any establishment on the registered industry/ sector.

Few other aspects are as mentioned below :

• Time for disbursing wages
• Uneven time-period of work
• Work timing of the establishment
• Provision of weekly off
• Wages for urgencies
• Arrangement of ventilation, lighting, & emergency exist.
• Holiday strategy
• Policy regarding Expulsion
• Sanitation within the premises of the establishment.
• Policy regarding rest and suppers
• Child labor
• Details of wages

How to make modifications of Shop & Establishment Registration

• Any modification to the registration of the Shop and Establishment Act must be reported to the officer concerned within the specified time limit. In the event of the closing of the establishment,
• The employer is obliged to intimate the respective officer and to request the surrender of the registration. If the officer is pleased with the correctness of the application,
• He shall issue an order canceling the current registration and shall issue a new Registration Certificate.

What are the records to be maintained under Shop & Establishment Registration?

• Under the Shop and Establishment Act, any enterprise must obtain approval from the Labor Department& keep up-to-date reports on specifics of wages fines, deductions and advances, salaries and holidays. Requirements may vary from state to state.
• Documents relating to annual holidays and the number of workers must be sent yearly to the office of the Municipal Corporation and no daily return must be filed pursuant to this Act.

 

Conclusion

• To be specific every start-up and small business is required to carry out its business activities in compliance with the provisions of the Shop & Establishment Act.
• Those who chose to ignore the obligation to obtain a license under the Shop Act must be subject to any penalty.
• If you have any doubts about the registration of a Shop Act, you might need the support of an expert.
• At RJA, we provide top-notch financial and enforcement services to support applicants and enable them to cope easily with different compliances.

For any information or queries in relation to business registrations & Compliance, filings contact us at singh@carajput.com

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