When you consider starting a business, the business plan is the very first thing that comes to mind. One of the most important regulations to gather and verify when building a company strategy is the Shops and Establishments Act. Let's have a look at the details of S&E Act in this blog.
What Is an Establishment?
The term ‘establishment’ under the Shops and Establishments Act refers to a shop or any other business establishment. These include Indian businesses such as shops, restaurants, and cafes, for which the government has enacted a number of rules and regulations that vary from state to state.
How to Verify a Shop and Establishment License Online in India
It is an Act to consolidate and amend the law governing the regulation of working hours, wage payment, leave, holidays, terms of service, and other employment conditions of persons employed in shops, commercial establishments, and establishments for public entertainment or amusement, as well as to address some related issues.
Who Can Apply for the Shop and Establishment License?
The following establishments need to apply for the shops and establishments license:
- Wholesalers or the retailer’s shops and establishments
- Service centres
- Warehouses, store-rooms, and godowns
- Hotels
- Eating joints and restaurants
- Entertainment houses, amusement parks, theatres
- Additionally, any other working places.
Why Is It Necessary for Businesses in India to Obtain a Shops and Establishments License?
- The Shop and Establishment License protects the rights of employees who work in places like hotels, restaurants, and theatres.
- This Act also aims to improve working conditions for these workers by regulating their salary, holidays, and incentives, among other things.
What Provisions of the Shops and Establishments Act Are Covered?
The Shops and Establishments Act includes various provisions that can be found on each state government’s website. The following are the provisions regulated under the Verify a Shop and Establishment Act:
- Minimum and maximum working hours of the employees or labours
- The time duration of the break and lunch timing
- Issuance of laws to prohibit child labour in factories and other establishments
- Employment of women
- Number of week holidays to be allotted
- Office timing of the establishments/shops.
- Extra wages for overtime
- Accident coverage employees
- Preventive measures against fire
- Proper ventilation and lighting for workers
- Clean and hygienic premises for the workers
- Conditions and timing for the payment
- Regulation of deductions on the payments
- Leave policy
- Dismissal
- Employee’s proper record keeping.
Eligibility Criteria for Obtaining the Shops and Establishments License in India
Before you apply, make sure you Verify a Shop and Establishment License for the following items:
- The first thing you should check is whether or not the business or establishment for which you desire a license is covered under the Shop and Establishment Act. If this is the case, thoroughly examine the rules and regulations while keeping your state government in mind.
- You must also submit an online application for it within 30 days of starting your firm.
Documents Required for Obtaining the Shops and Establishments License
Following are the documents required for obtaining a shop and establishments license in India:
- Identity proof such as an Aadhar card or PAN card or driving license of the employer
- A passport-size photograph of the employer or the owner of the establishment
- A photo of the shop or establishment along with the employer
- A copy of the rent agreement (in case of a rented apartment)
- Any utility bill for the working premises
- A list of the number of trustees – In case of a trust
- ROC
- Memorandum of association
- A file containing the number of members and chairman – for the cooperative societies
- Address proof of the establishment.
- Partnership deed with all the vital information such as company name, name, the signature of the respective partner and share percentage of partners
- Copy of the RBI permission
- Incorporation certificate as per the Companies Act.
- Transportation permit from the RTO
- Food or FSSAI license
- Food and drug license
- A copy of the collector’s permission
- A NOC by the respective police department for a cybercafe
- IEC certificate (import-export code)
- Excise license – for a restaurant or wine shop
- Share broker certificate by SEBI.
Conclusion
The final word is that you must first Verify a Shop and Establishment license before opening any type of business in India. This Act was introduced by the Indian government with the objective of ensuring that no business owner can violate this law and harass these employees who are on the office hierarchy.
