Service Details

Shop And Establishment

What is the Shop and Establishment Act?

The Shop & Establishment Certificate describes a type of legal permission to business, the right to perform work in a particular state or place. It is essential to obtain a Certificate for an individual who has their own shop, office, factory, Godown etc. The licensing acts as legal proof of a specific business being done at that place.
The Shop and Establishment Act in India is encouraged by the state governments, but it is a bit different from state to state. Hence, all the commercial establishments and shops operating within each state must register themselves under the Shop and Establishment Act within 30 days of business commencement otherwise heavy penalties will be levied by the labour departments.

What is the Applicability of the Shop and Establishment Act?

The New Shop & Establishment Certificate applies to all shops, eating houses, restaurants, hotels, public places, entertainment and amusement, theatres, and other commercial establishments. All the mentioned establishments need to be registered under the Act within 30 days of the beginning of work.

What are the benefits of the Shop and Establishment Act?

  • The shop and establishment registration certificate acts as a legal entity proof that gives businesses the right to conduct business in a specific state.
  • This Certificate acts as legal proof for opening a current account, gaining customer’s trust, showing credibility of businesses
  • The Shop and Commercial Establishment Certificate opens the gateway to the government benefits for small businesses which are set up by the department of industries and commerce.
  • Using the FSSAI Logo:-

Once you have the license, you are undoubtedly using the FSSAI logo in your menu cards and also on the pamphlets in order to publicize your food’s superior quality over others. This moreover gives you an edge over the various food operators who are not having a food license. All your packages of food are required to have a food license. The logo is seen as the symbol of validity and also for assurance by the consumers. Hence the selective customers want to consume food products specifically those who are having the license.

  • Business expansion:-

When the time comes for your business to expand in other areas or outlets, you can easily do so with the use of your FSSAI License. The license will help you to establish your good reputation and also qualification to grow your business in the new direction with ease. However, with a license, it will be easier for you to get bank loans and funding which is essential for expansion

Which are the essential documents required to obtain a New Shop Act License?

To register your shop or establishment under the Shop Act Registration. We need a number of documents required to be submitted for this registration which is as indexed below:-

  • Aadhar Card
  • PAN Card
  • Address proof like NOC/Lease agreement from the owner and the electricity bil
  • PAN card of the Firm/Company
  • Proprietor’s/Partner’s/Director’s ID proof and address proof
  • MOA/AOA/Partnership deed

Process:

  • Step 1:- Application filing:
If any individual engaged himself or herself in any business activity like opening shops, factories, offices, godown or office then they have to file the application for Shop & establishment Registration with the labour inspector within the specified time period.
  • Step 2:- Application Submission:
After filing an application online, a certain amount should be paid to the state government for application submission. After submitting the application, the labour inspector will review the application, inspect the place for issuing the final certificate.
  • Step 3:- Certificate issued:
After successfully reviewing the application, the labour inspector will approve the application and a registration certificate will be issued.
  • Step 4:- Display on shop:

The New Shop Act Certificate issued should be clearly displayed at the shop or commercial establishment and must be renewed on time under this act.

  • Step 4:- Display on shop:

The New Shop Act Certificate issued should be clearly displayed at the shop or commercial establishment and must be renewed on time under this act.

FAQs

Common Questions About Our Consulting Services

When is the shop and establishment act license required?

Every shop and establishment needs to be registered itself compulsorily under this act within 30 days of the beginning of work. This is proof of commercial business.

Yes, every shop act registration needs to be renewed on yearly basis depending on the state.

Under the Shop Act, the premises governed include restaurants, shops, residential hotels, clubs, commercial establishments, eating houses, and other places for public entertainment or amusement.

No, all premises are run by the GOI, and state governments are exempted from the provisions of the Shops and Commercial Establishment Act.

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