Procedure to get shop and establishment license: The shop and establishment registration is a basic business registration mandatory for all shops and commercial establishments in a particular state or union territory to carry out business activities. Regulated under the Shop and Establishment Act of every state, shops and premises from where goods and services are sold, offices, warehouses, restaurants, hotels, theatres, places for public entertainment or any other place where retail and/or wholesale goods or services are rendered are required to get their shop and establishment license.
Moreover, businesses operating from home and online or e-commerce businesses except for factories, which are regulated under the Factories Act, also require the license under the Shop and Establishment Act usually within 30 days of starting the business. The license, as a proof of your registered business, also helps in securing a bank loan or opening a bank account.
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The shop and establishment license regulates wages, compensation, leaves and holidays of employees, work hours, breaks during work hours, opening and closing hours, and other conditions for employees at work.
Importantly, the process to get the shop and establishment license is slightly different in every state by the respective labour department along with the documents required and fee involved. However, there are some common steps and documents, for example, establishment’s ID proof, owner’s ID proof, PAN card, employment details, memorandum and articles, details of directors, etc.
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To illustrate the online procedure, here is how you can get the shop and establishment license in Delhi:
- Visit the Delhi government’s labour department’s website labourcis.nic.in and click on ‘Online Registration’
- Fill Form A Part- I on the screen with details including the name of the establishment, category, address and contact details, along with shop details such as the name of employer, nature of business, and click on ‘Continue’
- Fill Part- II for employees’ details such as the number of employees, date of starting the establishment, employer’s family members working in the establishment, number of people occupying positions of management or engaged in their confidential capacity and then click on ‘Register’
- Your registration certificate will come up titled ‘Registration Certificate of Establishment’ bearing certificate number
- The certificate is free of cost and without the submission of any document. The validity of the certificate in Delhi is 21 years.
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