Domiyance Finance Consultancy LLP

Shop & establishment
Registration/Renewal

very commercial establishment in India must have Shop & Establishment Registration in place before commencing business activities. The provisions for shop and establishment registration differ state-wise. Contact us for obtaining registration or renewal with the labour department for your business.

Shops and Establishments Registration

When you start a business establishment, except industries and factories, you must register it with the state government’s Department of Labour under the Shops and Establishments Act. This Act regulates working and employment conditions in stores and commercial establishments. The registration falls under the purview of the State Labour Departments, and are granted under the state specific Shops & Establishment laws.

‘Shop’ means any premises where any company or operation is carried on or where facilities are offered to customers including offices, stores, godowns, or warehouses, whether at the same location or elsewhere, utilized in conjunction with such company or trade.

Commercial establishment means any premises wherein any business, trade or profession is carried out for profit. Additionally, it includes journalistic or printing establishments and premises in which the businesses of banking, insurance, stocks and shares, brokerage; or produce exchange are carried on; or which is used as a restaurant, boarding or eating house, theatre, cinema or another place of public entertainment or any other place which the government may declare, by notification in the Official Gazette, to be a commercial establishment as per this Act.

Applicability of Registration

Registration under this act is mandatory for all the businesses that operate from any commercial establishment or shop. Additionally, each and every employer must submit an application for their shop or for any commercial establishment within 30 days of starting his/her new business.

All shops, hotels, food houses, local restaurants, city theatres, places for public entertainment, and any other commercial establishment is regulated by this Act, and thus require a Shop and Establishment License registration as per the law.

Benefits & Procedure of Shops and Establishment Registration

Benefits of Getting a Shops and Establishments License:

The license obtained under the Shop and Establishment Act helps employers in: 

  • Opening a current account with ease;
  • Registering for GST conveniently; 
  • Availing tenders from the state department; 
  • Further, obtaining the prestige of having legal status and backing;
  • Inspiring trust in the creditors/suppliers and other stakeholders; 
  • Getting loans sanctioned from banks and other financial institutions.

Procedure for Registering Under the Shop and Establishment Act

Businessmen may apply for the Shops and Establishments license through the online portal on the government’s official website. However, the rules regarding the process of registration and the eligibility criteria can be considerably complicated for common citizens to understand. 

Further, the application forms must be filed with various tedious and complicated details. It is regarding the establishment’s name, owner’s address and employees specifications. Furthermore, these details must be recorded in the prescribed format to receive approval.

Entrepreneurs are advised to seek legal help from experts at Domiyance to ensure hassle-free and quick processing of their application. Determining which documents are required for registration and which jurisdictional area your establishment falls under is a complicated and time-consuming task that is best outsourced to professionals in the field. Hence, our team will not only gather the necessary information from you and file the application in the format specified choosing the right jurisdiction, but they will also email the registration certificate to you as soon as possible.

documents required for Shops and Establishment Registration

Please keep the following documents scanned and ready with you for online registration

  • Address proof of shop/commercial establishment;
  • Photo of the shop/commercial establishment’s front entrance; 
  • Photo of the shop/commercial establishment’s interiors;
  • Identity proof of owner/directors;
  • Scanned copy of the signature of the applicant;
  • Further, a copy of the rent deed or lease deed;
  • A copy of the resolution, duly stamped on the company letterhead, permitting the partner/director to apply for shop and establishment act registration;
  • Power of Attorney;
  • Memorandum of company;
  • List of directors of the company;
  • PAN Card of company and directors.