Phoenix Auditing

Shops and Establishment Registration

  1. What is Shops and Establishment Act?
  2. What is the meaning of shop and establishment?
  3. Is Shops and Establishment Act applicable to factories?
  4. What is the difference between trade license and shop and establishment?
  5. Who should get Shops and Establishment Registration done?
  6. What are the documents required for registration?
  1. What is Shops and Establishment Act?

Shops and Establishments Act, enacted by every state in India is to regulate conditions of work and to provide for statutory obligations of the employers and rights of the employees in un-organized sector of employment and other establishments in their jurisdiction.

2.What is the meaning of shop and establishment?

“Establishment” means a shop, commercial establishment, residential hotel, restaurant, eating house, theatre, or other place of public amusement or entertainment to which this Act applies.

3.Is Shops and Establishment Act applicable to factories?

Factories are not covered by the shops & establishments act and are regulated by the Factories Act, 1948.

4.What is the difference between trade license and shop and establishment?

An individual who is going to commence any business or shop needs to get the business registered with the local government in Shop Establishment while trade license is a permission given to a person to carry out a particular business or trade.

5.Who should get Shops and Establishment Registration done?

This license is mandatory for all business entities, even if you are working from home. It covers – shops, commercial establishments, restaurant, hotel, theatre, public amusement, and retail trade/business. Every establishment needs to register itself within 30 days of commencement.

6.What are the documents required for registration?

  • Proof of establishment – any lease deed, Electricity / Telephone bills, etc.
  • PAN card of proprietor
  • Address proof of proprietor
  • Details of employees / Manager of the establishment

Fee for registration differs from state to state.