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Introduction to Shops and Establishments:
The Shops and Establishments Act is enacted by several state governments to regulate the conditions of workers/employees. Any shop, office, establishments, theater, hotel restaurant etc., need to register for a Shops and Establishments license. The Shops and Establishments Act is to regulate the work conditions, rights of employees, working hours, holiday list, the minimum age for employment and list of the obligations of the employer.
Shops and Establishments registration is required for all entities who are into any business. This must be applied within 30 days of commencement of the business. It covers shops, commercial establishments, restaurants, hotels, theaters, amusement parks, and retail trade/businesses. Shops and Establishment certificates should be displayed at the entrance of the shop/establishment.
n most states, shops and establishments registration is an online process. In Karnataka, an online application has to be submitted in the prescribed format and all the documents required as per the type of entity the registration is sought for should be submitted in person at the department.
Document | Proprietorship | Partnership | OPC | LLP | Pvt Ltd |
PAN card of promoter/s | ✓ | ✓ | ✓ | ✓ | ✓ |
PAN card of the company/firm | – | ✓ | ✓ | ✓ | ✓ |
ID and Address proof of the promoter/s | ✓ | ✓ | ✓ | ✓ | ✓ |
Photograph of promoter/s | ✓ | ✓ | ✓ | ✓ | ✓ |
Registered office documents such as Rental agreement/Sale deed/Latest tax paid receipt | ✓ | ✓ | ✓ | ✓ | ✓ |
Utility bill | ✓ | ✓ | ✓ | ✓ | ✓ |
Current account Bank statement/Cancelled cheque | – | ✓ | ✓ | ✓ | ✓ |
Savings account Bank statement/Cancelled cheque | ✓ | – | – | – | – |
If everything is in order, it may take anywhere between 8 to 10 business days for registering Shops and Establishments. This timeline is further subject to Government processing, approval time, public holidays, etc.
The fees vary from state to state. For e.g, in Karnataka, Government fees depend on the number of employees.
No. of Employees | Fees (Rs.) |
No Employees | 300/- |
1 to 9 Employees | 600/- |
10 to 19 Employees | 4000/- |
20 to 49 Employees | 10000/- |
50 to 99 Employees | 20000/- |
100 to 250 Employees | 40000/- |
251 to 500 Employees | 50000/- |
501 to 1000 Employees | 70000/- |
Above 1000 Employees | 75000/- |
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