The Tamil Nadu Shop and Establishment Act administers the functioning of companies in Tamil Nadu. The State Department of Labour grants Shop and Establishment licenses to the eligible entities. It’s worth noting that for MSMEs and small-scale industries, this license act as legit evidence of existence. Given below is a detailed guide for obtaining Shop and Establishment license in Tamil Nadu.
Key takeaway: The Tamil Nadu e-Governance Agency, viz (TNeGA) and state’s nodal agency for digital governance, has opined an array of initiatives to strengthen e-governance. It has built a project in association with IIT Madras that allows users to complete transactions electronically. These include- employer registration, job seeker registration, e-filing for Shops and Establishments registration, and so on.
An Overview on Tamil Nadu Shop & Establishment Act
The Tamil Nadu Shop & Establishment Act, 1947 administers the functioning of the establishments and retail outlets in Tamil Nadu. As per the Act, the term “establishment” refers to shop, retail outlet, commercial establishment, eating house, restaurant, amusement, and theatre includessuch establishment as the State Government might via notification declare to be an establishment for this Act.
The term “shop”, on the other hand, refers to any premises where any business or trade-related activities is carried out or where services are given to clients & includes go-downs, storerooms, offices & warehouses, whether within the same premises or otherwise, used in linkage with such business but does not encompass commercial establishments or a restaurant.
Read our article:Procedure to Cancel Shop and Establishment Registration in India
Who must seek Shop and Establishment License in Tamil Nadu?
Each shop or establishment which exists in Tamil Nadu carries trade or services must seek for Shop and Establishment license. Eligible entities for this license include eating houses, shops, theatre, amusement park, theme park, residential hotel, and other commercial establishments as required by the aforesaid Act.
Mandatory Documentation for Shop and Establishment Registration
Businesses that seek Shop and Establishment licenses should be aware of mandatory documents to be presented before the relevant authorities. Thus, to get register under Shop and Establishment act, you need to arranged the given dossiers that will go along with the application form.
- Pan Card related to the Private Limited Company.
- Incorporation Certificate related to the Company.
- Memorandum of Association (MOA) & Article of Association (AOA) for an entity working as a private limited company.
- Form 18.
- Form 32.
- Identityas well as Address Proof of all Directors.
- Commercial Address Proof
- Rental Agreement (if any).
- Challan/Payment Receipt /Transaction Receipt
Procedure to avail Shop and Establishment license in Tamil Nadu
Like we mentioned the State Department of Labour possesses the legal right to grant Shop and Establishment license in Tamil Nadu. The Shop and Establishment license Act compels this department to appoint the local district labor officers for the issuance of the registration certificate. The owner of the shops is required to furnish an application before the inspector in charge along with prescribed fees within 30 days from the date of starting the business operation.
Given are the details that need to be provided in the application.
- Name of the employer & establishment
- Establishment’s postal address.
- Several employees present in the establishment.
- The date regarding the commencement of operation.
Additionally, post submission of the application, the same will be reviewed by the in-charged inspector for authenticity. After successful verification, the said official will bestow the registration certificate to start the business. Any alteration to the detail provided at the time of registration seeks to report to the inspector within 15 days from the date such changes occur.
Additionally, the inspector shall make apt alteration post verification & will grant a new registration certificate if needed. Furthermore, if the owner wants to cease the operation or close their establishment, they will share the concern with the inspector in writing within 15 days of closure. Once the inspector seizes the registration, the name will be discarded from the register.
Registration fees regarding Shop and Establishment License in Tamil Nadu
You must pay the fee as per the no. of employees serving the establishment. The list below will render a clear understanding of the same.
- 1 to 15 employees: Rs 6500
- 6 to 11 employees: Rs 9000
- 12 to 21 employees: Rs 15,500
Once all formalities is done, the labor registration certificate will be bestowed to the applicant. The grant of certificate authority usually takes around 5 to 10 working days.
Tamil Nadu Shop and Establishment Act: Key Points
The Shops and Establishment Act specifies conditions for the following;
Guidelines regarding Child labour-prevention
The Shop and Establishment Act prohibits recruiting children for any type of establishment whatsoever. As per the Act, the term “child” denotes a person who has not completed the age of 14 years. No youngster is allowed to work before 6 A.M. and after 7 P.M. Youngsters are only permitted to work not more than 7 hours/day, or 42 hours/week. Remember, as per the Act, the term “youngster” refers to an individual whose age is less than 17 years.
Opening and Closing of Commercial Establishments& Shops
The Shop and Establishment Act has capped the working timeline for employees serving shops or commercial establishments at 8 hours/day or 48 hours/week. Anything exceeding this limit is legally prohibited. The Act also compels the employer to grant a mandatory one-day leave to all of its employees.
Health & Safety
The Shop and Establishment give special emphasis on health and safety parameter of the establishment to ensure the well-being of the employee and a good working environment. Proper ventilation, tidiness, ample lighting, and Insurances against flame are among the most important attributes as per the Act.
Settlement Of Wages
Every employee serving the establishment, after twelve months’ continuous service can have access to holidays with wages for 12 days, in the subsequent year. Provided that such holidays with wages might be gathered up to a max of 45 days.
The Tamil Nadu Shop and Establishment Act talks about the mandatory legal permission for establishing shops and the welfare of employees working in such establishments. It’s mandatory to have a Shop and Establishment license for an establishment that resides within the jurisdiction of Tamil Nadu.