What is Shop and Establishment Registration?

 

It is a basic license/registration required to legally operate any shop, commercial establishment, or business in a state. It is governed by state labor laws and regulates the working conditions of employees, including:

  • Hours of work and rest intervals.
  • Weekly holidays and annual leave.
  • Payment of wages and compensation.
  • Opening and closing hours.
  • Prohibition of employment of children, etc.

Who Needs to Register?

The Act typically applies to all premises where any trade, business, or service is carried out. This includes:

  • Retail and wholesale shops.
  • Commercial offices (including work-from-home setups in some states).
  • Service-based entities like insurance companies, banks, and consultancies.
  • Warehouses, godowns, and storerooms.
  • Restaurants, hotels, theaters, and places of public amusement.
  • Even businesses with no employees may be required to register.

Note: Registration must usually be done within 30 days of the commencement of business.

General Registration Procedure (Varies by State)

Most states now offer a simplified online registration process through their respective Labour Department portals (e.g., the Delhi Labour Department portal or the UP Nivesh Mitra portal).

  1. Visit the State's Labour Department Portal: Go to the official website of the Labour Department for the state where the establishment is located.
  2. Fill out the Application Form: Provide details like the establishment's name, address, category, nature of business, full name of the employer, date of commencement, and employee details.
  3. Upload Documents: Upload the required scanned copies of supporting documents (see below).
  4. Pay the Prescribed Fee: The fees are generally nominal and often vary based on the number of employees.
  5. Verification and Issuance: After submission, the department reviews the application. Some states may conduct a physical inspection. Once approved, the Registration Certificate is issued, which you can typically download online.

Common Documents Required

While documents can differ slightly, you will typically need:

Document Category

Specific Documents

Owner's Details

Aadhaar Card, PAN Card, Photograph, Mobile Number, and Email ID of the Proprietor/Partners/Directors.

Establishment Details

Proof of Business Address (e.g., Latest Electricity Bill, Rent Agreement/Lease Deed, or Sale Deed).

Business Proof

PAN Card of the business entity (if not a proprietorship), Partnership Deed, or Certificate of Incorporation (for Company/LLP).

Other

Details of all employees (name, date of joining, job role), and the fee payment challan.

 

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Location: India

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