The Shop and Establishment license is a mandatory document or licenses to be held by the local business structure prior to operating or regulating the day-to-day business activity in the given state.

Similar to SSI registration for micro, small, and medium industries the shop and commercial establishment registration under the municipal border of a particular state. It is one of the mandatory and important registration for the new business and establishment for the smooth running of their business activity.

Shop and establishment registration is compulsory for all the hotels, shops, theatres, and complexes that provide consumable goods to the customers.

The shop is any place where the producer/supplier offers the customer some amount of services in a variety of forms which includes, offices, warehouses, stores, etc. the shops can be individual or in chains

Structures and establishments come under SHOP and ESTABLISHMENT Registration-

All the medium and small scale direct service provider comes under shop and establishment act as mentioned below:

• Stores and shops.
• Hotels
• Clubs and self-help group establishment
• Professionals as auditors and contractors.
• Theatres and complexes
• Cafes and restaurants, etc.

Who needs to register for the shop and establishment act?

Any shop or commercial establishment which is working and providing goods or services in any form in the municipal boundaries of states of India is obligated to the state government to register their organization under the shop and establishment act.

After the full establishment of the structure, the shopkeeper or the owner must register their organization within 30 day period of working.

It is not just mandatory government procedure and works to register your shops, theatres, and stores, as there are a variety of schemes and subsidiaries, availed to the registered business structures under this act as follows:

• Provides a separate legal entity to the business structure.
• Applicable to sue a case in legislation on the behalf of the shop, store, establishment, etc.
• The shop and establishment certificate helps in acquiring banking services.
• Availability and enjoy the state subsidiaries and concessions.
• Identity to the business structure.
• Facilitates smooth inspection and auditory work.
• Government schemes.

Purpose of registering shops and commercial establishments -

The main aim behind the shop and establishment act is to protect the employee and the employer from unfair practices. The scheme supervises the shop in the terms of employee benefits and welfare along with protection to the employer.

The shop and establishment license supervises :

• Regular wages and compensations.
• Paid leaves with weekly off days.
• Prohibition for allocating women and underage kids under dangerous workplace.
• Working atmosphere.
• Refreshment and rest intervals.

Every working and operating organization is required to register their shops and establishment under the Shop & Establishment act which can be done online or offline in the registrar’s office. There are certain important documents and papers which are required while filling the registration application as follows:

• Address proof of the applicant along with the address of the structure.
• Affidavit mentioning the type of establishment and detailed information of the business structure.
• MoA and article of association
• Proof and certificate for structure establishment.
• Financial status and bank statement of the shop or establishment.
• IT return papers and Capital Tax Receipt incurred accrual or deferral.
• Legal documents related to the structure.
• Identity proof the owner or applicant.
• Partners’ deed and consent. ( if any)
• Lease Deed of the following establishment.
• No objection certificate is highlighted with the owner of the property.
• No illegal activity is held on the property certificate with the owner’s self-assessed signature.

Open the official registration website in your desired browser.

• Click on the new registration and fill the areas with the correct information.
• Verify your information with an OTP on your registered number.
• Fill in the rest of the fields and upload the required files.
• Pay the registration fees. ( however, the registration fee differs based on the type of structure, the total number of working employees, etc.)
• After successfully paying for the charges, submit the newly generated challan number with information mentioned in the blank areas. After completing this step the registration application has been submitted for the shop and establishment registration.

As the registration for the shop and establishment registration is valid only for up to 5 fiscal years from the day of registration. That is why every shop and the commercial establishment is required to renew their registration for the establishment prior to the due date or face the additional late charges along with the renewal fees.

The process of the renewal is slightly different from the registration of the structure before.

• Login to the site with a previously used id and password.
• Select the shop and establishment renewal.
• After renewal makes the payment and submits the form.
• Later, the renewal payment a certificate of renewal will be generated automatically.