Shop & Establishment License

Shop and Establishment License

Most of the businesses in India, including shops, restaurants, cafes, etc., are regulated under the provisions of the Shop and Establishment Act. A shop means any place or premises where goods are sold and services rendered to customers. It includes store-rooms, go-downs, warehouses or workplaces other than a factory, commercial establishment or other places used for public amusement and entertainment. The License is issued to the following establishments: -

♦ Business

♦ Trade

♦ Professions registered under the Shop and Establishment Act

Eligibility to Obtain a Shop and Establishment License

♦ Wholesalers or the retailer's shops and establishments

♦ Service Centers

♦ Warehouses, Storerooms, and go-downs

♦ Additionally, any other working places

♦ Hotels

♦ Eateries and restaurants

♦ Entertainment houses, Amusement parks, Theatres, etc.

Documents required for Shop and Establishment License

♦ Aadhar card/PAN card/ voter identification card/ driving license of the employer

♦ Passport size photograph of the employer

♦ The Affidavit, Cancelled cheque, and Bank statement

♦ A photo of the establishment/ shop along with the employer

♦ In the case of rented property, a copy of the rent agreement

♦ Any utility bill of the working premises

♦ In the case of a trust, a list of the number of trustees

♦ Certificate of incorporation, MOA, and AOA as per the Companies Act

♦ Partnership deed with all the important information such as the name of the partners along with their signature and share percentage of partners

Penalties for Shop and Establishment Act

It is compulsory for the entire establishment under the Act to obtain Shop and Establishment registration and comply with all the rules and regulations prescribed under the Act.

However, in case of any failure in getting registration and following the rules and regulations of the Act, the establishment would be liable to pay the penalty. The amount of penalty would vary from state to state.


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