{"id":1612,"date":"2019-12-11T00:12:26","date_gmt":"2019-12-11T00:12:26","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1612"},"modified":"2021-04-05T14:36:09","modified_gmt":"2021-04-05T09:06:09","slug":"a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/","title":{"rendered":"A Complete Overview of Shop and Establishment Act And How to Obtain its License?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">When you are thinking of starting a business, the only thing that comes to your mind is the\u00a0<a href=\"https:\/\/corpbiz.io\/business-plan\"><strong>Business Plan<\/strong><\/a>. But besides the Business Plan, there are several other things that you need to look upon. \u00a0And this includes the Shops and Establishment Act, which is an important regulation that you need to take care of. Here, we will have a detailed overview of the Shop and Establishment License Act and how can you obtain the license.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#What_is_an_Establishment\" >What is an Establishment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#Shop_and_Establishment_License_Act\" >Shop and Establishment License Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#Who_can_apply_for_the_Shop_and_Establishment_License\" >Who can apply for the Shop and Establishment License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#Why_do_the_Businesses_in_India_need_to_have_the_Shop_and_Establishment_License\" >Why do the Businesses in India need to have the Shop and Establishment License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#What_are_the_Provisions_covered_under_the_Shop_and_Establishment_Act\" >What are the Provisions covered under the Shop and Establishment Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#What_are_the_eligibility_criteria_for_obtaining_the_Shop_and_Establishment_License_in_India\" >What are the eligibility criteria for obtaining the Shop and Establishment\nLicense in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#What_are_the_benefits_you_can_enjoy_after_obtaining_the_Shop_and_Establishment_License\" >What are the benefits you can enjoy after obtaining the Shop and Establishment License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#What_are_the_Documents_required_for_obtaining_the_Shop_and_Establishment_License\" >What are the\nDocuments required for obtaining the Shop and Establishment License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#What_is_the_Procedure_for_Obtaining_the_Shop_and_Establishment_License\" >What is the Procedure for Obtaining the Shop and\nEstablishment License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#Procedure_to_cancel_Shops_and_Establishment_License\" >Procedure\nto cancel Shops and Establishment License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_an_Establishment\"><\/span>What is an Establishment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under Shops and Establishment Act, term Establishment means a shop or any other commercial Establishment. These include the businesses in India like shops, restaurants, cafes etc. for which Government has set various rules and regulations which varies state to state.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shop_and_Establishment_License_Act\"><\/span>Shop and Establishment License Act <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is an Act to consolidate and amend the law relating to the regulation of hours of work, payment of wages, leave, holidays, terms of service and other conditions of employment of persons employed in shops, commercial establishments, and establishments for public entertainment or amusement and to provide for some issues connected in addition to that.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_apply_for_the_Shop_and_Establishment_License\"><\/span>Who can apply for the Shop and Establishment License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The following establishments need to apply for the Shops and Establishment License \u2013<\/strong><\/em><\/p>\n\n\n\n<ul><li>Wholesalers or the retailer\u2019s shops and establishments;<\/li><li>Service Centers;<\/li><li>Warehouses, Store-rooms, and Godowns;<\/li><li>Hotels;<\/li><li>Eating joints and restaurants;<\/li><li>Entertainment houses, Amusement parks, Theaters;<\/li><li>Additionally, any other working places.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_do_the_Businesses_in_India_need_to_have_the_Shop_and_Establishment_License\"><\/span>Why do the Businesses in India need to have the Shop and Establishment License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\u00a0<a href=\"https:\/\/corpbiz.io\/shop-establishment-license\"><strong>Shop and Establishment License<\/strong><\/a>\u00a0safeguards the rights of the employees working in these establishments such as hotels, restaurants, theatres etc.<\/li><li>Also, this Act aims to set better working conditions for these employees by regulating their wages, holidays, incentives etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Provisions_covered_under_the_Shop_and_Establishment_Act\"><\/span>What are the Provisions covered under the Shop and Establishment Act?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Different State Government has various provisions under the shop and establishment Act which can be checked on their respective state government website.<\/p>\n\n\n\n<p><strong><em>Following are the provisions regulated under the Shop and Establishment Act<\/em><\/strong><sup><strong><em><a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"http:\/\/uplabour.gov.in\/StaticPages\/EqualRemuniration4.aspx\" target=\"_blank\">[1]<\/a><\/em><\/strong><\/sup><strong><em>:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Minimum and Maximum working hours of the employees or labours.<\/li><li>The time duration for the beak and lunch timing.<\/li><li>Issuance of laws to prohibit child labour in factories and other establishments.<\/li><li>Employment of Women.<\/li><li>Number of week holidays to be allotted<\/li><li>Office timing of the establishments\/shops.<\/li><li>Extra wages for overtime.<\/li><li>Accident Coverage employees<\/li><li>Preventive measures against fire<\/li><li>Proper ventilation and lighting for workers<\/li><li>Clean and hygienic premises for the workers<\/li><li>Conditions and timing for the payment<\/li><li>Regulation of deductions on the payments<\/li><li>Leave Policy<\/li><li>Dismissal<\/li><li>Employee\u2019s proper record keeping.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_eligibility_criteria_for_obtaining_the_Shop_and_Establishment_License_in_India\"><\/span>What are the eligibility criteria for obtaining the Shop and Establishment\nLicense in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following are the things which you should check before you apply for the Shop and Establishment License:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The first thing that you should look over is that the business or the      establishment for which you want to obtain the license is covered under the Shop and Establishment Act or not. If it is so, then read the rules and regulations carefully keeping in mind your concerned state government.