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Shop Act Registration

Shop Act Registration To Conduct Fair Business

The Shop Act is basically an Act that suggests that every owner of a shop or a commercial establishment should confirm that he or she possesses a Shop and Establishment License within a period of 30 days from the opening of that establishment. This license is gained by the Chief Inspector of that particular area. In case you have not so far got your Shop Act License, now is the right time to do so.

It is not at all difficult to obtain a Shop and Establishment Act License. All you need to do is fill up an application form, citing the employer’s name, address of the establishment, and type of the establishment accompanied by the total number of employees and other much-needed information.

No matter if you are working from home, you would require to obtain this license for your business. Right from cafeterias to hotels, cinemas, retail businesses, etc. every place is needed to list itself within a duration of 30 days. For instance, if you are commencing a business in Delhi, you can list your establishment at http://www.labour.delhigovt.nic.in/ser/.

What is the aim of the Shop and Establishment License?

Employees in the unorganized segment don’t have any other governing body to safeguard their rights and working environments are as they ought to be. This is the main reason behind executing the Shop Act License. Even though the rules of the Shop/Trade License differ from one state to another, it results in a certain amount of steadiness within a given zone – in terms of leaves provided, no. of working hours, expenses, etc.

The Shop and Establishment Act controls the working of businesses where any trade is conducted. It is not only applicable to commercial institutions but also to charitable trusts, educational institutions that are profit-run and other such premises those having a brokerage, stock or coverage activities that are carried out. A few of the areas that are included under the guidelines of the Shop and Establishments Act are the relaxation intermission for workers, hours of opening and closing, maternity leave, sick and causal leave together with rules concerning overtime work, national and religious declared holidays, and so forth.

Who all are included under the Shop and Establishment Act?

A shop is regarded as any premise where retail or wholesale products are traded or services are offered to individuals. Under this umbrella, the below-mentioned establishments come under the Shop and Establishments Act.



Cafeterias or eating outlets



Cinema houses and other such places of public entertainment

 official papers required for this procedure

The procedure varies from state to state, so you are required to visit the Labor Department to get more information. Though, a few of the documents that you would require to finish the registration procedure are as mentioned below.

  • Particulars of the Manager of the institution
  • Particulars of employees
  • Address proof and PAN card of the owner
  • Evidence of Establishment.

To provide evidence of establishment, the owner can make available any document from your lease act to energy or telephone bills. They may also demand the rent agreement at certain times.

Why Us?
FAQ For Shop Act Registration

As soon as you fill in the application form, submit it together with the essential documents. You are needed to collect a printed challan on imbursement of the set fees. Submit the challan together with the application form to the Chief Inspector of the particular area. The form will then be revised by the Chief Inspector and once this procedure is done, the shop or establishment will be certified and will obtain a certificate of registration. This usually needs around a week to be finished. The Indian government demands that henceforth the registration certificate be exhibited in the establishment or shop all the time in a projecting place and on expiry, should be suitably renewed.

Certainly, the license issue will be based upon submission of all compulsory necessities of the Act. The inspector may opt to visit the establishment at any given point of time to make sure that all the provisions have been realized. If this does not hold true, a fine is typically imposed on the establishment.

Yet, if an individual is looking forward to shutting down the institution due to lack of business, the owner has to deliver a letter to the Chief Inspector within a time frame of 15 days from the closing event, stating the issues being faced and the consequent decision to close down the business. On studying the owner’s letter, the Chief Inspector will abandon the registration certificate, eliminating the shop or establishment from the official register.

As per the Shop Act website (http://shopact.in/shop-act-fees/) no matter whether you are trying to register your shop/ establishment or are considering to renew its license, the charges required to be compensated will differ based on the total number of employees you have.

Establishments that have more than 100 employees have to reimburse a registration and renewal fee of around Rs. 6000 and a late payment of about Rs.3000. In many instances, though, the fee structure is dependent upon the kind of establishment you are running and not the sum total of employees you have hired. For example, as per the Madhya Pradesh Government website the cost of registering and renewing the Shop License is fairly unlike the above-mentioned structure.

So, if you have decided to start a shop or an establishment that would come under the Shop Act, you need to go ahead and check the necessities to register yourself for a Shop and Establishments License right away.