Shop & Establishment Certificate

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Shop and Establishment Act Registration

Most of the businesses in India, including shops, restaurants, cafes, etc., are regulated under the provisions of the Shop and Establishment Act. To regulate the work environment and to ensure the rights of the workers are being protected, it is mandatory to get your business registered under the Shop and Establishments Act. However, the rules and regulations vary from state to state in; which the Act aims at providing proper working conditions to the labourers and taking care of their holidays, wages, and rights.

As per the Act, the establishment includes shops, commercial establishments, residential hotels, restraint, eating houses, theatres, or other places of public entertainment and also those establishments as notified by the State government in the official gazette.

A shop means any place or premises where goods are sold and services rendered to customers. It includes store-rooms, go-downs, warehouses or workplaces other than a factory, commercial establishment or other places used for public amusement and entertainment. The License is issued to the following establishments: -

  • Business
  • Trade
  • Professions registered under the Shop and Establishment Act

Eligibility to Obtain a Shop and Establishment License in India

  • Wholesalers or the retailer's shops and establishments
  • Service Centres
  • Warehouses, Storerooms, and go-downs
  • Additionally, any other working places
  • Hotels
  • Eateries and restaurants
  • Entertainment houses, Amusement parks, Theatres, etc.Bottom of Form

Benefits of Obtaining Shop and Establishment License

Legal Recognition

The Shops and Establishment license provides legal recognition to the respective establishment/shop.

Acts As a Business Proof

For further business registrations in India, the Shops and Establishment license acts as a business proof.

Helpful In Opening the Bank Accounts and Other Formalities

The registration of Shops and Establishments becomes necessary for reasons like opening a bank account in the name of an establishment/shop.

Provides A Platform for Raising New Investment

The Shops and Establishment license helps the proposed entrepreneur in raising investments through loans or venture capital for the proposed business establishment.

Avails The Government Benefits

By getting the shop and establishment license, the entrepreneur can avail of the government benefits in a different stage of business.

Saves Time

As the process of shop act registration has turned online, it saves time in the registration procedure as well as creates less hectic while in operation.

Documents required for obtaining the Shop and Establishment License

Below-mentioned Documents are required for Shop and Establishment License-

  • Id proof such as Aadhar card/PAN card/ voter identification card/ driving license of the employer.
  • Passport size photograph of the employer
  • The Affidavit, Cancelled cheque, and Bank statement,
  • A photo of the establishment/ shop along with the employer
  • In the case of rented property, a copy of the rent agreement
  • Any utility bill of the working premises.

Other Documents Required as Per the Establishment or Business Entity

  • In the case of a trust, a list of the number of trustees
  • Certificate of incorporation, MOA, and AOA as per the Companies Act
  • In the case of co-operative societies, a list of the number of members and chairman
  • Partnership deed with all the important information such as the name of the partners along with their signature and share percentage of partners.