The Act is a labour law catering to the needs of the massive unorganized work sector in India which often suffers from unemployment , corruption and exploitation and has no legal oversight. Every state in India has enacted the Shops and Establishments Act. This Act is executed in order to regulate the conditions of work, provide for statutory obligations of the employers and, administer the rights of employees in the unorganized sector and other establishments in their jurisdiction.
The Shops and Establishments Act is a piece of state legislation, and each state in India has its own set of rules and restrictions. What the legislation has in common is that it applies to everyone who works in a business, whether they are paid or not, and it does not apply to the employer’s family members.
Consequently, the state government has the authority to exclude any establishment from any section or whole legislation, either permanently or temporarily. The same right has been effectuated by Section 5 of the Bombay Shop and Establishment License Act, which empowers the state government of Maharashtra to include/add new establishments under the Act by widening its ambit and thereafter entrusts such establishments to follow all the provisions and compliances applicable on them by virtue of the Act.
Section 5 of the Bombay Shop Act
Section 5 of the Act provides that the state government may include any establishment or class of establishment that previously did not fall within the scope of the Act, as it may deem necessary. In the words of the first subsection of Section 5 of the act:
Notwithstanding anything contained in this Act, the State Government may pass a notification in the Official Gazette declaring any establishment or class of establishments to which, or any person or class of persons to whom the provisions of this Act did not previously apply, to be an establishment or class of establishments or a person or class of persons to which or whom this Act or any provisions thereof shall apply with such modifications or adaptation as may in the opinion of the State Government be necessary from such date as may be specified in the notification.
The second subsection states that when the government passes such an official declaration under sub-section (1), any such establishment or class of establishments or such person or class of persons or employees shall be deemed to be subjected to this Act, and all or any of the provisions of this Act along with its adaptations or modification as specified in such declaration, shall apply to such establishment or class of establishments or to such employee or class of employees.
The General Objective of the Shops and Establishments Act
- To convert the unorganized sector into an organized one.
- To increase mandatory registration of small businesses.
- To regulate wages, work hours, and labour rights of unorganized sector employees.
- Stop child labour.
- Grant special benefits to women employees.
Benefits of the Shops and Establishments License
- Business entities can easily open the current account in the bank so you can avoid the messing up of the business transaction with a personal account.
- Hassle-free inspections by State government and local municipalities. The Shops Act license ensures fewer due diligence and auditing requirements.
- The Act preserves the rights of employees and ensures their safety in terms of health and financial status, discouraging any unethical practice to create a positive working environment.
- Strengthens the entity’s roots by imparting it a legal status and provides better exposure to an uncatered segment of consumers.
Shops Act License in Bombay
A shop Act license in Maharashtra is locally known as Gumatsa. A Gumatsa is required for every sole proprietorship, partnership, limited liability partnership, or private limited company. At Vakilsearch, we can help you obtain a Shops Act license all across Maharashtra, including Pune, PCMC, and Mumbai.
The Validity of a Gumasta license for an establishment with 0-9 employees is a lifetime. The Shops Act for higher than 9 employees is valid for 1 to3 year and needs to be renewed every time.
How to Apply for Shop Act License in Maharashtra Online?
- First, you must Log on to the online portal
- Then you select the registering procedure as an individual or organization, based on the kind of establishment/business initiative getting registered
- Fill in the details of the organization and proprietor
- Upload the requisite documents
- Upload the signature
- Pay the required fees.
Fees:
The charges for obtaining a Shops Act license in Maharashtra start from ₹1500/- for an establishment with 0-9 employees. The charges are different for those operating with more than 10 employees.
Documents Required: Shop and Establishment Act 1948
- The proprietor’s, director’s, or partner’s Aadhar card
- Email ID and mobile number of the person who is applying
- Personal information
- The electricity bill for the premises, rent agreement, MOA, AOA, and CIN if it is a private limited company. You will also require the partnership registration in the case of a partnership firm
- A picture of the shop with the name on it.
At Vakilsearch:
- We have an experienced team that has applied for thousands of registrations at an affordable cost
- We can also help you make modifications to your licenses, such as the number of employees, name changes, and address changes
- If you’ve received a notification from the department, we can assist you with responding at a low cost.
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