Shops and Establishments Act License in India | How To Get

Shops and Establishments Act License In India – An Overview

Shops and Establishment Act License in India have been enacted by the states to regulate conditions of work and to provide for statutory obligations of the employers and right of the employees in the un-organized sector of employment. Every shop and the establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.

Which Businesses Come Under Shops and Establishments Act License

Shops and Establishments Act LicenseThe Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any trade, business or profession is carried out. The act not only regulates the working of commercial establishments but also societies, charitable trusts, printing establishments, educational institutions run for gain and premises in which banking, insurance, stock or share brokerage is carried on. The Shop and Establishment Act in India is promulgated by the state and may slight differ from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.

  1. A commercial or trading or banking or insurance establishment, or
  2. An establishment or administrative service in which persons employed or mainly engaged in office work, or
  3. A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house or
  4. A theater, cinema or any other place of public amusement or entertainment.
  5. A shop where goods are sold, either by retail, wholesale, or where services are rendered to customers. It includes an office a store-room, godown, warehouse or workplace, whether in the same premises or otherwise, used in connection with such trade/ business.

Regulations Under Shops and Establishments Act License

This act lays down the following rules:

  • Working hours per day and week.
  • Guidelines for spread-over, rest interval, opening, and closing hours closed days, national and religious holidays, overtime work.
  • Rules for employment of children, young persons, and women.
  • Rules for annual leave, maternity leave, sickness and casual leave, etc.
  • Rules for employment and termination of service.
  • Maintenance of registers and records and display of notices.
  • Obligations of employers as well as employees.
  • Cleanliness, lighting and ventilation
  • Precautions against fire
  • Accidents
  • Record keeping

How To Apply For Shops and Establishments Act License Registration

Every business owners of any shops and establishments are compulsorily required to get the registration under the Shops and Establishment Act. Here are the following steps:

  1. Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application needs to be submitted along with the prescribed fees and should contain the following information:
  • Your name as the employer and the name of a manager, if any;
  • The postal address of your establishment;
  • The name of your establishment;
  • Telephone No
  • eMail Address
  • Nature of Business

2. Date of Commencement of Business
After receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate will be valid for 5 years and has to be renewed thereafter. After getting the certificate, you will need to display that at your premise.

If you want to close down your establishment, within 15 days of closing the establishment, notify to the Inspector in writing the date of such closure and return the registration certificate. After due verification, the Inspector shall remove the name of your establishment from the Register of Establishments and cancel your registration certificate.

Shops and Establishments Act License Fees Structure

Sl NoNumber Of EmployeesFees in INR
1Nill250
21 to 9500
310 to 193000
420 to 498000
550 to 9915000
6100 to 25030000
7251 to 50035000
8501 to 100045000
9above 100050000

This is a sample fees chart applicable in Bangalore. The rules under Shops and Establishments Act License vary for the different states. It is recommended to check the details with your state’s specific officer.