Registration under Shop and establishment - All about Shop and Establishment Act

INTRODUCTION
Shop and Establishment licenseare one of the most important licenses which every defined business must procure. Shop and establishment license is covered under state laws and hence, therefore, very few people know about it.

Shop and establishment license is covered under state laws of India. Every state has its different set of laws for Shop and establishment, and they are to be followed properly.

Hence, we thought of explaining the importance of this law, so that no entrepreneur should fall under legal traps.

WHO ALL ARE REQUIRED TO REGISTER?
The occupier of every establishment which includes the shop, commercial establishment, residential hotel, restaurant, eating house, theatre or other places of public amusement or entertainment, is required to register under Shop and Establishment Act.

In a layman language, almost every shop or business or profession is required to register under shop and establishment act.

HOW TO REGISTER? REGISTRATION PROCEDURE FOR SHOP AND ESTABLISHMENT ACT

Any eligible business can apply for registration under shop and establishment act. Some states have 100% online process, or some states are still following the manual procedure. And hence, there will be chances of corruption.

The following is the registration process for shop and establishment license:

#Step 1 – Check Applicability: Once you have started your business, then the first thing you must do is to check for necessary licenses. In case you have any doubt, you can post your queries HERE.

#Step 2 – Procure Documents: Once you have eligible to cover, then collect all the necessary documents (list of documents required mentioned below) and scan the same.

#Step 3 – Application filling: Shop and establishment act is a state act and hence, the process for each state is different. Hence, it will not be efficient to describe the each state process hereon.

However, as per standard terms an applicant along with the prescribed documents, should be filed with the sub-registrar who will issue you the certificate after due verification.

WHY IT IS MANDATORY TO REGISTER?

Practically, proprietor or individuals register under Shop and Establishment to open the current account with the bank. Bank do not open the current account without at least two documentary proofs like service tax registration, VAT registration, Import export code, etc.

However, apart from opening a bank account, it is mandatory to have this license otherwise inspector inspecting the business premises may cause unnecessary problems for the business man.

DOCUMENTS REQUIRED AND COST OF REGISTRATION
Since, shop and establishment is a state matter and hence, documents requirements and fees required differ from state to state. However, there are following set of documents which are almost necessary for every state:

• Proof of establishment (Sale deed, rent agreement, NOC)
• Photograph of establishment (Any photo of office, shop, building, etc.)
• PAN card copy
• Partnership deed or Certificate of incorporation (if applicable)
• ID proof of authorised person

These are a minimum set of documents required before registration. The government cost differs from state to state and may range between Rs.500 to Rs.1,000/-.

INFORMATION REQUIRED BEFORE REGISTRATION
To register any business, the following information is mandatory:

• The name of the employer and the manager, if any;
• The postal address of the establishment
• The name, if any of the establishment
• The category of the establishment of the restaurant, amusement park, hotel, etc.
• The number of employees

Apart from above information, the inspector may further ask for information, and the same shall be supplied by the applicant.

FEATURES/BENEFITS OF THE SHOP AND ESTABLISHMENT LICENSE

Here are some of the important features of Shop and Establishment License:

#1 – Establish current account: The shop and establishment license along with a certificate from Chartered Accountant can help an individual to open the current account with the bank.

#2 – Smooth inspector visits: If any inspector from the state government or local municipality visits the premises of your office, then you can easily flow from his trap as you are already registered.

#3 – No Compliance: Shop and establishment do not require any compliance after registration. So, there will be only one-time cost.

#4 – Registrations: Registration under shop and establishment is online, and the whole process can be completed within two days.

CONCLUSION

As said above, shop and establishment is a state matter and hence, it is very difficult to resolve or cover each issue in one article. Hence, in case you have any problem or doubt or feedback, then you can ask your queries directly through the contact form.

Register for Shop and Establishment license anywhere in India.

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