Shop Act Registration0 ( 0 reviews )
Register your shop under the shop act to conduct fair business
The Shop Act is an Act that lays down that every shop owner or owner of a commercial establishment should ensure that he or she has a Shop and Establishment License within 30 days from opening that establishment. This license is obtained from the Chief Inspector of that area. If you have not yet got your Shop Act License, now is the time to do so.
It isn’t difficult to get a Shop and Establishment Act License. All you have to do is fill up an application form, mentioning the name of the employer, establishment, address and category of the establishment along with the number of employees and other desired information.
Even if you are working from home, you would need to get this license for your business. From restaurants to hotels, theatres, retail businesses, etc. every place needs to register itself within 30 days. If you are starting a business in Delhi, you can register your establishment at http://www.labour.delhigovt.nic.in/ser/.
What is the purpose of the Shop and Establishment License?
Workers in the unorganised sector don’t have any other governing body to ensure that their rights and working conditions are as they should be. This is the reason for implementing the Shop Act License. Although the rules of the Shop/Trade License vary from one state to the other, it brings about a certain amount of consistency within a given area – in terms of leaves given, work hours, payments, etc.
The Shop and Establishment Act regulates the functioning of businesses wherein any trade is carried out. Not only does this apply to commercial establishments but also to charitable trusts, profit-run educational institutions and other premises having a brokerage, stock or insurance activities carried out. Some of the areas that fall under the regulations of the Shop and Establishments Act are the rest interval for workers, opening and closing hours, maternity leave, sick and causal leave along with rules regarding overtime work, national and religious holidays, and so on.
Who all come under the Shop and Establishment Act?
A shop is considered to be any premise where retail or wholesale goods are sold or services are provided to people. Under this banner, the following establishments fall under the Shop and Establishments Act
- Restaurants or eating places
- Residential hotels
- Theatre and other places of public entertainment
What are the documents needed for this process?
Every state has its own process, so you should visit the Labour Department to know more. However, some of the documents that you would need to complete the registration process are mentioned below.
- Details of the Manager of the establishment
- Details of employees
- Address proof and PAN card of the proprietor
- Proof of Establishment.
To provide proof of establishment, the owner can provide any document from your lease deed to electricity or telephone bills. They may also ask for the rent agreement at times.
How does the process of applying for a Shop and Establishment License work?
Once you fill in the application form, submit it along with the required documents. You will have to collect a stamped challan on payment of the prescribed fees. Submit the challan along with the application form to the Chief Inspector of the respective area. The form will then be reviewed by the Chief Inspector and once this is done, the shop or establishment will be certified and will receive a registration certificate. This usually takes about a week to be done. The Indian government necessitates that hereafter the registration certificate be displayed in the establishment or shop at all times in a prominent place and on expiry, should be duly renewed.
Of course, the issuing of the license will be subject to compliance of all mandatory provisions of the Act. The inspector may visit the establishment at any point of time to ensure that all the provisions have been met. If this is not the case, a fine is usually levied on the establishment.
However, if a person is looking to shut down the establishment due to lack of business, the owner has to send a letter to the Chief Inspector within a period of 15 days of the closing, mentioning the issues being faced and the subsequent decision to close down the business. On reviewing the owner’s letter, the Chief Inspector will cancel the registration certificate, removing the shop or establishment from the official register.
What is the fee structure for the Shop Act License Registration?
According to the Shop Act website (http://shopact.in/shop-act-fees/) whether you are looking to register your shop/ establishment or are looking to renew its license, the fees needed to be paid will vary based on the number of employees you have.
Establishments having more than 100 employees have to pay a registration and renewal fee of about Rs. 6000 and a late fee of about 3000. In many cases, however, the fee structure is based on the type of establishment you are running and not the number of employees hired. For instance, according to the Madhya Pradesh government website the cost of registering and renewing the Shop License is quite different from the above-mentioned structure.
So if you are deciding to start a shop or an establishment that would fall under the Shop Act, you should go ahead and check the requirements to register yourself for a Shop and Establishments License right away.
Get a labour license now to avoid penalties
If you are a contractor who is making use of 20 labourers or more to do a particular job, then you would need a labour license. Even if more than 20 workers are being employed on a project site, you would need to get in touch with the Licensing Officer of that Area and obtain a contract labour license according to the Contract Labour Act, 1970.
