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Komal Singh
| Updated: 26 Jan, 2021 | Category: Shop and Establishment

Procedure to Cancel Shop and Establishment Registration in India

Cancellation of Shop and Establishment Registration

Decided to close a shop or an establishment? We all know about the fact that there have been different regulated procedures to open any shop business in India. In the same way, if you want to get close to your shop or establishment, you have to go through a procedure established by the concerned authority to shut down your shop business.

We can say there are few protocols that the interested owners of shop or establishment business must have to follow. In this article we have discussed everything related to the shop or establishment business.

What is Shop and Establishment Act in India?

The shop and Establishment Act 1953 is regulated and governed by the Labour Department as it guides and handles everything related to the management of trade and running of shops or establishments business in India.

It governs and regulates all the existing laws and related to the working of commercial establishments, societies, charitable trusts, printing presses, and hotels. It also lay down laws on working hours, employee benefits, holiday rules, and granted leaves to the engaged employee. Although, you need a shop and establishment license so as to run and maintain any shop or establishment business within the India.

You must have to follow the descriptive rules and regulations with certain essentials procedures as well to get your shop license or to cancel such a license to discontinue the shop business in the country.  

Who is Eligible for Shop and Establishment Act?

Who is Eligible for Shop and Establishment Act

What is the Procedure for Cancellation of Shop and Establishment License?

Application for cancellation of shop and installation license should be done online. You may proceed with the following given steps mentioned below:-

  • First Step- The applicant needs to login the Website of Municipal Corporation[1].
  • Second Step- The verification for cancellation of shop and establishment done by sending an OTP no. on registered email ID or mobile phone number of the applicant.
  • Third Step- The Applicant should open the state wise prescribed form of cancellation of their license.
  • Fourth Step- After filling all  the mandatory fields in prescribed form, the applicant need to submit the form along with the  supporting evidence (copy of paid dues of employees)
  • Fifth Step- Once all the aforementioned steps has been done by the applicant then he need to  take a copy of the form through the print option
  • Sixth Step- Applicant should also inform his area inspector within ten days of closing his shop in writing.
  • Seventh Step- The inspector will then verify application, and if it is found to be true, they will cancel the registration certificate.

Points to Remember

  • The application form for cancellation of establishment varies from state to state.
  • The reason mentioned on form for cancellation of shop and establishment should be valid.
  • While applying for cancellation of establishment license, applicant should use the prescribed form of application available on the website.
  • Applicant should ensure that they fill the application carefully and completely.
  • Application for cancellation of license must be made within ten days of closing the establishment.
  • When applying for cancellation, Applicant should ensure that they mention the correct shop and installation license registration number.
  • Applicant should carefully include details, name, and address and payment details of the establishment.

Concluding Remarks

To start or close a new business under India’s shop and establishment Act, we must keep the correct and sound knowledge that a concerned authority works and regulates or manages such companies in India. There have been prescribed rules and guidelines by the said authority to grant or cancel the license of the owners of shop business across the country. We must have to follow the rules and apply for the license as per the protocol established by the appropriate authority and for the discontinuing business of shop or establishment; we have to go through the procedure to cancel the registration of such shops or establishments.

Read our article:Shop and Commercial Establishment Registration: Everything You Need to Know

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Komal Singh

Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles & dissertations, which serves her main interest & competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.

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