Legal AdviceShops and Establishment

Shop and Establishment Labour License Registration for Bakery Shop

Every bakery business operator must have a shop and establishment license, and all operators who have an outlet must have a shop and establishment certificate in order for the shop to operate as a legal business.

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What Is a Shop and Establishment Act License?

The Shop and Establishment Act license ensures that every working employee receives the benefits that they are entitled to from the business where they are employed. This Act safeguards the rights and benefits of all types of employees, including full-time and part-time employees, contractual employees, ad-hoc members, temporary employees, and so on.

Every organization, firm, or enterprise must register under the Shop and Establishment Act to ensure that workers’ rights are protected and working conditions are regulated. In different states, the Shop and Establishment Act license is referred to with different names.

Shop & Establishment License for Bakery Shop

All bakery shops require a shop & establishment license and an FSSAI license as they deal with food products. Shop and establishment licenses are required because they operate in a commercial area. Every food business operator must register with FSSAI based on their annual revenue and the number of employees in their shops and establishments. Our experts can help you in obtaining a shop and establishment/FSSAI license online.


The establishment of a shop is the first step in starting a business, and in India, every commercial establishment is required to get an establishment certificate. A certificate may take up to 7-10 days to be issued after the application is submitted. This certification should be completed within a month of the business commencement. All commercial food establishments are required to have FSSAI and labour licenses. It also helps in the opening of current accounts for business as well as licenses for conducting business in the appropriate location.

Features of Shop and Establishment Act

  • This Act in India may vary from state to state regarding its structure, features, eligibility, fees, terms and conditions, etc
  • This license must be obtained within 30 days of the start of commercial operations
  • Before creating a business current account, banks require this license as a legal document
  • Apart from processing facilities, which are governed by the Factory Act 1948, every other business entity, such as a shop, godown, office, warehouse, workhouse, customer service centre, and so on, is governed by the Shop and Establishment Act
  • According to state regulations, this license must be renewed on a regular basis
  • The license serves as proof of legal entity and grants the right to conduct business
  • Business entities run by the Government of India and State Governments are exempted to obtain the license.

Commercial Establishments Under Shop Act

  • Banking and financial businesses, such as insurance, stocks exchange, loans, trading, etc
  • Cinema halls, theaters and entertainment places
  • Contractors & auditors
  • Hotels, restaurants, gyms, cafes and clubs
  • Media and broadcasting houses
  • Private educational institutions
  • Quarries and mines, not included in the Mines Act 1952
  • Registered or unregistered trusts (charity/non-charity)
  • Society registered under SRA 1860
  • Any other business-related to entertainment.

Key Business Activities Controlled and Regulated Under This Act

  • Basic hygiene
  • Bonuses & festival gifts
  • Eviction or sacking
  • Holidays
  • Incentives and perks
  • Lighting and ventilation
  • Long hours of work
  • Opening and closing hours and timings
  • Pay structure for women workers
  • Precautionary measures against fire
  • Provisions for rest and breaks
  • Restriction of child labour
  • Results from wages
  • Vacation strategy
  • Weekly holidays.

The Experts at Vakilsearch are constantly ready to provide industry-leading and incomparable services to its customers. So, if you’re wanting to register your shop or business, kindly reach out to us; we’ll be pleased to help you.

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