In July, 2020, the Karnataka Government announced its plan to remove the process of surprise inspections under 12 Acts, including the Shops & Establishment Act of 1965. This is said to be an attempt to improve the ‘ease of doing business’ rankings for the State.
The shop and Establishment Act registration is one of the mandatory requirements of all businesses which operate from an establishment or shop. Any changes made in the details or the closure of such establishments needs to be initiated to the inspector within 15 days of the said change or closure.
If there is a regulation that applies to all Indian businesses, both big and small, it’s the Shops & Establishments Act. Without a registration under this Act, there is no taking your business forward. In fact, it is the license that a bank will ask you for when you approach them even to open a current account.
The shop and establishment license aims to regulate day-to-day treatment of employees and set a standard for employment. Therefore, it regulates how wages are paid out, how many hours can be worked at a stretch, the number of leaves that must be granted, the number of holidays that must be granted, the terms of service and other work conditions of people employed in shops and commercial establishments.
Renewal of Shops & Establishment License
As this registration is governed by the state, the procedure may be a little different in every state. However, you should be able to understand the procedure no matter which state you’re located in using this example of a renewal application in Maharashtra. Do note that renewal must be completed before expiry of the license.
Log on: You would first need to log on to www.lms.mahaonline.gov.in and select the registering procedure as an individual or an organization.
Enter login: You would have received a login at the time of registration. Enter the details and fill in the application with your details and submit.
Submit application: Using the application ID, request a renewal of your license. The form will prompt you to re-upload all your documents.
The Documentation Required Is as Follows
- Scanned PAN Card of Partners/Directors/Proprietor
- Scanned copy of Voter’s ID/Passport/Driver’s License
- Scanned passport-sized photograph
- Scanned passport-sized photograph
- Rental agreement/Sale deed of commercial space
- Number of employees
- Name of establishment
- Registers maintained to date
Pay Fees: The fees for renewal of Shops & Establishment License in Maharashtra is Rs. 150. Make payment and now begin the task of regularly checking to see that it has been approved.
Checking Status: The moment you make payment, your application status will change to ‘Under Scrutiny’. Until this status changes to ‘Completed’, your job is not done here. It usually takes up to one week for this change to happen.
Download Certificate: Once it’s done, you may ‘Download Certificate’, which is an option you will see on the right side of your screen.
Who Must Apply for Shops Act Licenses
Any shop or commercial establishment that commences operations must apply to the Chief Inspector for a Shop and Establishment Act License within 30 days. On submission of the application and review by the Chief Inspector, the shop or commercial establishment will be registered and a registration certificate will be issued to the occupier. The registration certificate must be prominently displayed at the shop or commercial establishment and renewed periodically, as per the act.
The inspector, on verifying the statement, shall register the establishment in the register of establishments and issue a registration certificate. This certificate has to be prominently displayed at the establishment and needs to be renewed before it expires. If there is any change in the initial statement, the same has to be communicated within 15 days to the Inspector and he will make changes in the register of establishments and issue a fresh registration certificate.
Download the PDF format to know more about Shop & Establishment.
- Shops and Establishment Enrollment For Distributors
- Shop and Establishment License Verification
- Shop and Establishment Registration Eligibility