All commercial establishments functioning in India must obtain a shops & establishments licence to commence operations. These serve as permits issued by state government labour departments to help regulate the working of commercial establishments in a locality.
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. 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 shop and establishment licence 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 shop and establishment licence registrations to ensure that such businesses ensure safe working conditions for employees.
Eligibility Criteria for the Shops and Establishments Licence
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.
- Address proof and identity proof of the applicant
- Certificate of incorporation
- Memorandum and articles of association of the company
- Cancelled cheque and bank statement
- IT returns
- Legal occupancy document proof or allotment letter from a government agency
- Documentary proof of establishment of trade
- Lease deed, property ownership documents or property tax payment receipts
- No objection certificate from the land-owning agency.
Registering Under the Shops and Establishments Act
- Individuals must visit the official website of their representative state’s labour department to apply for a shop and establishment licence
- Business owners have to create a profile in the portal and log in using their credentials to fill and file the required application form
- Entrepreneurs must make sure they have all the supporting documents mentioned above before starting the enrolment process. After filing the application form, all applicants must upload copies of these documents to complete the registration process
- Business owners have to also pay the required processing fees to complete the enrolment process. After successful payment, they must provide details of their challan number, bank name and date of payment in the application form
- All such registration forms go through a labour enforcement officer who reviews and verifies the details provided. After careful scrutiny, they will issue a shop and establishment licence.
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 licences are valid for five years, after which they require renewal. Hence, entrepreneurs must ensure they renew their licence 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 licence 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.