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Is Your Business Eligible Under the Shops And Establishments Act?


Is Your Business Eligible Under the Shops And Establishments Act?

Shop and Establishment Act License is a type of Legal permission which legally allows us to do business in a particular place. If you have a physical shop or a office where the business is done, this license is a must. It gives you a proof of a particular business being done at that place.

According to the Act, a commercial establishment means and includes: Registered and unregistered charitable trusts or other trusts. A society registered under Societies Registration Act, 1860. An establishment that provides services or does office work. The Shop and Establishment License in India is promulgated by the state and it slightly varies 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.

The objectives of the Shops And Establishments Act are:

  • Provide statutory obligation and rights to employees and employers in the unorganized sector of employment, i.e., shops and establishments.

  • 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 who want to start an operation that 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, name 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 the Chief Inspector within fifteen days of the closing. The Chief Inspector will review the request for closure and remove the shop or commercial establishment from the register and cancel the registration certificate.

List of Various documents are required to obtain Shops And Establishments Act

  1. Aadhar card
  2. PAN Card
  3. An Address proof like electricity bill or an NOC from an owner
  4. Application letter in the prescribed format to the Municipal Corporation of Greater Mumbai
  5. Authority Letter for Business
  6. Form-A which is an application for Registration within 30 days of starting any work to the inspector of the area
  7. Government Prescribed Fees for a partnership Firm
  8. Partnership Deed
  9. Pan Card of the partnership firm

The 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. This act regulates areas such as working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, annual leave, maternity leave, sickness and casual leave, etc.

Shop Act Registration defines certain minimum parameters to ensure the safety of the workers and their rights to avoid their exploitation by the owners. It has laid down certain rules and regulations in the following:

  • Hours of work
  • Interval for rest and meals
  • Prohibition of employment of children
  • Employment of young person 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


Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.