The Shop and Establishment Act is a kind of trade license which is granted by the State Authorities and every state has prescribed different rules and regulations to get oneself registered. If a sole proprietor has a shop as a place of business it can get itself registered under Shop and Establishment Act.
Shop and Establishment registration is state wise registration The main objective of this Act is to regulate payment of wages, terms of service, holidays, leaves, work conditions, hours of work, overtime work, rules for employment of children, description of labour, maternity leave and benefits etc. for people employed in shops and commercial establishments.
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Advantages of Shop and Establishment Registration
All the commercial establishments, such as the amusement parks, theatres, hotels, and eateries, and other entertainment houses, as well as any other such public amusement places, are liable to get registered under the act. Commercial establishment means:
Documents Required for Shop and Establishment Registration
Process of Shop and Establishment Registration
Exemption under the Act
Each State has different shops and establishments Act which regulates the process of registration and other rules and regulations. In case of Shop Act and Establishment in Rajasthan following are the exemptions provided by the law:
Shop and Establishment Act in India
The Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any business, trade or profession is carried out. 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.
FAQ's on Shop and Establishment Registration
Shop/Trade licenses are subject to State and the rules differ accordingly. This license is mandatory for all business entities, if they are not registered under any other act which gives them the power to run the business. It covers shops, commercial establishments, hotels, restaurants, public amusement, theatre , and retail trade/business.
If you are starting a commercial establishment or a shop, (as mentioned under eligibility), you need to file for registration under the Act, within 30 days of commencement of your establishment.
Shop and establishment license comes under Shops and establishment Act which makes it compulsory for all businesses and shops to possess it. Then verification of this license can be done online by entering the number there. Every state has different names and different procedures to obtain the license.
The fees parameters are different for every state. In case of Rajasthan the same is decided on the basis of the number of employees.
Trade License is a license or permission issued by municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by the improper carrying of trade.
Factories are not covered under the Shops and Establishment Act but under the Factories Act, 1948.
The validity of licence depends on the law framed by different state acts. In case of Rajasthan, the validity of licence is for lifetime.