Are you thinking about opening a small business? Do you know about the shop and establishment act? Almost all the businesses in India are regulated by shop and establishment act. The major objective of this act is to regulate the wages, holidays, terms of services, work conditions, maternity leave, description of labor, rules for employment of children, and others for people who employed in commercial and shops. It includes restaurants, bakeries, theaters, charitable trusts, societies, educational institution, and much more.
When your business falls under any of this category, you should do Shop and Establishment Registration within 30 days of the commencement regardless of a number of employees. Bear in mind that factories are not covered under this act because it comes under the Factories Act, 1948. As the business owner of the establishment or shop, you should register under this act to make sure your business is legal and safe. Keep on reading to know more information about the shop and establishment act.
How to get shops and establishment act license?
Are you going to start a shop or commercial establishment? Then, you should apply to the chief inspector for the shops and establishment act license within the prescribed time. Usually, it is applied within 30 days of commencement of business operation. The license application form should contain details such as name & address of the establishment/shop, name of employer, category of establishment, PAN card of the business owner, number employees and their details, and other related details.
Once the chief inspector verified and approves the application, he/she issues the registration certificate. You should display this registration certificate at the shop or establishment. Every now and then, you should renew the license according to the shop and establishment act. Based on the number of employees you hired, you must pay the registration fee. In case, if you are going to stop or shut down the business, then you should inform the chief inspector within 15 days of closing.
Upon reviewing the request for closure, the inspector will cancel the registration certificate and remove the same from the register as well. When you follow these things carefully, you will never face any hassle right from starting and closing your small business.
Documents required for registration:
- For Shop and Establishment License, you should have the following documents in your hands regardless of whether you are going to apply online or offline.
- BMC declaration
- Bank account number details
- Details of employer
- Address proof such as electricity bill
- Lease rent agreement or premises purchase agreement
- PAN card and Aadhar card
- List of directors/partners
- Memorandum and Articles of Association/partnership deed/trust deed
- Date of commencement of business
If you have filled the online form and attached the below mentioned document properly, then you will obtain the shop and establishment act license within 2 days. As soon as you get the license, you can start your small business immediately. If you have any doubt regarding this, then stay tuned with this site for more details.
