In this article, we are going to learn more about ‘shop Act’. Shop enrollment license Is required if you have a physical store or office where your business is conducted. It proves that a specific business is being conducted at that location.
Shop Enrollment License
A Shop enrollment license is a legal document allowing us to trade within that place legally. This license’ Shop Act’ is mandatory in India.
The registration for shop and establishment, which varies slightly from the state – to – state in India, is enacted by the state. However, all stores and commercial establishments operating inside each state are protected by the appropriate Shop Act, according to the Act.
For example, the Shop Act in Maharashtra is also called Gumasta as a local language. This Act requires that all shops be registered.
The Shop Act’s Goals Are To:
- The unorganised sector of employment, such as shops and establishments, provide employees and proprietors with statutory duties and rights;
- Regulation of working conditions and employment conditions in shops, commercial establishments, hotels, restaurants, eating houses, theatres and other public entertainment venues.
What Is the Purpose of this License?
A company that employs casual workers, full-time employees, contract-based employees, and so on needs to register under the Shops and Establishments Act, also known as the Shop License, to ensure workers’ rights are protected, and work conditions are managed.
For License, the Following Documents Are Required:
- The employer’s Aadhar card (in case of a legal statute such as enterprise, etc. copy of the Aadhar card of the responsible individual under the respective Act)
- Actual photograph of the establishment, showing the inside and the name board (Marathi) at the appropriate location.
- LLP/partnership deed In the case of a partnership or limited liability company, a registration certificate is required
- The pvt company registration certificate, as well as director lists on letterhead with the directors’ contact details, addresses, and nomination of directors (resolution) (in the case of a private ltd or limited company)
- A photograph of the applicant
- The signature of the applicant
- Address verification
- Your current electric bill
- PAN card (company PAN in the case of private ltd, partnership, limited firm or Proprietor PAN in the event of a sole proprietorship)
- Self-declaration.
- Building UID number (if sites are to be found in Mumbai).
The Shop Act Licensing Process
Vakilsearch takes a results-oriented strategy to ensure that the company’s statutory license criteria are met. A straightforward and guided process aids organisations in obtaining licenses in a timely and cost-effective manner. Vakilsearch is completely committed to advising, guiding, and ensuring compliance with license requirements in order to receive approval.
The Following Is the Method for Obtaining a License:
- The paper requires an advisory
- The document’s recommendation
- Preparation of documents in accordance with the application and a document list
- Filling out the application
- If necessary, the department will conduct an inspection
- Department of liaison
- A license has been issued
- If applicable, yearly compliance
- When it’s time to renew.
Who Is Authorised to Grant the License?
Corporation of the municipality
What Is the Shop Act Purpose?
Workers in the unorganised sector lack a governing process to ensure their privileges and employment conditions are up to par. This is why the Shop Act license was put in place. The Shop or Trade License maintains a certain level of consistency within a certain area in terms of vacations granted, working time, and remuneration, among other things, despite the fact that the rules vary from state to state.
The Shop and Establishment Act governs the operation of firms that engage in any type of trade. This applies not only to commercial businesses but also to charitable trusts, for-profit educational organisations, and other locations where a brokerage, stock, or insurance transactions are conducted.
The Shop Act regulates worker rest periods, open and close hours, sick, maternity leave, and informal leave, as well as limits on overtime labour, national and religious holidays, and so on.
Who Is the Shop and Establishment Act Intended to Protect?
A store is defined as any location where individuals can buy or sell retail or wholesale goods or receive services. As per the Shop Act, the subsequent establishments are covered:
- Storerooms
- Restaurants or eating establishments
- Godowns
- Workhouses
- Warehouses
- Theatres and other public entertainment venues
- Hotels for residents.
What Is the Procedure for Obtaining a Shop enrollment License?
Please fill out the application form and send it in with the relevant documentation. After paying the required costs, you will receive a stamped challan. Send the application form and challan to the chief inspector of the relevant area.
The chief inspector will next review the form, after which the business or establishment will be certified and obtain a registration certificate. This normally takes a week to complete. The Indian government requires that the registration certificate be displayed in a prominent location in the establishment or store at all times and that it be renewed when it expires.
Of course, the license will be issued only if all of the Act’s mandatory provisions are met. The inspector may come to the institution at any moment to ensure that all rules have been followed. If this is not the case, the establishment is typically fined.
Suppose a person wishes to close a business owing to a lack of business. In that case, the owner must send a letter to the chief inspector within 15 days of the closure, detailing the problems encountered and the resultant decision to close the business. After reviewing the owner’s letter, the chief inspector will reject the registration certificate, eliminating the shop or organisation from the official registry.
What Is the Cost of Registering for a Shop License?
The fees you’ll have to pay to depend on how many employees you have, according to the Shop Act website, whether you’re trying to register your shop/business or renew its license.
Companies with more than 100 employees must pay a registration and renewal charge of around ₹6000 and a late fee of approximately ₹3000. However, in many circumstances, the cost structure is determined by the sort of business you operate rather than the number of employees you employ. For example – According to the Madhya Pradesh government website, the cost of applying for and renewing a shop license may have different price ranges.
Conclusion
So, suppose you’re planning to open a shop or an establishment that falls under the Shop Act. In that case, you should contact our Vakilsearch team right away to examine the prerequisites for obtaining a shop and establishments license.
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