A Shop and Establishment Act License is a type of Legal permission that allows us to conduct business in a particular location. If you have a physical shop or office where the company is performed, this license is required. It provides proof of a specific business being conducted at that location.
According to the Act, a commercial establishment means and includes Registered and unregistered charitable trusts, as well as other trusts. A society registered under the Societies Registration Act, 1860. An establishment that provides services or does office work. The Shop and Establishment License in India is issued by the state, and varies slightly from state to state. However, as per the respective Shop and Establishments Act, all shops and commercial establishments operating within each state are covered.
The objectives of the Shopandnd Establishments Act are:
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Provide statutory obligations and rights to employees and employers in the unorganized sector of employment, i.e., shops and establishments.
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Regulate the conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theaters, and other places of public entertainment.
If a shop establishment or commercial establishment wants to start an noperation, it must apply to the Chief Inspector for a Shop and Establishment Act License within the stipulated time. The application for Shop Act license in the prescribed form must contain the name of the employer, address of the establishment, category of the establishment, number of employees, and other relevant details as requested. On submission of the application and review by the Chief Inspector, the shop or commercial establishment will be registered, and a registration certificate will be issued to the occupier. The Shop Act Registration certificate must be prominently displayed at the shop or commercial establishment and renewed periodically, as per the Act.
If you wish to close down the shop or any commercial establishment, you must write to the Chief Inspector within fifteen days of the closing. The Chief Inspector will review the request for closure, remove the shop or commercial establishment from the register, and cancel the registration certificate.
A list of Various documents is required to obtain the Shops and Establishments Act.
- Aadhaar card
- PAN Card
- An Address proof likean electricity bill or an NOC from the owner
- Application letter in the prescribed format to the Municipal Corporation of Greater Mumbai
- Authority Letter for Business
- Form-,A which is an application for Registration within 30 days of starting any wo,rk to the inspector of the area
- Government Prescribed Fees for a Partnership Firm
- Partnership Deed
- Pan Card of the partnership firm
The Department of Labor regulates the Shop and Establishment Act and regulates premises wherein any trade, business, or profession is carried out. TActact not only regulates the working of commercial establishments, but also societies, charitable trusts, printing establishments, educational institutions run for gai,n and premises in which banking, insurance, stock or share brokerage is carried onThThe Actregulates areas such as working hours, resintervalsal for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules fothe r employment of children, annual leave, maternity leave, sickness and casual leave, etc.
Shop Act Registration defines specific minimum parameters to ensure the safety of workers and their rights, thereby preventing exploitation by owners. It has laid down specific rules and regulations in the following:
- Hours of work
- Interval for rest and meals
- Prohibition ofthe employment of children
- Employment of young people or women
- Opening and closing hours
- Close days
- Weekly holidays
- Wages for holidays
- Time and conditions of payment of wages
- Deductions from wages
- Leave policy
- Dismissal
- Cleanliness
- Lighting and ventilation
- Precautions against fire
- Accidents
- Record keeping
