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Shops and Establishment

What Is a Shop Enrollment License in India?

A shop enrollment license is essential for carrying out your business in a smooth way. But what is a Shop enrollment License? Is it mandatory? Further, the objectives of the same? We will learn about the same and more in this article.

The shop enrollment is an important governmental document that is essential to building your business. The shop license was made mandatory for protecting the welfare of both the employee and the employees. Further, the document consists of provisions like working conditions of the employees, wages, hours of work, etc that a company should provide the employees as per the rules and regulations of the government. What is a shop enrollment license? Let us see in detail.

What Is Shop Enrollment License?

A shop enrollment license is a state government-based registration that is required to begin your shop, hotel or any commercial place in the respective state. The registration is done as per the shops act to ensure that the shop/hotel/commercial place is built following government norms and conditions within 30 days of commencement of work. 

The shop license makes the employers liable to follow the regulation of the act in terms of working conditions of the workers, employees, etc in the shop/establishment. Moreover, the shop establishment document also works for the welfare of the employer. 

The Registration Process for Shop and Establishment

For acquiring any license you need to follow the registration process for the same. Similarly, for getting the shop enrollment license, you have to follow these registration processes:

  • Submit the Basic Documents Required for Obtaining the License

    As a first step submit the essential documents like proof of establishment, Pan card, ID proof of the company, employee details, and images of the exterior and interior of the shops/establishments.

  • Provide the Name of the Applicant, Name and Address of the Establishment

    Secondly, provide the name of the individual who is applying, the name of the establishment, and its address. 

  • Submit the Ownership Documents Related to the Establishment

    The most important process for the shop enrollment license is to submit the ownership documents related to the establishment. 

  • Address Proof of the Establishment Should Also Be Provided

    Finally, the address proof documents related to the business establishment should also be provided along with other documents. Thus these are the registration procedures for obtaining a shop license. 

Is Shop Registration is Mandatory

Yes, shop registration is mandatory for shop/establishment to own. Because it is a basic license for every business that serves as proof for the individual’s business. Having a shop registration helps in obtaining many other licenses. All you need to do is to provide the PAN card of the business owner, a copy of the rental agreement, etc. further, the shop establishment license is valid for around 23 years. Make sure that the shop act registration is done within 30 days. 

What Are the Objectives of Shop Registration?

There are some essential objectives of shop registration. They are:

  • To Work Under State Law

 The first objective of the shop registration is to work under state law. There are various rules and regulations created by the state government. Further, the business establishment/shop should abide by the rules and regulations. For instance, they make sure that employees’ welfare is given the top priority.

  • To Secure Equal Benefits for Working in Various Establishments

  The second and the most important objective of the shop registration is to secure equal benefits like increasing their wage, creating flexible working hours, etc.

Regulations Under Shops Enrollment License

Now that we have seen the importance of a shop license and the process of the shops enrollment license. The next thing we can focus on is the regulations under the shop establishment license. They are:

  • Hours of Work

The first regulation aspect under the shop document is monitoring the hours of work of the employees. This will help the employer to monitor the hours of work and decide on the improvements they can make in the same.

  • Prohibition of Employment of Children

Another aspect the regulation cover is the prohibition of the employment of children. These regulations of the shops act help in the prohibition of child labor.

  • Weekly Holidays

The shop act regulation also covers the weekly holidays of the company. Further, ensures that there are weekly holidays for employees and the business establishment has the authority to decide the same.

  • Time Conditions of Payment of Wages

The shop act regulation also covers the time conditions of payment of wages. This helps the employer and the employees get an idea about the payment they can give and the time conditions of the same.

  • Leave Policy

  Leave policy is another aspect you have to cover under the shops regulation. Because people who are looking for jobs will go through the leave policy of the company and decide whether they need the particular job or not. Similarly, the employer will get an idea as to whether the employees are following the policy.

  • Hazard Control and Safety.

  Leave policy is another aspect you have to cover under the shops regulation. Because people who are looking for jobs will go through the leave policy of the company and decide whether they need the particular job or not. Similarly, the employer will get an idea as to whether the employees are following the policy.

  • Termination Policy

Final and the most important aspect to cover in the shop regulation is the termination policy. This will help the employees know the termination policies of the company beforehand

  • Cleanliness and Sanitation

 One of the most important aspects the shop establishment should cover under the regulation is the cleanliness and sanitation facilities in the shop or business establishment. After all, no employee will like to work in dirty and unhygienic conditions.

  • Opening and Closing Hours

The final and the most important thing to cover is the opening and closing hours of the company. Ensure that the shop or business establishment provides the right opening and closing time and in case of modification in the same, mention about the same as well. Thus, these are the regulation aspects a shop or business establishment should cover while starting a business.


Overall, a shop license is an essential document that every shop, restaurant, or any similar business establishment should have with them. For a smooth commencement and running of the same, a valid shop enrollment is mandatory. Because they ensure the welfare and progress of the employers and the employees. Further, lead to the development of the company. So, follow the above-mentioned procedures to ensure a successful business venture in India. And if you need any help from experts related to this field, get in touch with Vakilsearch

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