How to Take Registration of Shop and Commercial Establishment in India?

How to Take Registration of Shop and Commercial Establishment in India
Karan Singh
| Updated: Feb 05, 2021 | Category: Government, Shop and Establishment

License or Registration of Shop and Commercial Establishment is required under the Shop and Establishment Act, and it comes under the Department of Labour of the State Government. In India, most of the businesses like cafes, hotels, shops, restaurants, etc., are controlled under the requirements of the Shop and Establishment Act. The primary objective of the Shop and Establishment Act is to provide proper working conditions to the labours and take care of their wages and rights. Also, below you can check who can take License or Registration of Shop and Commercial Establishment in India:

  • Service Centers.
  • Hotels.
  • Entertainment houses.
  • Amusement Parks.
  • Warehouses, Godowns, and Store-rooms.
  • Hotels, shops, and restaurants.
  • Wholesalers or the retailer’s shops and establishments.

Under the Shop and Establishment Act, the rules and regulation may vary from state to state, but the primary aim remains the same. Scroll down to check more information regarding the process to take registration of Shop and Commercial Establishment.

Why is it Compulsory to take Registration of Shop and Commercial Establishment in India?

Generally, for opening a current bank account in the name of the designated bank business, individual getting registration under the Shop and Establishment Act. Moreover, opening a bank account, it is more noteworthy to have a Shop and Establishment License; otherwise, the authorized inspector inspecting the business premises may cause needless problems for the said businessman.

Benefits of obtaining the Shop and Commercial Establishment License

Following are the benefits of obtaining Shop and Commercial Establishment License:

  • This License gives you legal recognition.
  • It essentially forms a basic license.
  • When you apply for any other registrations in India, its work as a business proof.
  • The registration is compulsory for several reasons like opening a bank account in the name of Shop or Establishment.
  • If you need to raise investment through bank loans, in that case, the License is required to prove their validity.

Documents Required for Registration of Shop and Commercial Establishment License

Following are some vital documents required to take registration of Shop and Commercial Establishment:

  • Submit the identity proof of the employer such as Aadhar Card, PAN Card, Voter’s ID, Driving License, and Passport.
  • Submit the latest passport-sized photograph of the employer.
  • In the case of rented premises, submit a copy of the Lease Deed or Rent Agreement.
  • Submit any latest utility bill such as electricity bill, water bill, telephone bill, gas bill of the working premises.
  • Also, submit a photo of Shop or Establishment.

Following are some other documents required as per the Establishment or business:

  • Submit a list of Trustees in the case of a Trust.
  • Submit MOA or Memorandum of Association.
  • Submit a list of a number of Chairman and Members in case of a Co-operative Society.
  • Submit a Partnership Deed along with all the essential information regarding the name of the firm, name, and signature of all the partners with the share percentage of each partner.
  • Submit a copy of the permission granted by the Reserve Bank of India.
  • Submit a copy of COI (Certificate of Incorporation) issued under the Companies Act, 2013.
  • Copy of the Certificate of Registration (CoR) which is granted by the Charity Commissioner.
  • Drug License.
  • FSSAI License.
  • IEC Certificate or Import Export Code Certificate.
  • No Objection Certificate (NOC) issued by the Police Department for the opening of a Cybercafé and also submit a NOC issued by the Municipal Corporation for the Flour and Masala Mill opening.
  • Submit a certificate issued by the SECI to the Share Broker.
  • RTO Transportation Permit.
  • A Resolution showing the list of proposed directors.
  • A license issued by the Department of Police for initial of security services.

Also, Read: What is the Procedure to apply for the Shop and Establishment License?

Procedure to take Registration of Shop and Commercial Establishment in India

Following is the process to obtain Registration of Shop and Commercial Establishment in India:

Procedure for Registration of Shop and Commercial Establishment
  • Step 1: Download the Application Form: The initial step of the registration process is to download the application form from the website of the respective state in which the Shop or Establishment is situated.
  • Step 2: Fill all the Essential Details: Once you download the application form from the website of the respective state, then the business owner is required to fill all the essential details as asked in the form. Following is the list of essential details that are required to fill:
  1. Name of the designated Shop and Commercial Establishment.
  2. Details and name of the proposed employer.
  3. Name and details of all the employers working at the time.
  4. Detailed address of the Establishment with the NOC (No Objection Certificate) or the Rent Agreement, only in the case of rented premises.
  5. PAN Card details of the proposed employer.
  • Step 3: Submit the Application Form: Once you fill all the required details as we mentioned above, then you need to submit the application form either to the Inspector/Chief Inspector of the Shop and Establishment Act together with a specific amount of fees.
  • Step 4: Verification of the Application Form: After submitting the application form along with all the essential documents, the higher authorities will check and verify the same.
  • Step 5: Issuance of Shop and Commercial Establishment License: Once the higher authorities verify the documents and application, then they will issue a Registration Certificate to the proposed Shop and Commercial Establishment. The process of obtaining registration of Shop and Commercial Establishment might take around 15-20 working days in the major cities, and the same will vary from one state to another.

Renewal Process under the Shop and Establishment Registration Act

It is mandatory to get renewal of License/Registration of Shop and Commercial Establishment online before it gets expired. For this, you may hire a legal consultancy, who knows the state laws.

Following is the procedure for renewal of License in a state:

  • Go to the site of an individual state for the Shop and Establishment act and log in.
  • Enter your Login credentials, which was received at the time of registration.
  • Then, select the registering procedure as an organization or an individual.
  • Select renewal of your License.
  • Re-upload all your documents as mentioned below:
  1. PAN card of Directors/Partners/Proprietor.
  2. Copy of Rental Agreement or Sale deed of commercial space.
  3. List of the number of employees.
  4. Name of the Establishment.
  5. The Registers maintained until now.
  6. Copy of Passport/Driving License/Voter ID.
  7. Passport-sized photo.
  8. After uploading all the documents, make payment of fees (it may vary from state to state).
  9. The check the status from time to time until it turns completed.
  10. After the completion, you can download the certificate from the site.

Conclusion

The Registration of Shop and Commercial Establishment is a license that offers a company with a legal identification or recognition in terms of carrying on a profession, trade, business. This License makes a company or entity a registered business establishment in the laws’ eyes, and they don’t face any problem at the time of inspections or any government surveys.

Also, Read: Shop and Establishment License in India: A Complete Overview

Spread the love
Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

docsbizkit
 

Related Articles

Transfer of Title under RERA
| Date: Jan 22, 2021 | Category: RERA

Transfer of Title under RERA – A Complete Guide

The transfer of title under RERA means it is an act of transferring the property ownership from one individual to another. Before transferring the ownership to other the promoters and...

Read More
BIS Certification for Footwear
| Date: Sep 10, 2022 | Category: BIS

BIS Certification for Footwear

In a recent notification, the Department for promotion of industry and internal trade stated that footwear manufacturers are required to obtain BIS certification. If the manufacturer wants to sell leather-based...

Read More
How MSME Registration helps in Business Growth
| Date: Dec 23, 2020 | Category: MSME

How MSME Registration helps in Business Growth

MSME is a Micro, Small and Medium Enterprises which contributes huge into the growth of the economy. The MSMEs are the backbone of the economy as it is accountable for...

Read More

ARTICLES

Hi! My name is Akanksha! Let's talk.