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Shop & Establishment License Online

In India, businesses like shops, cafes, and restaurants adhere to the Shop and Establishment Act. This license ensures employee benefits and operational standards in commercial establishments and hotels.

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Overview of Shop and Establishment License Online in India

  • Obtaining an online Shop and Establishment License is mandatory for setting up shops, hotels, theaters, and commercial venues in India. Required documents include the Incorporation Certificate and registration under the Shop and Establishment Act. These licenses ensure proper business registration.

  • Many Indian business operations, like restaurants and cafes, are governed by the Shop Act License. While rules vary by state, the act aims to provide workers with suitable working conditions, fair wages, rights, and holidays.

Shop and Establishment License Act

The Shop and Establishment License Act in India issues a formal certificate to businesses and trades registered under the Shop and Establishment Act. The Department of Labor oversees the Act's rules. Beyond commercial establishments, this license oversees charitable trusts, educational institutes, and various entities like banking, insurance, and stock exchanges. Both organized and unorganized sectors ensure proper working conditions for workers under this Act. Regulations differ by state, yet the fundamental purpose remains consistent. Businesses seeking this license must apply online through their state's official portal.

Benefits of getting Shop and Establishment License in India

Obtaining a Shop and Establishment License in India offers several benefits:

  1. Legal Registrations: The license facilitates other legal registrations required for business operations.

  2. Bank Account Opening: Many business operations, like opening a bank account in the establishment's name, mandate this registration.

  3. Official Recognition: The license provides official recognition to the business, shop, or establishment.

  4. Business Proof: It serves as a legitimate business proof during subsequent legal registrations.

  5. Investment and Loans: The license aids in raising investments, loans, or venture capital for the establishment or shop.

Who should obtain a Shop and Establishment License in India?

  • Service Centers
  • The retailers or Wholesalers 
  • Store-rooms, Warehouses, and Godowns owners
  • Hotels, eateries and food restaurants
  • Additionally, any other working places
  • Amusement parks, Entertainment houses, Theaters, and so on.

Documents for obtaining the Shop and Establishment License in India

To obtain a Shop and Establishment License in India, the following documents are typically required:

1. Government-approved ID proof of the applicant.
2. Passport-sized photographs of the applicant.
3. Photograph of the shop or establishment with the applicant or owner.
4. Copy of the rental agreement if the establishment is a rented property.
5. Any utility bill of the working or establishment premises.

These documents help validate the authenticity of the business and the applicant while applying for the license.

Other documents needed as per the business entity or establishment

  • If it is a trust, a list of number of trustees
  • ROC
  • Memorandum of Association of the establishment
  • If it is a co-operative society, a complete list of the members and chairman are required
  • Address Proof of the applicant
  • Partnership deed with all needed requirements such as name, company name, and signature of the respective partner and share of each partner of the entity
  • RBI permission copy
  • A resolution regarding the beginning of the business of society
  • Certificate of incorporation under the Companies Act
  • Certificate of registration granted by the charity commissioner
  • list of designated directors and their nominations
  • Permission copy from RTO Transportation 
  • Food and drug license
  • FSSAI license
  • A copy of the permission from the Collector
  • NOC from the police department for a Cybercafe
  • IEC certificate
  • A certificate granted to the share broker by SEBI
  • NOC issued by the municipal corporation for starting a masala and flour mill
  • Excise license for starting a restaurant, beer bar  or wine shop
  • The license granted by the police department for commencing security services

The primary objectives of the Shop and Establishment License in India are as follows:

  1. Employee Rights and Benefits: The license aims to protect the rights and ensure benefits for employees working in both organized and unorganized sectors, such as establishments, hotels, and restaurants.

  2. Working Conditions: The license regulates various aspects of working conditions, including wages, holidays, incentives, and more, to establish better standards for the well-being of employees.

Registration Procedure for Obtaining Shop and Establishment License in India

To obtain a Shop and Establishment License in India, follow this registration procedure:

1. Download Application: Visit the official website of the respective state where your shop or establishment will operate. Download the application form.

2. Provide Details: Complete the application with required information, including establishment name, applicant's details, employee information, registered business premises address with NOC or rent agreement for rented premises, and applicant's PAN details.

3. Submit Application: Submit the filled application to the chief inspector responsible for shop establishment licenses. Pay the specified fees along with the application.

4. Verification: The submitted details and documents will be verified by higher authorities for compliance with the requirements of the Act.

5. License Issuance: If the submitted details and documents meet the Act's requirements, the Shop and Establishment License certificate will be issued to your establishment.

6. Processing Time: The entire process usually takes around 15-20 working days to complete. The duration may vary depending on the specific state.

This procedure ensures your business complies with regulations, enabling you to legally operate and uphold appropriate working conditions for employees.

FAQ

Frequently Asked Questions

It is mandatory for all shops and establishments to register under this Act, that too within 1 month or 30 days of the beginning of work. As it acts as a basic license and it is needed for all further operations like opening a bank account on the name of the establishment..
  • Any deduction from salary
  • A register containing all details of employment
  • Salary details
  • Advances details
  • Any fine applied
  • Holidays awarded to the workers
Yes, as per the Shop and Establishment Act, every establishment or business has to take approval from the Department of Labor before starting the business.
Documents related to yearly holidays and number of workers need to be submitted to the Municipal Corporation office annually.
Shop– According to the Act, Shop is a place that sells goods or services to the customer. It can also include offices, storerooms, warehouses or go downs.
Establishment– An Establishment engulfs all residential hotels, restaurants, theatres, commercial establishments, and other amusement for public entertainment.
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