The Shop & Establishment Certificate is a state based license which is required during the establishment of any commercial place like a hotel or a shop.
Every new establishment must be registered under the Shop & Establishment Act and get the license within 30 days from the commencement of the work whether or not it has emploEyees. The validity of the certificate is for one year and can be renewed every year.
The Act regulates work conditions, rights of employees in the unorganized sector and a list of obligations are provided for every employer. It applies to all the commercial establishments, shops, restaurants, theatres and other places of public amusement or entertainments.
Registration is required even by sole proprietors working out of their homes. If one is trying to raise investment or trying to get a loan for the business the establishments needs to be registered.
Even if one is managing and operating an office from home, the concerned person can apply for this registration.
REGULATIONS UNDER THE SHOP AND ESTABLISHMENT ACT
The Shop and Establishments Act sets certain rules and regulations for working hours per day and week, rest intervals, opening and closing office hours, closed days, religious national holidays, overtime work, rules for employment of children, rules for annual leave, maternity leave, sickness and casual leave, rules for employment and termination of service, maintenance of registers and records and display of notices and obligations for employers as well as employees.
SHOP ESTABLISHMENT CERTIFICATE BENEFITS
- Easy to obtain the certificate.
- Less Compliance.
- Audit is not mandatory.
DOCUMENTS REQUIRED FOR REGISTRATION
- Address Proof.
- Passport Sized Photographs.
- Copy of PAN Card.
- The Partnership Deed or COI.
- Authorization letter/the self-attested letter.
- Challan/Payment Receipt/Transaction Receipt.
PROCEDURE
- PAN cards, identity and address proofs of the proprietor/partners/directors needs to be submitted. Details of employees must also to be submitted.
- File the application with the issuing authority i.e. the local Municipal Corporation.
- The procedure for obtaining the registration will be completed as soon as the additional documents if any are submitted as instructed by the inspecting officer.
- The hard copy of the certificate is issued within 10 days in major cities but would take around 15 to 20 days elsewhere.