If you want to launch a business in Telangana you need a shops & establishments licence, especially if you have already hired employees. In this article, we will tell you how to register for a shops & establishments licence in Telangana!
What Does the Shops and Establishments Act Entail?
The Telangana Shops And Establishments Act of 1988 prescribes the applicable labour laws for those who wish to run a business in the state. The act has regulated working hours, wages and working conditions in all charitable trusts, educational institutions, printing establishments, as well as commercial establishments. Know more about Shops and Establishments License in Telangana.
Before we move further, let’s understand the scope of the terms ‘Shop’ and ‘Commercial Establishments’.
The term ‘Shop’ means any premise where any business or operation is carried on or where facilities are offered to customers. Including offices, stores, godowns, or warehouses, whether at the same location or elsewhere, utilised in connection with such company or trade.
On the other hand the term Commercial establishment means any premises wherein any business, trade, or profession is carried out for profit. It also includes journalistic or printing establishments and premises in which the businesses of banking, insurance, stocks and shares, brokerage, or produce exchange are carried on; or which is used as a restaurant, boarding, or eating house, theatre, cinema, or another place of public entertainment or any other place which the government may declare, by notification in the official gazette, to be a commercial establishment as per this Act.
Benefits of Obtaining a Shops and Establishments License
A Shops and Establishments Act license is useful for –
- Opening a current account with ease
- Registering for GST conveniently
- Availing tenders from the state department
- Inspiring trust in creditors/suppliers and other stakeholders
- Getting loans sanctioned from banks and other financial institutions.
Who Needs to Register Under the Shops and Establishments Act?
Registration under this act is mandatory for all businesses that operate from any establishment or shop in Telangana. In essence, any shop or establishment that carries on business in notified areas of trade, industry, or services within the state of Telangana needs to register under the act.
Moreover, all business organizations such as malls, supermarkets, shops, hotels, food houses, local restaurants, city theatres, and other commercial establishments are also regulated by this Act, and hence require a Shops and Establishments registration as per the law.
Additionally, every employer in Telangana must renew their license within 30 days of its expiry, failure to do so will result in the levying of a hefty penalty. Partner with Vakilsearch today and never miss a renewal deadline ever again!
Documents Required for Shops and Establishments Registration
It is very important to keep the following documents handy before you start the registration process.
- Form No-I (application form for registration)
- Photograph of the shop or establishment’s name board in Telugu
- List of employees
- A copy of the rental or Sale deed of the shop or establishment
- Owner’s ID proof and a passport-size photo
- Certificate of Company Incorporation
- MoA and AoA, in the case of companies.
Shops and Establishments Licence: Registration Fees
The registration fee applicable will vary depending on the number of employees engaged in your organisation as follows:
| Number of Employees | Fee Applicable |
| 0 Employees | ₹100/- |
| 1-5 Employees | ₹500/- |
| 6-10 Employees | ₹1000/- |
| 11-20 Employees | ₹2000/- |
| 21-50 Employees | ₹5000/- |
| 51-100 Employees | ₹10,000/- |
| > 101 Employees | ₹10,000 + 5000 for every additional 50 Persons. |
Shops and Establishments License: Annual Fees Payment Timeline
Every shop and establishment registered under the Shops and Establishments Act must pay an annual fee to keep the certification valid. The most preferred time to pay the fee is between 1 November to 1 December every year.
The annual fee payment timeline for shops and establishments in Telangana is as follows-
| Date of Payment | Penalty Levied |
| 1st November to 1st December | No Penalty |
| 2nd December to 31st December | 25% penalty on the fees Prescribed. |
| 31st December onwards | 50% penalty on the fees Prescribed. |
If you need help staying up to date on your annual fee payments, get help from the experts at Vakilsearch.
Rules of Shops and Establishments Act in Telangana
The Shops and Establishments Act in Telangana lays down crucial provisions governing the functioning of businesses. Understanding these rules is essential for both employers and employees to ensure compliance and a harmonious work environment. Here’s an overview of key provisions:
Employment of Women and Children:
- No child under 14 can work.
- Maternity leave for women: six weeks before and six weeks after delivery.
Working Hours:
- Shops must close at government-specified hours.
- Employees entitled to a 1-hour interval after 5 hours of work.
- Interval can be reduced by half an hour for those working less than 8 hours.
- Service allowed within a quarter of the closing hour if customers are waiting.
Exemption of Work:
- Women were exempted from work before 6 am and after 8:30 pm.
- Young individuals are exempted from work before 6 am and after 7 pm.
Regulations and Employment:
- Maximum load capacities defined.
- Pregnant women exempted from carrying loads.
- Annual medical check-ups are mandated.
- No penalty without a cause.
- Weekly working hours capped at 48.
Weekly Holidays:
- Shops closed on Sundays or a designated weekday.
- Employees are entitled to nine holidays with wages annually.