<\/li><li>Additionally, you need to fill the online application for it within 30 days of establishing the business.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_you_can_enjoy_after_obtaining_the_Shop_and_Establishment_License\"><\/span>What are the benefits you can enjoy after obtaining the Shop and Establishment License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>It provides a legal identification to your establishments.<\/li><li>This license can act as Business proof when you apply for further registrations in India.<\/li><li>After obtaining this license, you can provide this license in banks by which that can open an account (Bank Account) in the name of the establishment or shop.<\/li><li>Also, this license can help you in availing loans from the banks, which can help raise investments for your proposed business establishment.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_required_for_obtaining_the_Shop_and_Establishment_License\"><\/span>What are the\nDocuments required for obtaining the Shop and Establishment License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following is the Checklist of Documents required for the Shop and Establishment License:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Identity proof such as Aadhar card or PAN card or driving license of the employer.<\/li><li>\u00a0A Passport size photograph of the employer or the owner of the      establishment.<\/li><li>A photo of the shop or establishment along with the employer.<\/li><li>A copy of the rent agreement (in case of a rented apartment).<\/li><li>Any utility bill of the working premises<\/li><li>A list of number of trustees \u2013 In case of a trust<\/li><li>ROC<\/li><li>Memorandum of Association<\/li><li>A file containing the number of members and chairman \u2013 for the co-operative societies<\/li><li>Address Proof of the Establishment.<\/li><li>Partnership deed with all the vital information such as company name, name, the signature of the respective partner and share percentage of partners<\/li><li>Copy of the RBI permission<\/li><li>Incorporation Certificate as per the Companies Act.<\/li><li>Transportation Permit from the RTO (Regional Transport Office).<\/li><li>Food or\u00a0<a href=\"https:\/\/corpbiz.io\/fssai-license\"><strong>FSSAI license<\/strong><\/a><\/li><li>Food and\u00a0<a href=\"https:\/\/corpbiz.io\/drug-license\"><strong>drug license<\/strong><\/a><\/li><li>A copy of the collector permission.<\/li><li>A NOC ( No Objection Certificate) by the respective police department for a Cybercafe<\/li><li><a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC Certificate<\/strong><\/a>\u00a0(Import Export Code) .<\/li><li>Excise license \u2013 \u00a0for a restaurant or wine shop<\/li><li>Share broker Certificate by SEBI.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Procedure_for_Obtaining_the_Shop_and_Establishment_License\"><\/span>What is the Procedure for Obtaining the Shop and\nEstablishment License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Apply with respective State Government<\/strong><\/li><\/ul>\n\n\n\n<p>At first,\ndownload the registration application form from your respective state official\nwebsite where your shop or establishment is located.<\/p>\n\n\n\n<ul><li><strong>Fill the required details<\/strong><\/li><\/ul>\n\n\n\n<p><strong><em>You need to fill in the following information in the form:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Name of your establishment\/shop<\/li><li>Personal details of the employer<\/li><li>Personal details of the employees working at that time<\/li><li>Registered establishment address along with NOC or rent agreement (only for rented premises)<\/li><li>Details of the PAN Card of the employer<\/li><li>Submit the application<\/li><\/ul>\n\n\n\n<p>Submit the\napplication form to the Chief Inspector in charge of the Shop and Establishment\nAct with the prescribed fees amount.<\/p>\n\n\n\n<ul><li><strong>Application Verification<\/strong><\/li><\/ul>\n\n\n\n<p>After you\nsubmit the application form, the concerned authorities will verify all the\ndocuments.<\/p>\n\n\n\n<ul><li><strong>Issuance of&nbsp; the License<\/strong><\/li><\/ul>\n\n\n\n<p>It usually\ntakes 15-20 days for the document verification after which the Shop and\nEstablishment license will be issued. However, time duration for grant of\nlicense vary from state to state.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_cancel_Shops_and_Establishment_License\"><\/span>Procedure\nto cancel Shops and Establishment License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The prescribed form for the cancelling the application should be filled fully and logically.<\/li><li>The application should be applied within the time period of 10 days after real closure of the establishment.<\/li><li>It is mandatory to mention the registration number of the establishment on the cancellation form and it shall mention the name, address of the business and other significant information.<\/li><li>It is very important to mention the reason for cancellation of the license in the application form. The reason must be valid and reasonable.<\/li><li>Finally, there must be an attachment of a copy of paid legal dues of employee.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The final\nword suggests that you need to obtain the Shop and Establishment license before\nsetting up any kind of your establishments. The Indian Government has launched\nthis Act, keeping in mind that no business owner can violate this law and\nharass these employees who are on the office hierarchy<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-shop-and-establishment-license-is-required-for-business\/\">Wondering why Shop and Establishment License is Required for Business?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you are thinking of starting a business, the only thing that comes to your mind is the\u00a0Business Plan. But besides the Business Plan, there are several other things that you need to look upon. \u00a0And this includes the Shops and Establishment Act, which is an important regulation that you need to take care of. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":1613,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,226],"tags":[227,228],"acf":{"service_id":"25"},"authorName":"Shalini Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/09\/MEE.jpeg","authorDescription":"Shalini is a B.tech graduate but her keen interest in writing impelled her to continue as a content writer. Further, She has a rich experience in Companies Act and Ammendment related topics.","postViews":9519,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1612"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1612"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1612\/revisions"}],"predecessor-version":[{"id":28597,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1612\/revisions\/28597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1613"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}