Shops & Establishment Act Registration
Simple Shop Act Registration Process
The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganised sector and provides a list of obligations for every employer.
What is Shops & Establishment Act Registration?
The Shop and Establishment Act Registration regulates the organized and unorganized sector in India and keeps a check on the working conditions at the place of work. It applies nationwide to Shop, commercial establishments, hotels, and eateries, restaurants, eating houses, theatres and other places of public amusement or entertainments houses. It governs and lists the rights of employees at the workplace and imposes certain obligations on every employer to comply towards its employees. The shop and establishment registration is a state act and the procedure may vary from state to state. The shop and establishment registration is to be obtained by making an application online on respective state official sites.
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Documents & Information Required for Shops & Establishment Act Registration
- Name of the establishment(In case of Individual)
- Individual’s or Firm’s or Company’s copy of PAN Card
- Individual’s voter id or Aadhar card or passport copy
- Individual’s or company’s or firm’s cancel cheque copy of current bank account
- Copy of Rent Agreement or Electricity Bill Copy of the premise
- Number of employee
- Details of employee
- Authorization letter (In case of Company/ Partnership)
- Passport size photograph of applicant
- Photo of the shop along with the owner
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Advantages of Shops & Establishment Act Registration
It establishes a current account
It can help an individual to open the current account with the bank by getting this certificate from Chartered Accountant.
Smooth inspector visits
Any inspector from the state government or local municipality visits the premises of your office, then you can easily flow from his trap as you are already registered.
No Compliance
It does not require any compliance after registration. Hence, there will be only a one-time cost.
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Key Points on Shops and Establishment
Applicability
Applies to all commercial establishment which includes shops, offices, schools, hospitals, societies, charitable trusts, educational institutions which operate for the motive to earn profits. However, factories are not covered by the shops & establishments Act and are regulated by the Factories Act, 1948.
Meaning of Shop
A premises where any trade or business is carried on or where services are rendered to customers. It includes offices or warehouses, whether in the same premises or not, used in connection with such trade or business, but does not include a shop or office attached to a factory within the scope of the Factories.
Commercial Establishment
A Commercial Establishment shall mean a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house etc a cafe or any other refreshment house, etc.
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