Once you start a business in India, you must register it under the Shops and Establishments Act through your respective state government’s labour department. To make the registration process smooth and efficient, the governments have allowed for online enrolment. Know about Shops and Establishment License in Uttar Pradesh Process and Other Necessary Information!
All business owners need to ensure they complete the registration process to stay on the right side of the law. To do so, entrepreneurs must use the state government’s website to file a general application form and attach the relevant information and documents. Given below is a guide to help you complete a shops and establishment license registration in UP.
Shops and Establishments Act
Using this Act, the government can create specific regulations and rules regarding the operations of shops and business establishments situated within Uttar Pradesh.
Additionally, they work in tandem with the labour department to set guidelines for employment practises within the state. Local district labour offices handle such Shops and Establishment License registrations to ensure that such businesses ensure safe working conditions for employees.
Understanding the Importance of Shops and Establishment License
Firstly, let’s grasp the essence of the Shop and Establishment License and its significance for your business. This license, granted by the state government labour departments, regulates and supervises the operations of commercial establishments in a locality. All businesses in Uttar Pradesh must obtain this license before commencing their activities.
A notable aspect of the Shops and Establishment License is the straightforwardness of its acquisition process. The Uttar Pradesh government, in collaboration with the labour department, has streamlined the registration, ensuring a simple and efficient process. Business proprietors can conveniently apply for the license through the online portal uplabour.gov.in, adding significant ease to the overall procedure.
Eligibility Criteria for the Shops and Establishments License
Shop refers to any premises or facilities used by companies to carry out operations that help customers. These include office spaces, stores, godowns, warehouses, and other premises used in connection with a company or trade. A commercial establishment refers to any shop, residential hotel, restaurant, café, eating house, theatre, public leisure, or entertainment facilities used by customers.
Owners of all such establishments must submit a registration application within 30 days of the start of their new business. Since this Act is a mandatory requirement for commencing a business in India, all entrepreneurs must apply for it without fail. Failure to register under the Shops and Establishments Act can lead to hefty fines, penalties, and legal repercussions.
Online Documents Required for Shops and Establishment License in Uttar Pradesh
- Address proof and identity proof of the applicant
- Affidavit
- Certificate of Incorporation
- Memorandum and articles of association of the company
- Cancelled cheque and bank statement
- IT Returns Filings
- Legal occupancy document proof or allotment letter from a government agency
- Documentary proof of establishment of trade
- Lease Deed Agreement, property ownership documents or property tax payment receipts
- No objection certificate from the land-owning agency.
Registration Process for Shops and Establishment License in Uttar Pradesh
- To initiate the process, type in the address bar and access the Uttar Pradesh Labor Department’s website. Click on the License Online Registration and Renewal License link, leading you to the License Labor Act Management System License website. Read the provided instructions and subscribe to the portal for access.
- If you are a new user, click on License Register Now License and choose License New Registration. License Complete the form, creating a User-Id and Password. Sign up and, under portal regulations, proceed with tasks like registration, renewal, annual returns, and inspection reports.
- Select the Uttar Pradesh Shops and Commercial Establishment Act, 1962, and click on Registration. Confirm reading instructions, tick License I AGREE, License and fill out the form. Calculate the fee and save the form. Access your saved form in the View application section, where you can edit, attach documents, and make payments.
- Upload required attachments (e.g., entity photo, identity certificate) in GIF, PNG, or JPEG format. Proceed to payment, choosing between Invoices or Online modes. If online, navigate to the Treasury’s website, select Pay without Registration, choose SRV-Labor and Employment Department, UP, and enter details.
- After payment, submit the challan information in the application form. Your application is sent to the labour enforcement officer, who may inspect or reject it. If rejected, resubmit after addressing deficiencies. Upon approval, download the certificate from the options in the View application section. Explore inspection and reaction reports in the saved application.
Registration Fees for Shops and Establishments
Business owners need to pay a registration fee for the enrolment process, depending on the number of employees they engage within their organisation.
| Shop Category | Registration Fee (₹) | Establishment Category | Registration Fee (₹) |
| No employees | 40 | No employees | 80 |
| Between 1 and 5 employees | 200 | Between 1 and 5 employees | 300 |
| Between 5 and 10 employees | 300 | Between 5 and 10 employees | 400 |
| Between 11 and 25 employees | 500 | Between 11 and 25 employees | 1000 |
| Between more than 25 employees | 1000 | Between more than 25 employees | 2000 |
Renewal of Registration Certificate
All shops & establishments licenses are valid for five years, after which they require renewal. Hence, entrepreneurs must ensure they renew their license on time to prevent legal issues and fines.
Also, commercial establishments operating on an annual contract basis pay the agreed fee for only the year the contract was awarded. When entrepreneurs fail to file renewal applications on time, they have to pay a late fee at the rate of 12.5% of the traditional renewal charge.
How Vakilsearch Can Help?
Applying for a shop and establishment license in Uttar Pradesh requires entrepreneurs to draft an application and submit it to the concerned authorities. However, this process requires careful documentation and legal expertise.
Vakilsearch offers comprehensive legal services that enable business owners to obtain a shop and establishment licence with ease. Our legal experts will collect the required details from you, file the application in the prescribed format, and send you the registration certificate at the earliest.