Understanding the Contract Labour Act
Brought into force by the Indian Legislature in 1970, the Contract Labour Act basically seeks to ensure that the working conditions of contract labour is regulated. This Act would apply to any establishment wherein 20 or more people are employed as contract labour. Similarly, it would also hold for any individual contractor who employs 20 or more people.
However, there are certain cases where this Act does not apply. This includes establishments located in the SEZ and establishments where work performed is of a seasonal nature, not exceeding 60 days in a year. Similarly, it does not apply to an establishment where work is not provided for more than 120 days annually.
What is the process of registering establishments having contract labour?
If your establishment makes use of contract labour, then you should go ahead and get your establishment registered with the government. You need to fill out an application for registration and come with a receipt for the required fees that need to be paid. If everything is duly submitted, the Registering Officer can register the establishment and provide a copy of the registered certificate instantly.
The contractor should always ensure that the certificate given has the name of the establishment along with its address, the type of business along with the maximum number of people to be taken as contract labour by the establishment. These are some of the essential points that have to be in the document along with other particulars.
How do you get a New License for Contract Labour?
According to the Maharashtra Department of Labour (https://mahakamgar.maharashtra.gov.in/lc-license-contract-labour.htm) the process for getting a labour license is quite simple. You can go to this website https://lms.mahaonline.gov.in/ and choose whether you want to register as an individual or a corporation. You will then be provided an OTP to continue with the process. Fill in your email ID and other details to register yourself. Make sure you do not miss any mandatory fields as the process will remain undone.
Once this is done, you will receive an email to your registered email ID. You will be required to open the mail and do as the instructions say. With this, your registration will be completed. Moving forward, your email ID will be your User ID to log in to the website and the password can be generated by you.
You now have everything needed to log in and complete the procedure so log in to the website once again and fill in your User ID and password to get through to the services. Choose the option of contract labour license and click on new license. You will be provided with another form which you will have to fill and submit. You will then receive an application ID before the screen closes.
Next, you will have to open the application ID to check the status of the application. Read the instructions that are given on the right side of the screen. If the status says ‘Upload Documents’ then you may move on to upload the required documents as shown on the right side of the instructions. Once you browse the required files, you can upload the document at the bottom. Check the status again. If all has been done correctly, the next instruction will be to make the payment. Once again, the option to pay the fees will appear on the right side of the screen. Click on this and make the required payment. Check the status once again after doing this, if you receive the sign saying ‘under scrutiny’ it means the application will now have to be scrutinised before further steps can be taken.
This may take a while so you can come back the next day to check the status and see whether it is ‘approved’ or ‘rejected.’ Naturally, the former option is the one you are looking for. If rejected, you can go back to your mail and check the instructions given in the mail. It will instruct you to reapply once again on the website and you can again go through the process by following the instructions that come on the right side.
If any changes need to be made in the application, you can make them now. If the process failed due to rejection of certain documents, you can delete the rejected documents and attach the proper ones. If there is an instruction asking for payment of partial fee, you can make the payment online, just as before. After complying with the mentioned instructions and correcting any errors that may have occurred the first time, you should once again get the sign ‘Under Scrutiny.’
Once the status shows ‘Completed’ you can click on the download certificate button at the right side of the screen and the license will either download automatically or you will receive the license over email.
Documents needed for Contract Labour License
Whether you are looking to get a new license for your contract labour or renew the existing license, you will have to get your hands on certain documents before moving in for the application process. These are mentioned below.
- Self-Declaration Annexure A
- Self-Declaration for Attestation Annexure B
- Photograph with size between 20Kb to 30 Kb
- Signature having size between 9Kb to 15 Kb
- Form V – which is a certificate for the principal employer
- Form IV-A Undertaking
- Any proof if identity
In case of Old Users whose licenses need to be renewed, in addition to the above, you would have to submit:
- 1. Copy of the License
- 2. Copy of fee receipt which was paid earlier
- 3. Copy of security deposit receipt paid earlier
All of these documents will have to be scanned and submitted along with the application for a labour license or renewal of one.
So if you are using contract labour and haven’t yet got your labour license yet, make sure you do so instantly because any establishment found not having enrolled themselves within the specified time will be liable to punishment as per section 36.