Shop and Establishments Registration

Registering your shop or office with local municipality License is now easy!

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What is Shop and Establishments Registration?

The shop licence refers to a type of legal permission that legally allows people to do business in a particular place. If any individual has a physical shop or office, it is essential to obtain a license. The license acts as proof of a particular business being done at that place. Generally, the time limit provided for the registration is 30 days from the date of establishment.

The Shop and Establishment Act in India is promoted by the state governments, but it slightly varies from state to state. All the shops and commercial establishments functioning within a particular state are covered by this act. The primary aim of such registration is to function in compliance with the laws of the State and to guarantee benefits for workers. The licence will serve as an evidence of business operations on many other registrations and is also useful on opening a bank account.

Benefits of Shop and Establishments Registration

The right of doing business

If you can provide a legal body with evidence for your company (such as a partnership firm or a business owner firm) you would have the right to do business at your place or in your state of residence.

Facilitates smooth inspection

The local municipality and the government authorities shall conduct visits and periodic inspections to verify if shops and establishments in a specific locality are operating properly or not. If you have a shop & establishment licence in place, you can easily and smoothly carry out such inspections.

Benefits of the Government

The Department of State DIC is a policy-making agency for all small enterprises in the State. There are many schemes in place to support small businesses from time to time, and businesses with a shop & establishment licence will only support from these schemes. It's imperative, therefore, that you receive this licence if you don't have one so far.

Simple opening of the current business account

As per the RBI standards, a separate business account must
be opened for every shop and establishment. This is to ensure
that it represents the day-to-day transactions. Banks need
you to have a legitimate entity proof to open such an account.
Perhaps the shops and the establishment licence would allow
you to open this account easily.

Documents Required For Shop and Establishments Registration

PAN Card

A self-attested copy of PAN card Of Proprietor / Partner / Director

Address Proof

Self- attested copy of address proof of Proprietor / Partner / Director

Proof of Establishment

Rent agreement / Ownership Deed / Lease Deed NOC from the owner if rented property

Incorporation Documents

MoA – AoA of Company, Partnership Deed/ LLP Agreement, etc. along with registration certificate, if any, recently clicked the photo of the establishment.

Easily register your shop or office with local municipality

Frequently Asked Questions (FAQs)

A factory is a place which has been established by a company specifically to manufacture goods sold by that company. An establishment can be any company, business, government agency, school, etc, which has been set up, or established, for a particular purpose.
Both are Acts to regulate conditions of service of workers engaged. While the Factories Act is applicable to establishments wherein a manufacturing activity is carried out the Shops and Commercial Establishments Act is applicable to establishments which do not fall under the definition of factory, mine or plantations.
When an entity employs people who may be casual workers, full time employees, contract based etc, to regulate the work conditions and ensure the workers’ rights are protected, it is mandatory to get registered under the Shops and Establishments Act, informally called Shop Licence.
The Establishment is a term used to describe a dominant group or elite that controls a polity or an organization. It may comprise a closed social group that selects its own members, or entrenched élite structures in specific institutions.
Shop and Establishment Act is not applicable to factories. They are governed by the Factories Act, 1948. Note II. The government may declare any establishment to be considered as an establishment under this Act, by an official notification.
This registration is mandatory for several reasons, including the opening of the current account in a bank. This Shop and Establishment Act license, forms as a basic license and a proof of your business to apply for other registrations required to run a business in India.
Gumasta License is necessary for all businesses employing 10 or more workers in a shop or establishment. This certificate or license helps in the regulation of the benefits of employees in the condition or situation they work and aspects regarding payment and rules of their employment.

Easily register your shop or office with local municipality