What are the Documents Required for Shop and Establishment License?

Last Updated at: Dec 01, 2020
What are the documents required for Shop and Establishment License
The information technology industry in India got a huge boost on November 5, 2020, when the Department of Telecommunications (“DoT”) issued New Guidelines for Other Service Providers(OSPs). This has intended to improve the terms and conditions for OSPs, including compliance requirements. From now on, OSP services can be provided by a partnership firm or an organization registered under the relevant Shops and Establishment Act. Earlier, the same was limited to a company or a limited liability partnership(LLP) only. 


Are you starting your own shop, start-up, or any business establishment?

In that case, it’s mandatory for you to register your shop/establishment and obtain a Shop and Establishment license, as per provisions mentioned in the Shop and Establishment Act of your state. You may visit the State Labour Department office in your locality or the website of the State Labour Department to formally register your business. Irrespective of any kind of business you start and whether it is fully functional or not, you need to register it within 30 days. However, this registration is not compulsory for businesses that fall under the purview of the Factories Act of 1948.

The Shop and Establishment Act looks to regulate the rights and working conditions of the employees engaged in the Indian unorganized business sector and also prescribes the obligations for the employers in this context. It regulates matters such as wages/payments, working hours, holidays, leaves, hiring and termination of work, engagement of juveniles/women, general terms of service or any such conditions related to the individuals working in commercial establishments, shops, public amusement establishments, and others.

Documents required for Shop and Establishment License:

The procedures to obtain the Shop & Establishment license may vary from state to state. However, we will discuss some common procedures followed by most of the states, so that you can have a fair idea.

In general, the documents required to apply for a shop and establishment license are as follows-

  • The front view photograph of the shop/establishment, with the board/name in local language
  • Certificate of Incorporation
  • AOA/MOA of the company/LLP agreement of the company
  • A copy of the PAN card of the business owner/business
  • Copy of the Partners’ consent or the Board resolution
  • List of partners/directors, along with their address & ID proof
  • Proof of Address of the company /proprietorship/partnership/LLP ( lease deed/utility bills etc)
  • Details of the existing employees

get shop and establishment license

A statutory fee is also required to be submitted along with these documents and the amount differs from one state to another. Some states fix the fee depending on the type of the establishment, while some others fix it on the number of individuals employed therein.

Documents Required for registering a Shop Establishment license

How to Renew the Shops & Establishment Registration?

Every Shops and Establishment need to renew the registration within 15 days of the expiry of the same. However, the period of expiry varies from state to state and is annual for most of the states.

Check out this blog: Why you should obtain a Shop and Establishment License?

Here, we will discuss the steps to be followed to renew the registration in the State of Maharashtra. Indeed it will give you a basic idea about the process of renewal followed elsewhere in India.

  • Log on the Department of Labour website- lms.mahaonline.gov.in
  • Choose to renew your license from the appropriate drop-down menu
  • By using your log-in credentials provided during the registration, fill in the details required for renewal and submit
  • Upon submission of your renewal application, you will be provided with an application ID. With this ID, you can appeal for the renewal.
  • The form will automatically ask you to upload all the documents you submitted during the registration.
  • After you upload all the documents, you need to pay the renewal fee.
  • Post successful payment of the fee, the status of the renewal application will change to “Under scrutiny”. However, the process will take about a week to complete.
  • Post completion of the process, the status will get changed to “Completed” and you will be able to download the certificate. Moreover, the ‘Download’ button will be available on the right of your screen.

How to Cancel the Shops & Establishments Registration?

In case, you decide to close your shop or establishment, you need to inform the concerned officer of the department within 10 days of the actual closure, with an application to cancel your shops & establishment license. The following procedure needs to be followed-

  • You should fill the application form properly and fully.
  • The form should mention the registration number of the shop/establishment, the name, address, and other information, as necessary.
  • You should mention the reason for closure/cancellation in the form.
  • The reasons for closure/cancellation must be valid.
  • The form should be accompanied by a copy that reflects the paid legal dues pertaining to the employees.
  • On him being reasonably satisfied with the correctness of the details mentioned in the form, the concerned officer will issue an appropriate order to cancel the existing registration.

Check out this blog: Registration process of Shops and Establishment Act.

Download the PDF format to know more about Shop & Establishment.

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