Summary
We at VGC can help you register your shop and establishment Act Registration.
One of the important regulation to which most businesses in India are subject to is the Shop and Establishment Act, enacted by every state in India. The Shop and Establishment (S&E) Act is applicable on all the commercial establishments; viz, business centers, offices, warehouses, stores, hotels, eateries, amusement parks, theatres, etc, nationwide. It is one of the most important regulations required to be complied with for any business. The Act is designed to regulate payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in shop and commercial establishments.
The Shop and Establishment Act in India is promulgated by the State and may slightly differ from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.
- Shop": Shop means any premises where
- Goods are sold, either by retail, wholesale, or
- Services are rendered to customers.
It includes an office, a store-room, godown, warehouse, or workplace, whether on the same premises or otherwise, used in connection with such trade/business. A shop however does not include a factory or a commercial establishment.
- Commercial Establishment: Commercial establishment means
- A premise where any trade, business, profession or any work is undertaken,
- which may include society, charitable or another trust, journalistic and printing establishments, contractors and auditors establishments, educational institutes, premises where the business of banking, insurance stocks, and shares, the brokerage is undertaken, restaurants and eating houses, residential hotels, clubs, theatres and other places of public amusement or entertainment.
Establishments are defined as shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment. Further, establishments as defined by the Act may also include such other establishments as defined by the Government by notification in the Official Gazette. However, factories are not covered by the shops & establishments Act and are regulated by the Factories Act, 1948
License under Shop and Establishment Act, 1948
Any shop or commercial establishment that commences operation must apply to the Chief Inspector for a Shop and Establishment Act License within the prescribed time.
The application for license in the prescribed form must contain:
- The name of the employer
- Address of the establishment,
- Name of the establishment,
- Category of the establishment,
- Number of employees and
- Other relevant details as requested.
On submission of the application and review by the Chief Inspector, the shop or commercial establishment will be registered and a registration certificate will be issued to the occupier. The registration certificate must be prominently displayed at the shop or commercial establishment and renewed periodically, as per the Act.
Procedures
Procedure for obtaining the Shop and Establishment Registration Certificate
The procedure for obtaining the Shop and Establishment Registration Certificate differs from state to state. It can be obtained online or offline.
- For obtaining the registration certificate online, the proprietor or owner of the shop or business must log into the respective State Labour Department website.
- The proprietor or owner must fill the application form for the registration under the Shop and Establishment Act, upload the documents and pay the prescribed fees
- The prescribed fees differ from state to state. Once the registration form is approved, the registration certificate will be issued online to the proprietor or owner of the business.
- For obtaining the registration certificate offline, the registration application is to be filled and submitted to the Chief Inspector of the concerned area along with the prescribed fees.
- The Chief Inspector will issue the registration certificate to the owner or proprietor after being satisfied with the correctness of the application.
- The registration application form contains the details relating to the name of the employer and establishment, address and category of the establishment, number of employees and other relevant details as required.
- The registration application needs to be renewed before the expiry of the period of registration. The validity of the Shop and Establishment Certificate differs from state to state. Some states provide the Certificate valid for a lifetime, while other states provide the Certificate valid for one to five years.