Are you starting your own shop, start-up, or any business establishment? Keep reading to learn all the documents required to set up your business as per law.
Entrepreneurs venturing into business in India are required to adhere to regulatory norms, with mandatory registration of their shop or establishment to obtain a Shop And Establishment License documents. This requirement is governed by the Shops and Establishments Act of the specific state in which the business operates.
To initiate the registration process, business owners can visit the local State Labor Department office or utilize the department’s official website. It’s essential to note that irrespective of the business type and operational status, registration must be completed within 30 days of establishment. This regulatory measure ensures compliance with labor laws and sets the foundation for a legally recognized business entity.
| It’s important to note that businesses falling under the purview of the Factories Act of 1948 are exempt from this registration requirement. |
While the process for obtaining a Shop and Establishment License may vary from state to state, this blog provides a general overview of the common procedures followed by a majority of states, offering insights into the steps involved.
Scope of a Shops and Establishments License
The Shops and Establishments Act plays a pivotal role in regulating the rights and working conditions of employees within India’s unorganized business sector. It outlines the responsibilities of employers concerning various aspects of employment, encompassing wages, working hours, holidays, leaves, hiring and termination procedures, and engagement policies for juveniles and women.
The Act extends its governance to cover a wide array of particulars related to individuals working in commercial facilities, stores, public entertainment establishments, and other similar setups.
Documents Required to Obtain Shops and Establishments License
In general, the following documents are necessary to apply for a shops and establishments license –
- A front view photograph of the shop/establishment, with a visible board with the name of the business in local language
- Certificate of incorporation
- AOA/MOA of the company/LLP agreement of the company
- A copy of the PAN card of the business owner/business
- Copy of the partners’ consent or the Board resolution
- List of partners/directors, along with their address & ID proof
- Proof of address of the company /proprietorship/partnership/LLP ( lease deed/utility bills etc)
- Details of existing employees
Note – A statutory fee is also required to be paid along with these documents, and the amount varies in each state. Some states base the charge on the kind of establishment, while others base it on the number of people employed.
How to Renew Shops & Establishments Registration?
To renew the license for your store or establishment, it is imperative to initiate the process within 15 days of its expiration, with the renewal period typically spanning 5 years in most states. The steps outlined below offer insights into the renewal process in Maharashtra, providing a general understanding applicable to other regions in India:
- Visit the Department of Labor website at lms.mahaonline.gov.in.
- Select ‘Renew Your License’ from the relevant drop-down menu.
- Utilize the login credentials furnished during the initial registration to complete the renewal application by providing the necessary details.
- Upon submission, you will receive an application ID, which can be used to track and follow up on the renewal.
- The form will prompt you to upload the documents previously submitted during the registration phase.
- Following document upload, proceed to make the renewal fee payment.
- After successful payment, the status of your renewal application will be ‘Under Scrutiny,’ and the verification and approval process typically takes about a week.
- Once the process is complete, the status will change to ‘Completed,’ and you can download the new certificate from the ‘Download’ button available on your screen.How to Cancel the Shops & Establishments Registration?
When closing your shop or business, it is crucial to inform the relevant labor department official within 10 days of the closure. To cancel your shop and establishment license, adhere to the following procedure:
- Submit an application for cancellation, including the shop/establishment’s registration number and necessary details such as name and address.
- Clearly state the reason for closure/cancellation in the application form.
- Include a copy verifying that all legal dues concerning employees have been fully paid.
- After reviewing the application and ensuring its correctness, the concerned officer will issue an appropriate order to cancel the existing registration.
Get Help!
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