Shop Act Registration

Register your Business Today Under Shop Act and legalise your Business

RS. 199*/-

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Shop Act Registration






What is Shop Act Registration?

  • To govern the rights and working conditions of employees that are working in an unorganized sector the Shop Act in India was implemented.
  • The act states that all commercial establishments like theatres, cinema halls, hotels, amusement parks, shops, etc. to apply for the registration within 30 days of commencement of the business.
  • To open a current account in a bank this act is mandatory for the owner of the establishment.
  • The license forms as a basic license and a proof of business which can be used for other registrations to run a business.
  • The basic Shop & Establishment Registration procedure remains the same even each state have different rules and regulation for submitting the registration application.
  • Approval from the Department of labour is required in this Act for every establishment.
  • The registration certificate is provided by the Chief Inspector or from other inspectors to the area where you run the establishment.
  • An application, in the prescribed format which is obtained from the government websites of different States, requires to be submitted to the inspector in charge, with:
  1. Shop or Establishment Details including the name and details of the owner and the workers.
  2. The address of the shop or Establishment and a rental agreement (In case of rented property) or sale deed (In case of Owner) for the shop.
  3. PAN card of the owner
  • This all to be submitted along with the prescribed fees to the inspector.
  • The inspector will check all the details above Once the application is received, He will make a visit to the establishment, if required, thereafter he will provide a Shop Act registration certificate.
  • Any changes made at the time of establishments need to be informed to the inspector within 15 days.

Shop Act Registration Package

Free Consultation

Draft Application

File Application

Government Fees

Speed Filing

Benefits of Shop Act Registration

Easy to Open Bank Account

He can open a current account in the bank by showing a shop act registration license

No Ad hoc Enquiry

He will be free from an Inspector from the state in case of unexpected visits.

Legal Business

The Shop act registration is governed by the state law passed by state Government

Nominal Renew Fees

The Registration cost under shop is very low and it's doesn't create any type of financial bundle or liability on the owner of the business..

No Compliance cost

After the registration the registered applicant is not required to file any type of monthly or quarterly or half or yearly returns who employ less than 10 employees.

Business GoodWill

The Shop Registration increased the confidence of the consumer in the product & services of the Business organisation and that thing leads to generate the Goodwill.

Duties of The Employer After Shop Act Registration

Common Provisions

  • The shop should not be open before 8:30 am and after 8:30 pm.
  • Every Shop should close the shop on all the Sundays & other notified festival holidays.
  • Employees must be allowed to take 1 day leave in a week.
  • Employees should get overtime wages for the work done more than 8 hours by him.
  • Letter of Appointment should be given to all the employees.
  • Every shop that has 10 or more workers shall be sent a periodical return in form no. XXVII at the month end of March, June, September & December of every year.
  • Every shop is required to furnish the information to the inspector notified under the Act on demand.
  • If the working-age is below 14 he shall not be required or allowed to work in any Shop & Establishment.

Special Provisions to Women’s Employees

  • Women Employees need not work before 6:00 am and after 8:30 pm.
  • Six weeks paid leaves shall be allowed to the women employee immediately preceding the date of delivery and after the date of delivery, they shall allow for six weeks paid leaves.

Rights of The Employees After Shop Act Registration

  • For the term of work offered to the employees is entitled to receive the wages.
  • Annually they are allowed to take leave of 15 days with wages also they are entitled to 12 days casual leave and 12 days leave when they are sick.
  • They are allowed to receive overtime wages for the work beyond the normal time.
  • They are allowed for a weekly holiday with wages and also notified Festival Holidays from time to time.
  • An employee who has worked in an organization for the period not less than one year will be eligible for service compensation at 15 days of average wages of each year.

Objectives of The Shop Act Registration

  • The main objectives of the Shop Act registration are to secure equal benefits for employees working in various sectors in an organized manner for the Shop, commercial establishments, and residential hotels to restaurants, theatres and other places of public amusement or entertainment, etc.
  • The Shop and Establishment registration focus to regulate the day-to-day treatment of workers and set a standard for employment opportunities.

Procedure For Shop and Establishment Act Registration

Collection of document

  • We send the list of Documents (checklist).
  • We prepare the Digital Signature.
  • We provide attestation and notarization of Documents.
  • We check the Documents thoroughly and follow-up with you.

Drafting of Application

  • We draft your Shop act registration Application.
  • The Application includes the details of establishment or shop, owner or employer, office address, contact number, email Id, Products or services, employees, Working environment etc.

