The Shop and Establishment Act is a kind of trade license which is granted by the State Authorities and every state has prescribed different rules and regulations to get oneself registered. If a sole proprietor has a shop as a place of business it can get itself registered under Shop and Establishment Act.
Shop and Establishment registration is state wise registration The main objective of this Act is to regulate payment of wages, terms of service, holidays, leaves, work conditions, hours of work, overtime work, rules for employment of children, description of labour, maternity leave and benefits etc. for people employed in shops and commercial establishments.
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The State Government authorities and local municipality keeps a check whether the shops & establishments in a particular locality are functioning properly or not by visiting and making regular inspections. You can get over such inspections quickly and smoothly if you have the shops & establishment license.
The State DIC Department is the policy-making body for all small businesses in a State. The government provides certain schemes to benefit small businesses from time to time and businesses having the shops & establishment license. Therefore, it’s beneficial for you to obtain this license, if you have not taken it so far.
As per the RBI and banking norms, every shop and establishment needs to have a separate business account and minimum two business registrations are required, so this can help you in a better manner. Perhaps, the shops and establishment license will help you to open a bank account with ease.
As there is no specific class of registration of any sole proprietorship firm, they can opt for this license as there is no regular compliance needed in this case as compared to LLP or a Private Limited Company.
All the commercial establishments, such as the amusement parks, theatres, hotels, and eateries, and other entertainment houses, as well as any other such public amusement places, are liable to get registered under the act. Commercial establishment means:
- Any commercial sector, such as banking, trading or insurance establishments.
- The hotels, eateries and boarding houses or a smaller café or refreshment house.
- Any establishment where individuals are employed or engaged to do office work or provide service.
- Amusement and entertainment places such as theatres and cinema halls or amusement parks.
- Passport Size Photograph of Employer
- Photo of shop along with owner with banner
- List of Employees with their wages and Weekly holidays
- Address proof of Establishment [Copy of shop's rent agreement (if on rent) or Shop's ownership document proof (if owner of shop)] and electricity bill.
- Affidavit (Declaration Form)
- Photo ID Proof (PAN Card/Driving License/Aadhar Card/Passport)
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