The Shops and Establishments Act comes under the Department of labour.
♦ What are the Premises regulated by the Shop and Establishment Act?
The shop and Establishment Act in India is promulgated by the state and may slightly differ from state to state. However, as per the act, all the shops and Commercial establishments operating within each state are covered by the respective Shop and Establishment Act.
Shops are defined as premises where goods are sold either by retail or wholesale or where a service are rendered to customers and includes an office, a store-room, godown, warehouse or workhouse or workplace. Establishments are defined as shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment. However Factories are not covered by the shop and establishments act and are regulated by the Factories Act, 1948
♦ What are the various aspects regulated by the Shop and Establishment Act?
Here are few areas regulated by the shop and establishment act:
Prohibition of employment of children
Hours of work
Interval for rest and meals
Employment of young person or women
Opening and closing hours
Wages for holidays
Time and conditions of payment of wages
Deduction from wages
Lighting and ventilation
Precautions against fire
♦ When a Shops and Establishment Act is is required?
Every Shop and Establishment needs to register itself compulsory under this Act within 30 days of commencement of work. It is basic license, many other licenses require this as proof of a commercial business, and most of the banks will require one to furnish this license to open a current account.
♦ What Information is required to be furnished for Shop and Establishment License Registration?
Name and Address of Firm Name
Nature of Establishment like Nature of Shop i.e. like clothing store, Furniture store etc.
Number of Employees
List of management employees and directors, if applicable
♦ What Documents are required to be furnished for Shop and Establishment License Registration?
Aadhar Card / Voter ID/ Driving License
Photo of Shop with owner
Rent Agreement (Electricity bill if rented)
Shop or Business Address Proof
Additional Business licenses necessary to start a business(Certificate of Incorporation (COI), Memorandum of Association(MOA), Articles of Association(AOA), Limited Liability Agreement(LLP)
As In India the Shop and Establishment Act may slightly differ from state to state as each state follows their separate operation
♦ Process for Obtaining License in Punjab:
For Punjab the complete process of registration can be completed online. This service of registration is availed by submitting an e-form available on labour department website at https://pblabour.gov.in/LicenceDescriptions/Details/5
As specified under Rules of Punjab Shops and Establishments Rules, 1954, Form F & B needs to be filled to get the Registration Certificate for any establishment. The form require certain details like name and category of establishment , complete address , details of the shop/establishment and the shop owner, details of employee and nature of business.
After the submission of the Application The Labour Inspector verifies the application and if approved, issues a registration certificate to the applicant, after that the shop or commercial establishment will be registered.
This registration certificate is to be displayed at the shop or commercial establishment and is to be renewed regularly and systematically by the Business owner.
♦ Note: After obtaining the Registration
If there is any change to be made after obtaining the registration Certificate, same should be notified to the Labour Inspector.
Registration certificate to be obtained within 90 days of the commencement of the business placement agencies providing domestic services are also mandatory to be registered under the Act.
♦ Records to be maintained under the Shops and Establishment Act:
Records to be maintained under the Shops and Establishment Act related to employment records, fines, deductions, advances, salary and holidays etc. these requirements may vary from state to state.
♦ In case of cancelling the license registration
Procedure to cancel Shops and Establishment License
The prescribed form for the cancellation of application should be filled in fully and coherently.
The same should be applied within 10 days of actual closure of the establishment.
The registration number of the establishment should be mentioned on the cancellation form including the name, business address and other relevant information.
The reason for cancellation of the license must be mentioned in the application form.
Make sure the reasons cited for cancellation are valid.
Finally a copy of paid legal dues of employee(s) should be attached.
♦ What are the Advantages of Shop and Establishment License?
Legal entity proof: that is the proof that provides the right of doing business in particular region or state.
Business bank account: act as proof of legal entity proof for opening a current bank account.
Smooth inspection: as state government and local municipality carry out periodic inspection visits for monitoring the proper operation of shops and establishments along with license as well.
Detailed guide on the process can downloaded by clicking here.