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Shop And Establishment Registration
Delhi Shop And Establishment Registration
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Shop And Establishment Registration
Delhi Shop And Establishment Registration, also called labor registration is a state based registration and as a business owner of a shop or establishment, you are compulsorily required to get the same registered under the Shops and Establishment Act (Shop Act) within 30 days of establishing it, whether or not you have employee. The shops and commercial establishments covered under the Act must mandatorily apply for registration under the respective state Act. All establishments and business, including the people working and maintaining a business from home, must obtain a Shop and Establishment Registration Certificate or Shop License (“Certificate”) under the Act.
The proprietors who run a business from home without having any physical store or premises are also required to obtain this Certificate. The proprietors of e-commerce business or online business, or online stores and establishment must register under this Act and obtain the Certificate. Every Shop Registration in Delhi and commercial establishment should register itself under the Act within 30 days of commencement of business.
The Certificate or the Shop Registration in Delhi License acts as a basic registration/license for the business. This Certificate is produced for obtaining many other business licenses and registrations. It serves as proof of the incorporation of commercial establishment or shops. It is also useful when the proprietor of the business wants to obtain a loan or create a current bank account for the business. Most banks will ask for this Certificate for opening a current bank account.
Benefits of Shop & Establishment Registration in Delhi
Proof of Legal Entity – The shop and establishment registration certificate acts as legal proof of a business existence.
Facilitation of Commercial Bank Accounts – This certificate fulfils one of the key documentary requirements for opening a commercial checking account.
Absence of Compliance Burdens – Businesses must not adhere to frequent compliance requests post-registration.
Efficient Inspection Processes – Possession of the shop and establishment registration certificate facilitates smoother inspections by state or municipal authorities.
Documentation for Shop Registration in Delhi
Shop or Business establishment address proof.
ID proof of the proprietor.
PAN Card of the proprietor.
Details of the employees.
Process for shop act registration
- Step-1: Gathering information
- Step-2: Submission of application
- Step-3: Issue of shop license
Which entities are required to obtain the Delhi Shop And Establishment Registration
The following entities are required to obtain the Shop and Establishment Act Registration:
- Retail and wholesale shops
- Premises where services are rendered to customers including office
- Workhouse or workplace used for trade or business
- Theatre or place of public entertainment or amusement
- Commercial establishment
- Storeroom, warehouse or godown
- Restaurant or eating house
- Residential hotel
Regulations under the Shop and Establishment Act
The Act, among other things, regulates the following matters-
- Hours of work, annual leave, weekly holidays.
- Payment of wages and compensation.
- Prohibition of employment of children.
- Prohibition of employing women and young persons in the night shift.
- Enforcement and Inspection.
- Interval for rest.
- Opening and closing hours.
- Record keeping by the employers.
- Dismissal provisions.
Penalties for Not Having a Shop Act License
Not obtaining or renewing the Shop Act License can lead to various penalties:
- Fines:Businesses may have to pay large fines.
- Limits on Business Activities:There could be restrictions on how the business operates.
- Risk of Imprisonment:Responsible individuals might face imprisonment in certain situations, especially in cases of repeated or serious violations.
- Risk of Business Closure:The business might receive a notice to close down, either temporarily or permanently.
Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.
Under the Act, a shop is any premises where goods are sold or services are rendered, including offices and warehouses related to such activities.
These include entities engaged in banking, trading, or insurance, administrative services, and any other business activities as defined by the Act.
Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.
Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.
The validity and fees of the Shop and Establishment Certificate differs from state to state. Some states provide the Certificate valid for a lifetime, while other states provide the Certificate valid for one to five years. The registration application needs to be renewed before the expiry of the period of registration.
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