Shops Act

The Shops and Establishment Act is a state-level legislation that regulates the working conditions, hours, wages, holidays, and other aspects of shops and commercial establishments in India. The Act aims to protect the rights and interests of the employees and employers in these sectors. The Act also requires the shops and commercial establishments to register themselves under the respective state Act within 30 days of commencement of business.

• The owner or proprietor of an establishment (applicant) must apply for the registration in the prescribed form along with the prescribed fees. The application form and fees may vary from state to state.
• The applicant must provide the details of the establishment, such as name, address, nature of business, number of employees, etc. The applicant must also submit the required documents, such as PAN card, Aadhaar card, rent agreement, electricity bill, etc.
• The labour department of the state is responsible for processing and issuing the Shops and Establishment Registration Certificate or Shop License (Certificate). The Certificate is valid for a specified period and needs to be renewed periodically.
• The Certificate acts as a basic license for the business and serves as proof of the incorporation of the establishment. The Certificate is also required for obtaining many other business licenses and registrations, such as GST, FSSAI, trade license, etc. The Certificate is also useful for opening a current bank account, obtaining loans, and participating in public procurement.

• The registration ensures that the establishment complies with the rules and regulations of the Act and adheres to the standards of safety, health, and welfare of the employees and customers.
• The registration helps the establishment to avail various schemes and incentives offered by the government for the promotion and development of the sector.
• The registration also protects the establishment from any legal disputes or penalties that may arise due to non-compliance or violation of the Act.

The Shops and Establishment Act covers a wide range of establishments, such as shops, hotels, restaurants, theatres, cinemas, banks, insurance companies, educational institutions, medical and legal services, etc.

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