Shop and Establishment registration is state based registration and governed by law of respective state. It is mandatory license for doing any commercial activity in respective state. If any person is engaged in any commercial activity and/or running commercial establishment then such person is required to obtain shop and establishment registration.
What is the need of Shop and Establishment license
Every State has their own law which binds every shop and establishment to obtain license from labour ministry for their business. Since the state government frames rules, obviously, rules will differ from state to state. Generally it is one of most important registration which any business has to be obtain before starting business or within prescribed time of beginning. Broadly, shops, hotels, restaurants, cafes, theatres, places of public amusement or establishment and other commercial establishments, etc. are under the Shop and Establishment Act
What is the procedure to obtain Shop and Establishment license
As we elaborated above, Shop and Establishment license is state based license and different state have different process for registration. In General, every state has their own online system for processing of Shop and Establishment license. In many state, you can get approval on real time basis however post approval of license inspection can be carried out by field officer.
What all documents are required for Shop and Establishment License
In general following documents/information is required
- PAN Card
- Aadhaar Card of authorised signatory
- Address Proof of business (Rent Agreement, Ownership Proof etc)
- Registration Certificate if any (Certificate of incorporation/Partnership deed)
- Mobile no and Email ID
- Nature of Business
- Number of employee involved in business
- Number of shift and working hours
What is Validity of Shop and Establishment License
In general, Shop and Establishment license remains valid for one year however applicant opt for extended period on additional payment of fee. In Some state it may be valid for lifetime hence renewal may not be required.
What are consequences for non-obtaining of Shop and Establishment license
Every state have their own penalty provisions for non-obtaining of Shop and Establishment license. It is highly advisable that every business man have to comply with provisions of Shop and Establishment act otherwise his business can be seized by appropriate officer