Shop Act Registration
Small hotels and shops must obtain a Shop and Establishment License to operate legally. The requirements vary by state; for example, Rajasthan’s process differs from Uttar Pradesh’s.
Applicants must understand both Central and State rules before applying, as these regulations govern employees in both the organized and unorganized sectors. Compliance with working conditions and employment terms is mandatory, making adherence to state-specific requirements essential.
Meaning of Shop and Establishment Registration
Entities Requiring Shop and Establishment Registration
Shop and Establishment Registration is a legal permit required to run a business in India, regulated by the Department of Labour. Every shop or establishment must register under the Act within 30 days of starting operations. The license serves as proof of business existence.
A business can be registered in multiple ways:
- As a Business Entity in India
- As a Startup in India
- As an MSME Enterprise
- Under the Shop and Establishment Act of the respective state.
The following businesses must register under the Shop and Establishment Act:
- Commercial establishments – Trading, insurance, banks, etc.
- Service providers – Call centers, consultancies, etc.
- Food & hospitality – Cafés, restaurants, hotels, eateries, etc.
- Entertainment businesses – Cinema halls, theatres, amusement parks, etc.
When to Apply for Shop Act Registration in Jaipur?
Any business that hires employees—full-time, contract, or casual workers—must register within 30 days of starting operations to ensure compliance with labor laws.
How to Determine if You Need Shop and Establishment Registration?
- Check business category – Verify if your business falls under “shop” or “commercial establishment” as per the Act.
- Understand state-wise exclusions – Rules may vary from state to state.
- Review state regulations – Each state has a list of businesses covered under the Act.
- File for registration – If your business qualifies, apply for registration within 30 days of establishment through the online portal.
Employer Declarations at the Time of Registration
- Working hours and rest intervals of employees
- Number of workers employed
- Opening and closing hours of the establishment
- Health and safety measures in place
- Overtime wages structure
- National and religious holidays observed
Documents Required for Shop Act Registration
- Photo of the establishment with name board & director
- List of directors/management with ID & address proof
- Details of company, employees, and salaries
- Establishment’s address proof
- Affidavit
- Copy of PAN card
How to Apply for Shop and Establishment Registration?
- Visit the state government’s website for online registration.
- Fill out the prescribed application form and upload the required documents & fee.
- After submission, a Labour Department inspector will verify details.
- Upon approval, the registration certificate/license will be issued.
Benefits of Obtaining a Shop and Establishment License
1. Helps in Opening a Current Business Account
Banks require a legal entity proof to open a current account as per RBI norms. The Shop & Establishment Certificate makes the process easy.
2. Serves as Proof of Legal Entity
This certificate acts as legal proof for businesses like partnership firms and proprietorships, allowing them to operate within the state.
3. Smooth Inspections
Regular municipal and government inspections are conducted to ensure compliance. Having this license helps in avoiding legal issues during such inspections.
4. Access to Government Benefits
State DIC Departments introduce schemes for small businesses, and only registered entities with a Shop & Establishment License can avail these benefits.
5. Less Compliance
The registration comes with minimal legal formalities and involves only a one-time cost.
Records to Be Maintained Under the Shop & Establishment Act
- Employment details
- Fines, deductions, and advances
- Salary records
- Holiday records
Amendment in Shop & Establishment Registration
Any changes in registration must be reported to the concerned officer within the prescribed time.
In case of business closure, the employer must apply for surrendering the registration, after which the officer will cancel it upon verification.