Shop & Establishment License has to be taken by every shop and establishment within 30 days of commencement of business. This license is issued by Labour department of State Government. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.
As per common convention, a ‘shop’ includes any premises in which buying or selling of goods and services occur and where goods are stored for later use. It also includes establishments for entertainment and public amusement. For anyone wishing to enter into retail business, registering a shop or establishment is a mandatory step.
Eligibility Under Shop And Establishment Act
The Shop and Establishment Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places, come under the purview of the Act.
Advantages of the Shop & Establishment Registration
- 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.
- Passport size photo of the applicant.
- Photo of the shop along with the owner.
- List of management employees and directors, if applicable.
- Details of the company, employees, and their wage rates
- Address proof of establishment
- Affidavit to be shared with the applicant
Process for changing or renewing the Shop and Establishment registration
Each individual needs to apply for Registration renewal within the 15 days of the date of expiry. The below steps can be followed in order to renew the Shop and Establishment registration license online.
1. Firstly log on and choose from the drop down menu as necessary.
2. Use the login credentials at the time of registration and fill in details for the application of renewal and submit.
3. Following which you can use the application ID and appeal for a shop and establishment license renewal. Automatically the form will prompt you to upload all the registration documents once again.
4. Post uploading, the renewal fees has to be paid.
5. Now your renewal application status will change to “Under Scrutiny”. It will take about one week for the process to reflect as completed.
6. On completion of the process, the certificate is now ready to download. The same is available on the right side of the computer screen.
Amendment in Shops & Establishment Registration
If there is any change in details submitted at the time of making an application, such as a change in address, the employer is required to apply for an amendment in Shops & Establishment Registration Certificate with the concerned officer, within the prescribed time. In case of closure of the establishment, the employer is required to apply for surrender of the certificate to the respective officer. The officer on being satisfied with the correctness of the application will issue a fresh Registration Certificate for amendment or will serve an order for the cancellation of an existing registration.
Frequently Asked Questions (FAQ):
QUS:-When is a Shops and Establishments Act license required?
Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.
QUS:-What are the records to be maintained under the Shops and Establishment Act?
Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.
QUS:-Our’s will be a registered private limited company having registered office in Karnataka. Do we also need to get Shop Licence?
The shop & establishment act is applicable to every office and shop where commercial activities are carried on even on employing one employee. Your Office /Corporate office will be covered under the Shop & Establishment Act. and the provision of leave and other rules shall be applicable, even when your company is registered under companies Act.