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Pankaj Tyagi
| Updated: 11 Jun, 2021 | Category: Shop and Establishment

How to get Labour and Shop & Establishment Certificate For Distributors and Marketers?

Shop & Establishment Certificate For Distributors and Marketers

Businesses dealing with food products are required to obtain several licenses to ensure seamless day-to-day operation. FSSAI registration is one the most basic licenses that every Food Business operator requires to stay operational in a legal regime. Other important license includes shop & establishment certificate and labor license.

Overview on Shop & establishment certificate and Labour license

The marketers or distributors of the commodities generally have a commercial space for storage and transportation. These premises cannot go unregistered and hence they should seek for shops & establishment certificate to stay in compliance. The CorpBiz is always ready to support such clients with class-leading and unmatched services. So, don’t hesitate to connect with us in such demanding scenarios.

Shop & establishment certificate is an absolute mandate for every commercial premise, irrespective of their area of operation. After applying, the authority usually takes 7-10 days for validating and issuing the Shop & establishment certificate. The applicant can apply for the said license within a month of the commencement of the business.

Apart from the FBOs, all other commercial establishments must have a labor license without exception. It helps businesses to open current accounts for their business and deal with other business areas. Every food business operator’s FBOs should be a Shop & establishment certificate in case of a physical outlet. The same rules apply to operators as well who possess physical outlets for their business activities.

Read our article:Procedure to Cancel Shop and Establishment Registration in India

Pros of having a Shop & establishment certificate

The criteria for obtaining Shop & establishment certificate revolves around the employee capacity within the establishment. This act came into existence to support the employees, particularly from the unorganized sector. Apart from ensuring their well-being, it also talks about their rights. This act takes the parameters like wages, working hours, work environment, hygiene protocol, etc into account for the betterment of employees. Opening of separate bank account is another important requisites that business owners need to comply with for obtaining this license.

Note: The information in this write-up is mainly for the business owners located in the state of Karnataka.

A Detailed Overview of Documentation

Shop & establishment certificate for Sole Proprietorship:

  • The firm’s name seeking said registration.
  • Proprietor’s PAN Card as ab identity proof.
  • Proprietor’s address proof.
  • Rental Agreement of the concerned premises.
  • Passport size photo
  • Nature of Business along with mail id, mobile number

Shop & establishment certificate for Sole ProprietorshipPartnership Firm:

  • Pan Card related to the Partnership Firm.
  • Id as well as the Address Proof of all partners.
  • Rental Agreement of the concerned premises seeking registration.
  • Partnership deed
  • Passport size photos of all the active partners.
  • Nature of Business & email id, mobile number of the concerned person

Shop & establishment certificate for Private Limited Company:

  • Pan Card related to the Private Limited Company.
  • Incorporation Certificate i.e. COI of the Company.
  • Id as well as Address Proof of all active Directors.
  • Rental Agreement.
  • Charter documents such as MOA & AOA
  • Passport size photos of all the active directors.
  • Nature of Business & email id, contact number of the concerned person

Labor License Registration Process (Karnataka regions)

  • Open Ekarmika online portal for labor license registration.
  • Select the New Registrations option and fill the web-based form accordingly.
  • After that, you will get the login credentials i.e. Username and Password on your registered email contact.
  • After successful login, fill the rest of the form aptly.
  • Avail Challan from any designated bank as per the number of the employees.
  • Then attach mandatory dossiers along with challan and avail the receipt number.
  • Submit the hard copy of the form in the respective regional circle for verification.
  • After verification of the said form, the Senior Labour Inspector will grant the certificate to the applicant.

Employees’ Rights under the Shop & Establishment Act

  • Every employee can take weekly off as a compulsory holiday.
  • Every employee that serves additional working hours will have access to wages twice the rate of basic wages.
  • Every employee can preserve earned leave for 40 days. 
  • Every employee can turn unavailed earned leaves into cash.
  • An employee who has confronted job loss due to the company’s action can challenge the same by pleading before the jurisdiction officer in light of reasonable grounds.
  • Compensation will be given to an employee who has confronted job loss without any reasonable cause. In such an event, the compensation’s value shall be equivalent to one month’s pay for every year of service.

Some more guidelines for Employer under Shop and Establishment Act

  • Every employer shall bestow an appointment order in form ‘P’ to the person soon after the recruitment.
  • The attendance of the active employees shall be recorded in form T.
  • The employee should confer one day holiday as a weekly off to its employees. As per the Act, after a continual service of 6 days, the employee is eligible to take off on the very next day. In other cases, the employer can bestow one-day leave on the 11th day as a mandatory holiday.
  • The salary disbursement should be done before the 7th date of next month.
  • Working hours of any worker have been capped at 49 hours & 58 hours, including extra working hours.
  • The estimation of the employee’s leave should be posted in Format ‘F’.
  • Any employee with a track record of more than 180 days of service cannot be fired without prior notice.

Conclusion

Shop & establishment certificate is compulsory for every commercial establishment that exists in the Indian territory[1]. Also, labor license come to effect when an entity recruits ample workers to carried out the business operation. Hence, it can be concluded that both these certificates are of utmost importance for distributors as well as marketers. Share your concern if you have a second thought on the same.

Read our article:An Outlook on Benefits of Shop and Establishment License

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Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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