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Let’s have some basic information regarding shop and establishment registration so you may start your little or large business.

Why should you register under Shops and Establishment act?

The goal is to ensure that employees working in various institutions, such as stores, commercial enterprises, and residential hotels, receive uniform benefits, as well as restaurants, theatres, and other places of public enjoyment or entertainment. If you wish to register your store under the Shop and Establishment Act, regardless of how small or large your business is, you must visit the website or a State government office to complete the registration formality in a method defined by the State Government. Every Indian state has adopted laws and regulations governing working conditions.

Shop and Establishment Registration's Applicability

Within 30 days of starting operation, every store and establishment must register compulsorily under this Act. Many other licenses demand this as proof of a commercial enterprise because it is such a simple licenses. If you wish to create a current account, for example, most banks will need you to provide it.

To get this licenses, you must give the business owner’s or the company’s PAN card, a copy of the leasing agreement or sale deed, and the names and addresses of all workers. Shops, commercial businesses, residential hotels, clubs, restaurants, dining houses, theatres, and other places of public enjoyment or entertainment are all covered by the Act.

Enrollment under Shop and Establishment Act

The Shop and Establishment Act registration controls the hours of work, salary , leave, vacations, terms and conditions, and other working conditions of persons employed in shops, commercial establishments, establishments for public entertainment or amusement, and other establishments, as well as certain matters related to them.

Except for those who are covered by the Factories Act of 1948, this registration is required for every location of business. It is a state regulation, and each state has its own set of rules for shops and establishments.

Benefits of Shops and Establishment enrollment

  • Legal Entity Evidence – A legal entity proof, such as a proprietorship firm or a partnership company, was necessary for each store or business. A legal entity evidence that grants you permission to conduct business in your area or state.
  • Business Bank Account – To create a current bank account, every bank requires confirmation of legal entity. According to RBI regulations, each store and establishment must create a separate bank account for everyday transactions. As a result, you may quickly create a current business bank account using the store certificate.
  • Smooth inspections – The state government and local municipalities undertake frequent inspections to ensure that businesses and establishments are operating properly and that licenses are in order. If you have a Shop Act licenses, you will be able to breeze through the inspections every time.
  • Government Benefits – Each state has a DIC Department that develops policies for all small businesses in that state. You can easily get government benefits if you have a Shop License Registration Certificate.

Required Documents for Shop and Establishment enrollment

  1. At the entryway, a photograph of the shop or establishment with a name board in the local language is shown.
  2. Certificate of Incorporation, Memorandum of Association, and Annual Operating Agreement (AOA) of the Company or LLP.
  3. a copy of your PAN card
  4. List of Directors or Partners, along with  their identity and address.
  5. Copy of the Board Resolution or the Consent of the Partners.
  6. Company/LLP/Partnership/Proprietorship proof of address.
  7. If there are any employees, provide information about them.

Any changes to the Shop and Establishment Act registration should be reported to the appropriate official within the timeframe. In the event that the business is closed, the employer must notify the appropriate authority and request for the registration to be surrendered. When the officer is satisfied that the application is valid, he or she will pass an order cancelling the current registration and issuing a new Registration Certificate.

Ready to Get Started?