Shop License


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Shops are something which is associated with almost everybody’s day to day life. Almost all the shops that we see in our daily routine life are subject to shop & establishments registration. The sole purpose of this act is to regulate the functioning of small & medium sized shops, wage payment, terms of service and various other working conditions in a shop. As per the shops & establishments act, one must mandatorily possess a shop license to proceed with the said business in the area.

What is a “Shop or an establishment”?

Shop & establishment act defines shops as those premises where the sale of goods or service is undertaken either in the retail or wholesale format. Whereas, a shop, commercial establishment, hotel, theatre or amusement park etc. all of these form a part of establishment.

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Who is required to get shop license?

Following category of business owners need to have a shop license before starting their business operations.

  • Retail shops
  • Wholesale shops
  • Commercial establishments
  • Warehouse, godown or storeroom.
  • Entertainment & amusement theatres
  • Corporate office where services are rendered.

What is the shop registration process in India?

Every state in India has a separate law that governs the shop registration and hence different shop registration process differs from state to state but broad guidelines for shop registration the same throughout. Some of the typical steps involved in getting shop registration certificate are as follows:

  1. Submission of application: within initial 30 days of business operation a business entity must apply for the shop license. The application can be made in person or one can submit the fill the form by visiting the state department of labour official web portal.
  2. Registration fee & document submission: Along with the application a certain set of supporting documents also needs to be uploaded so as to verify the application. Therefore following list of document needs to be submitted along with the registration fee.
  3. Name of the shop with photographic proof of business name board & entrance.
  4. Memorandum & articles of association (if any); generally in case of LLP or company.
  5. PAN details of so formed business entity.
  6. Owner identity proof (if rented property).
  7. Directors list with identity & address proof.
  8. Complete details of existing employees.
  • Inspection: Chief inspection officer from the labour department of state must be present at the site for the purpose of inspection. Only on being satisfied with the site location and details mentioned in your application form, the officer will prepare his report.
  • Shop registration certificate: After successful inspection by the officer, you will get registration approval that day only and the physical shop registration certificate will be issued within minimum time period.

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The provisions of shop & establishment act do not apply to:

  • Establishment used to treat infirm, destitute or mentally unfit for the role.
  • A worker who is at the supervisory or managerial level
  • Office of central/state government or local authority
  • A worker who holds a confidential position
  • Office of RBI

Opening a shop has been much easy as compared to a company registration or a LLP. But still there are certain grey areas where an individual needs to consult a financial & legal expert to put things to work. CAonWEB will help you and make it easy to get shop registration certificate so that an individual need start their business operation on time.

Get in touch with our legal experts about shop registration certificate and the most effective shop registration process in India.

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