Filling of Application

  • The Application submit to the registering authority with relevant fees.
  • The Authority issued us SRN (Service Request Number) for further tracking of application processing.

Follow up

  • We do proper follow up If the departments demands any documents or information corresponding to the submitted application;
  • We submit the requisite or demanded information or documents with the registering department.

Issue of Shop Act Certificate

  • The Department issued the shop act registration certificate after his satisfaction.
  • The Certificate includes the name of the business, address, Registration Number & products or service.
  • The Department takes a maximum of 3 working days to issue a certificate.

Government Fees for Shop Act Registration

Here are the fees for shop act registration in a tabular form.

Number of Employees under shop establishments

Registration Fees

In (Rs)

Renewal Fees

In (Rs)

Late Fees(50% of Registration Fees)

In (Rs)

120

120

60

1 to 5

360

360

180

6 to 10

720

720

360

11 to 20

1200

1200

600

21 to 50

2400

2400

1200

51 to 100

4200

4200

2100

>100

5400

5400

2700

Document Required For Shop Act Registration

Common Documents

  • Proof of identity which includes (PAN Card/Aadhar Card/Passport/Driving License/Election/Voters ID)
  • Proof of Address which includes (Telephone bill/Rent Receipt/Electricity bill/Notarized Leave and License/Property Tax Paid Receipt/Sale or Purchase Deed/Society Maintenance Receipt?

Other Documents any 1 to be submitted-

  • Copy of License
  • Copy of Registration which is mandatory under any law from any authority for commencement of Business.

Mandatory Documents to be submitted-

  • Annexure A which include Self Declaration
  • Annexure B which includes Self Declaration for Self-Attestation.
  • Original Photo of the establishment in which the name of the establishment appears.
  • Identity Verification Documents- (Anyone) to be submitted
  • Registrar of Companies (ROC)
  • Memorandum of Association (MOA)
  • List of the Trustees or Member of Trust
  • Registered Proof of Address
  • Resolution of society regarding the commencement of business
  • List of the Chairman and Member of CHS.
  • List of Directors and Resolution of Nomination of Directors
  • Copy of RC (Registration Certificate) given by Charity Commissioner
  • Incorporation Certificate, Commencement Certificate under the Companies Act, 2013.
  • Partnership Deed (To be uploaded which consists the name of partners, Business/Company Name, the signature of partners, percentage of partners)

Name of Business Verification – Anyone to be submitted for shop act registration documents.

  • RTO Transport Permit
  • Copy of Collector Permission
  • License from the Agriculture Department
  • Food Licence from concern authority
  • RBI Permission Copy
  • The Food and Drugs Administration License
  • No Objection Certificate (NOC) from the Police Department for Cyber café
  • IEC certificate for Import-Export business
  • Certificate issued by Securities Exchange Board of India (SEBI) for share broker
  • No objection Certificate by Municipal Corporation for floor mill or masala mill
  • Copy of Excise license for a wine shop or Bar and Restaurant.

Who can apply for Shop Act Registration of a Design?

The  application for Shop Act registration is made by the following person are:-

Important Notes

    • In case of Artificial person (like Company), the application signed & filed by the Authorised person or Director or Board of Directors & Design registered on the name of the Artificial person.
    • First we have to know that what Shop Act License is. Each state in India provides guidelines to which most companies in India are liable to be registered in the Shop and Establishment Act.
    • The Act’s main purpose is to control the instalment of wages under establishment act, long periods of work, leaves, and other kinds of work states of persons being utilized in shop and business foundations. 
    • The Shop Act License regulates various banking sectors, educational institutions, and working commercially.
    • The big benefit of this Act is that it makes sure that employees are getting the benefit of leaves, Hygiene issues, holidays, sickness, etc.

Benefits For Registration of A Shop As Start-Up

Low Cost of Registration

Ease in raising funds

Tax Holiday

Business Tax Benefits

Access to Research and development

Access Government Tenders

Importance Shop Act Registration

  • You have to make an important priority for yourself to get shop act registration if you are an owner of a shop and the number of employees exceeds 9 but you do not have a shop registration
  • You would like to know that if you registered for the shop then you can take advantage of many benefits that are given to the registered shops in India. 

In India, there are following ways in which a Shop can get registration they are

  1. One can register a shop as a business entity in India.
  2. One can register a shop as a StartUp in India.
  3. One can register a shop as an MSME Enterprise in India.
  4. One can register the shop under the shop and establishment act of the respective state In India.

