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Shops and Establishments License In India

5,000+ Shop and Establishment registered since 2011

No more delays or difficulties! Register your business with India’s #1 provider of business incorporation services. Get a 7 day Guaranteed document upload to the MCA or receive a full refund T&C* 

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₹3,990  ₹999

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Shop and Establishment Registration

  • All states have their own Shop and Establishment Acts but adhere to the same general provisions. State Labour Departments regulate Shop Act. According to this shop act registration, licenses are issued by the respective states. Therefore they differ slightly from state to state. The shop and establishment registration Act regulates all shops and commercial establishments within the state.
  • As defined by the Shop and Establishment Act, a shop is where goods are sold or provided, whether retail or wholesale or where services are rendered. Commercial establishments generally employ people for office work, such as commercial, financial, trading, or insurance companies. Offices, godowns, storerooms, and warehouses are examples of commercial establishments. The term includes hotels, boarding houses, restaurants, cafes, theatres, and other public entertainment venues. However, factories and industries are not covered by this shop act registration. They are governed by the Factories Act 1948 and the Industries (Development and Regulation) Act 1951.

Benefits of Shop and Establishment License

  • Legal Right to Conduct Business

Obtaining a shop and establishment license and providing evidence of business, such as a partnership firm or sole proprietorship, gives the business owner the legal right to operate within the Act’s jurisdiction. Law enforcement officials cannot harass and bother them.

  • Ease of Opening Business Bank Account

According to RBI regulations, every business must have a separate business account to manage its money. Under the Shops and Establishments Act, only a certificate can be used to create this business account.

  • Hassle-free Inspections

Shop and Establishment License provide access to government schemes designed to promote small businesses. Businesses registered under the shop act can also access low-interest bank loans, financial plans, and programmes.

  • Availing Government Benefits

Shop Act License provide access to government schemes designed to promote small businesses. Businesses registered under the shop and establishment legislation can also access low-interest bank loans, financial plans, and programmes.

  • Encourage Expansion

By giving a legal entity status, a business owner who is 100% committed to following the shop act registration compliances will be able to strengthen the entity’s market position, allowing the business owner to reach out to newer consumers.

Steps Involved In Shop Act Registration

 
Step 1: Contact our Experts

Book a slot with our experts from KhataDekho. They will resolve all your queries about the shop and establishment registration and initiate the process

Step 2: Submit your Documents

Provide all the documents required for shop and establishment registration to our associates from KhataDekho for the documents as per your requirement. You have to submit the same

Step 3: Inspection & Approval

During an inspection, the labour department will verify the information you provided and the documents attached to your application. Usually, an inspection isn’t needed. The authorities usually approve your application after reviewing your application and visiting your business location. We will deliver your shop act license to your doorstep.

Documents required

  • PAN Card of Directors
  • PAN card of all partners.
  • Address proof of all partners.
  • Utility Bill of the registered office
  • A No-Objection certificate from the landlord
  • A copy of the rental agreement.
  • Get your DSC
  

Eligibility Criteria to Register Under Shop and Establishment Act 1947

  • The shop or establishment should be located within the territorial limits of Tamil Nadu
  • The shop or establishment should not fall under the purview of any other legislation, such as the Factories Act, 1948
  • The shop or establishment should be engaged in commercial activities, such as trading, banking, insurance, or entertainment
  • The shop or establishment should have at least one employee, including the owner, on its payroll.

Timeline

Free Consultation and Documentation
  • Our Expert team resolve your queries. Our consultation is completely free.
Action Required by you
  • You Need to fill up the draft, Make Payment and Submit Documents to Khata Dekho
Action By Khata Dekho
  • Once the Documents are uploaded we’ll start the step -by-step process of Incorporation

Frequently Asked Questions (FAQs)

All business operations in Tamilnadu are governed by the Tamilnadu Shops & Establishments Act. According to the Act, a ‘establishment’ is any store, business, eatery, retail outlet, restaurant, amusement facility, theatre, or other institution that the State Government may designate in a notification for the purposes of the Act.
The validity is upto 5 years from the date of establishment.
  • 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
No! The establishments of central and state government are exempted from the Shop Act License
The shop establishment license is valid across the whole nation. To regulate entities within a state’s region or border, each state and UT has its own law. However, all states’ acts’ general provisions are similar.
The Factories Act of 1948 governs factories, hence factory owners are not needed to register under the shop act registration.

The following information is included in the registration form for the shops and establishment certificate:

  • Nature of the business
  • Category of the establishment
  • Name of the manager
  • Full name of the employer
  • Date of establishment commencement
  • Name and address of the establishment
  • Employee details
All shops and establishments must apply for registration under the Act within 30 days of opening, regardless of whether they employ one person or more.
The Shops and Establishment Act’s main goal is to ensure that all employees in the establishment receive equal rights and benefits across all foundations.

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