- Wages for work on holidays at reasonable rates.
Annual Leave With Wages:
- Employees with 240 days of service are eligible for 15 days of leave.
- Those with less than 240 days are entitled to 8 days of leave.
Right of Employees:
- Complaints must be addressed before termination.
- No termination without valid reason or 1-month notice after 6 months of continuous work.
- Employees with over 1 year of service are entitled to 15 days’ average wages per year for various situations.
Compliance with these regulations fosters a fair and secure work environment, protecting the interests of both employers and employees. Employers should familiarise themselves with these rules to create a conducive workplace, while employees can be assured of their rights and entitlements under the Shops and Establishments Act in Telangana
Procedure for Registering Under the Shops and Establishments Act
Businesspeople from Telangana may apply for the shop and establishment license through the Department of Labour’s online portal.
However, the procedure of registration and calculation of the registration fee can be a tedious and complicated process, one best entrusted with professional’s like Vakilsearch.
Additionally, determining which documents are required for registration and which jurisdictional area your establishment falls under is a complicated and time-consuming task. Moreover, the details in the application forms must be recorded in the prescribed format to receive approval.
Hence, entrepreneurs are advised to seek legal help from the experts at Vakilsearch to ensure hassle-free and quick processing of their applications.
Our expert professionals will gather all the necessary documents from you, calculate the fee applicable, verify all the information provided and file the application on your behalf in the prescribed format.
What’s more, we will also follow up with the officials to ensure quick approval.
To check the status of the application Vakilsearch has filed on your behalf, visit this official portal. Enter the application reference number emailed to you and fill in the captcha. Once you click on Show you will be briefed on the status. Once your license is granted, you will receive an email with the registration certificate as soon as possible.
If you already have a shops and establishments license and wish to verify its ingenuity, visit the official website.
Enter your license number and captcha and click on verify. The validity of the certificate will be authenticated for your benefit. If the certificate number is not recognized, it means that somebody has defrauded you. If you find yourself in this situation, get in touch with Vakilsearch to remedy this situation immediately.
FAQs
What types of businesses and establishments are covered under the Shops and Establishments Act in Telangana?
The Shops and Establishments Act in Telangana covers a broad spectrum of businesses, including shops, commercial establishments, hotels, eateries, and service providers. Essentially, any entity involved in trading, selling, or providing services falls under its purview.
What are the key provisions regarding working hours and holidays for employees under this Act?
The Act stipulates fixed working hours for businesses, and employees are entitled to weekly holidays. Working hours and holiday provisions are critical aspects, ensuring a balanced work-life for employees and preventing exploitation by employers.
How does the Shops and Establishments Act address issues related to employee welfare, such as leave entitlements and working conditions?
The Act addresses employee welfare comprehensively. It outlines leave entitlements, working conditions, and regulates issues like maternity leave, intervals, and permissible working hours. These provisions are in place to safeguard the well-being and rights of employees.
Are there specific rules for record-keeping and documentation that businesses must adhere to under this Act?
Yes, businesses must adhere to specific record-keeping rules. They are required to maintain records related to employee attendance, leave, wages, and other relevant details. Proper documentation ensures transparency and aids in the event of audits or disputes.
What are the penalties for non-compliance with the Rules of Shops and Establishments Act in Telangana?
Non-compliance can result in penalties, fines, or legal action. Penalties may vary based on the nature and severity of the violation. Ensuring adherence to the Act is crucial to avoid legal repercussions and maintain a lawful business operation.
Can businesses seek exemptions or modifications to certain provisions of the Act based on their unique circumstances?
The Act usually doesn't allow broad exemptions, but certain modifications may be considered in specific cases. Requests for modifications are typically reviewed on a case-by-case basis, emphasising the need for businesses to align with standard regulations.
How often should businesses update their records and registrations under the Shops and Establishments Act?
Businesses should regularly update their records and registrations. Any changes in employee details, working hours, or other relevant information should be promptly reflected. Regular updates ensure accurate documentation and compliance with the Act.
Are there special considerations or rules for different types of businesses, such as shops, restaurants, or service establishments?
Yes, the Act considers the diverse nature of businesses. Specific rules cater to shops, restaurants, and service establishments, addressing nuances unique to each sector. This tailored approach ensures that regulations are relevant and practical for various types of businesses.
How does the Act address issues related to the employment of minors or young workers?
The Act places restrictions on the employment of minors or young workers. It defines permissible working hours, conditions, and exemptions for young individuals. These provisions are in place to protect the rights and well-being of younger employees.
Can businesses operate 24/7 under the Shops and Establishments Act, or are there restrictions on working hours?
While certain exemptions may exist, the Act generally imposes restrictions on continuous 24/7 operations. It aims to prevent employee exploitation and ensures that businesses adhere to reasonable working hour limits, promoting a healthy work-life balance.
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