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Renewal of Shop Establishment License

How does the enactment of the Shops and Establishment Act help people? what is the procedure for renewal of the Shops and Establishment License? Without an enlistment under this Act, there is no taking your business forward. Shops establishment License plays a very important role in the growth of the business. Let's find out how!
Written by:
Abhishek Sahoo
Published on

The Shops and Establishment Act in India aim to help and govern the rules relating to the day to day activities of the people who are involved in the business. It provides for the provision to protect the rights of the employees, regulates how much wages are being paid out, what the working hours for the workers and other provisions relating to their leave and work ethics are. One of the main reasons to enact Shops and Establishment Actis to have a systematic advantage for all employees employed under various establishments, theatres or places of amusement.

Shop and Establishment Act in India

The Shop and Establishment Act is controlled by the Department of Labour and directs premises wherein any establishment, business or call is completed. This Act not only manages the commercial Establishment but also looks after the working of societal, charitable trust and Printing Establishment. This Act manages areas with respect to the working hours, opening and closing hours, shut days, national and religious occasions, additional time work, rules for working of the children, yearly leave, maternity leave, disorder, and easygoing leave, and so forth.


Procedures under this Act

Every shop/establishment is required to register itself under this Act within 30 days of the beginning of work. The entrepreneur is supposed to send to the Inspector (Chief Inspector of Shops or different Inspectors under the Act) of the region concerned, an application structure and necessary charges specifying:

  • Name of the establishment, the business and the administrator, assuming any

  • Postal location of the establishment

  • Such different specifics as might be recommended

The Inspector, on confirming the above-mentioned details will enter the name of the Establishment in the register of Establishments and issue a registration certificate. This certificate must be unmistakably shown at the establishment and should be preserved properly before it expires.

Who are Eligible under this Act?

The Act is pertinent across the country, and all business establishments, for example, inns and diners, event management, theaters, and other diversion houses go under the domain of the Act.

The meaning of a 'Commercial Establishment', as given in the Act is:

  • Any business segment, for example, banking, exchanging or protection establishments, any establishment where people are utilised to do office work or give an administration

  • Lodgings, restaurants, and motel or a little bistro or refreshment house

  • Excitement places, for example, theaters and film lobbies or event congregations

All such previously mentioned business establishments go under the Act, and need to follow the standards and guidelines set by the Act for the treatment of their representatives. Exemptions to the Act differs in each state.

Why shop establishment is mandatory to register?

In most of the country, people register under Shop and Establishment to establish a present record with the bank as the bank does not allow opening an account without alternate verifications. Apart from opening an account, it is very important to have this license in order to avoid unnecessary complications or investigations into the business of the person.

Advantages of Registration

  • It builds up a present record: It can assist a person with opening the present record with the bank by getting this Certificate from Chartered Accountant.

  • Smooth examiner visits: When any investigator from the state government or nearby region visits the premises of your office, you can rest assured having enrolled yourself.

  • No Compliance: It doesn't require any consistency after enlistment. Henceforth, there will only be just one-time cost.

  • Enrolments: It is on the web and the entire procedure can be finished inside two days.

Important Aspects that an Employer or Occupier must be Aware of

  • Working hours: The Act provides that,  no worker shall work for above 9 hours every day and no more than 48 hours per week. Work can be stretched to 54 hours per week for stock-taking or creation of records. In such cases, the business has to give notice of such expansion three days ahead of time.

  • For employing young people: No youngster will be required or permitted to work about the matter of an establishment for over six hours per day, regardless of whether he is an individual from the business' family. Such working youthful people must be given a break each three and a half hours for resting or taking dinners. Such young people and furthermore females, will not be occupied with work for over 8 hours of the day.

  • Holiday (Close day): Before the business announces the occasion or a nearby day he should show a notice of such day preceding such day in the premises. Each shop and the business establishment will stay close on the day. Close days will be announced by the legislature. Furthermore, the business establishment will remain closed on three of the National occasions every year as the Government may endorse.

  • Letters of Appointment: Employer is supposed to give the letters for appointment to workers. It is to be noticed that the inability to issue appointment letters under Sec. 34 of the Act to the worker adds up to 'uncalled for work practice'.

  • The Act requires each business to keep up Records of the leaves taken, long stretches of work, additional time work of all representatives in independent records. The owner of any shop or establishment, in the recommended way, will keep it displayed in the shop or establishment notices putting forward the no. of hours in the week amid which people may as per the arrangements of this Act be utilised about the matter of a shop or establishment.

  • Chief Inspector: The Act additionally manages forces and obligations of the Chief Inspector. The job of the Chief Inspector is very important in executing the arrangements of the Act. It is his obligation to take care that the provisions of the Act are complied with herein.

Renewal of Shops & Establishment License


Shop and Establishment Act License

Any shop or business establishment that starts their business must apply to the Chief Inspector for a Shop and Establishment Act License within the recommended time. The application for the permit in the prescribed manner must contain the name of the business, address of the establishment, the name of the establishment, class of the establishment, number of workers and other significant subtleties as mentioned. On accommodation of the application and survey by the Chief Inspector, the shop or business establishment will be enrolled and an enlistment endorsement will be issued to the occupier. The enrollment authentication must be unmistakably shown at the shop or business establishment.

In the event that the shop or establishment might want to shut down the business, the owner ought to inform the Chief Inspector in writing in the prescribed manner within fifteen days of the end. The Chief Inspector in the wake of looking into the solicitation for the conclusion can expel the shop or business establishment from the register and drop the enrollment endorsement.

Renewal of Shops & Establishment License

The Shop registration process is governed by the state, therefore the procedure may vary differently in every state. However, one should be able to know how to renew their license in spite of the area you are located in. The procedure for the renewal must be completed before the expiry of the original license.

Log on: First you need to Log on to the official website and select the procedure for registration as an individual or any other organization.

Enter login: Enter the login details you received at the time of your registration. Fill in the application form for the renewal and click on submit.

Submit application: By using your earlier application ID, place a request for renewal of your license. The form will require you to re-upload all your documents.

The documents that are  required are as follows:

1. Scanned PAN Card copy of Partners/Directors/Proprietor

2. Scanned copy of Voter’s ID/Passport/Driver’s License

3. Scanned passport-sized photograph

4. Scanned passport-sized photograph

5. Rental agreement/Sale deed of commercial space

6. Number of employees

7. Name of shop/establishment

8. Registers maintained to date

Pay Fees: The fees for the renewal of Shops & Establishment licenses may vary from state to state. The fees in Delhi is Rs. 150. After making payment, you can start checking to see if your application has been approved by the authorities.

Checking Status: The moment you make the 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.