Details about the method of a Shop registration

 

  • If you choose to register as a business entity, then you can register your firm as a Private Limited Company, LLP, Partnership, and OPC, etc. and apply by visiting the website of the Ministry Of Corporate Affairs.
  • If you choose to register your shop as a Start-Up Then first you have to register as Business Entity and then you have to visit the website of start-up India in that you have to fill a simple form and complete all the instructions and formalities and your shop will be registered as a Start-up.
  • If you choose to register your shop as an MSME Enterprise then there is a website namely, the Udyog Aadhar website you have to visit that website and fill the application for registration as MSME and upload all necessary documents to complete the registration process.
  • A person becomes legally responsible for all aspects of his shops when the person opens a Shop, including any debts and losses. 
  • If someone registers his shop as a company then he can get a company’s feature that is the separate legal entity which means that Company and persons are different. This feature helps to protect the personal assets from shop assets.
  • If someone registers the shop in the name of the partnership then he can share profit and losses equally and if someone registers the shop as LLP then it will only protect the Partner’s assets from the liabilities of the shops.

Aaple Sarkar Maharashtra Shop and Establishment Act

Applicability

  • If the business locations are located within municipal limits Shop Act Registration is a mandatory requirement.
  • It is applicable for work from home business as well as residential premises.
  • Shop Act Registration is fully based on the number of employees you will have.

Working Hours

  • As per the rule of the shop act it is required to state the working hours, and weekly holidays.
  • It is required to display in advance a shift schedule of the respective employee with their alternate weekly holiday.

Health & Safety

  • The one thing which comes under the act is to be strictly followed which is keeping the establishment clean and hygiene. There should be any dirt and garbage on the premises.
  • The premises should have precautions from the fire to protect the premises and employees from the danger of fire.

Closure of Shops

  • Within 30 days of the closure of the shops, the employer has to notify the shop act authority 
  • There will be an application form that is to be filled by the employer and he has to submit physically to the respective shop act registration authority.
  • The authority on receipt of the application and after proper verification of the forms will remove the name of the establishment from the register of establishments and cancel the shop registration certificate.

Records & Registers

  • Every employer is required to maintain a wage register in the prescribed format. It can be maintained either electronically or manually.
  • The register should be authenticated digitally by the employer or any manager who has the authority.
  • After completion of overtime, the entries of overtime should be recorded immediately 

Renewal

  • If the number of employees exceeds 9 then such shops are required to apply for Shop Act Registration and all the provisions and sections of registration will apply to such establishments.
  • In the case of Shop Act Registration, the shops should apply for renewal of the certificate within 30 days before its expiry.

Shop Registration Certificate

  • It’s the certificate issued by the departments after verifying all the details of the application. This certificate can be used for opening bank current accounts and all legal purposes for the opening of such other businesses.

FAQ

Shop Act Registration

Shop act registration is a state-based registration that all commercial establishments like theatres, cinema halls, hotels, amusement parks, eating houses, shops, etc. to apply for the registration within 30 days of commencement of the business.

 

One should qualify the Establishment definition for the purpose of Shop Registration Act. So if you want to have a shop act license you have to apply to Bombay Shops and Establishment Act, 2018.

Shop Act Registration has exempted the Governments.

The answer is a big NO, every state has different laws for shop act registration. e.g. For Maharashtra, there is Bombay Shops and Establishments Act, 2018, for Delhi the act is Delhi Shops and Establishments Act, 1954, for the state of Karnataka the act is Karnataka Shops and Establishments Act, 1961, etc.

As per the guidelines from the state law shops has to work and to secure equal benefits for workers who are working in different establishments.

Every shop registration certificate must be renewed before 30 days with its expiry which is by 1st December every year.

Yes there is a late fee for submission of an application that will be 50% of the fee prescribed as mentioned above.

The Shop Act Registration is state legislation and each state has drafted rules applicable to a particular state the most common in the act is that it applies to every person in an establishment, whether with wages or without wages.

Shop act has been implemented for the better seeking of the working conditions and employment opportunities in shops, commercial establishments, cinema halls, restaurants, eating joints, hotels, theatres, etc.

He shall be punishable for 1st offense with fines up to Rs.100 for 2nd offense fine with Rs.250 which can extend to Rs.500 and for 3rd offense imprisonment for 3 months with fine Rs.500 or which can extend up to Rs.1000.

Payment of application can be made:

E-Seva at Hyderabad and Vishakhapatnam.

Bank challans at the respective branches.

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