SHOP ACT LICENSE

What is Shop Act License?

Shop Act License is a type of Legal permission which legally allows us to do business in a particular place. If you have a physical shop or an office where the business is done, this license is a must. It gives you proof of a particular business being done at that place.

The Shop and Establishment Act in India is promulgated by the state and it slightly varies from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.

For example, Shop and Establishment Act is called Gumasta in the regional language in Maharashtra. All the shops have to be registered under this act

The objectives of the Shop Act are:
  • Provide statutory obligation and rights to employees and employers in the unorganized sector of employment, i.e., shops and establishments.
  • Regulate the conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theaters, and other places of public entertainment.

Why this License is Required?

When an entity employs people who may be casual workers, full-time employees, contract-based, etc, to regulate the work conditions and ensure the workers’ rights are protected, it is mandatory to get registered under the Shops and Establishments Act, informally called Shop Licence.

Who can get a Shop Act License?

Shops

Commercial Establishments

Restaurants

Theatres

Health Clinic

Document Required for Shop Act License

Role of Shamkris and Process of Shop Act License

Shamkris adopts a results-oriented approach to compliance with mandatory licence requirements in the organization. A simple and guidance methodology help organisation to achieve licence in a timely manner and cost-effective. Shamkris support 100% in advisory, Guidance, Compliance with respect to license requirements to obtain approval.

The License process described below:

Advisory for the document required

Preparation of documents as per application & list of documents.

Application File

Inspection by the department if required

Liason department

License issued

Yearly Compliance if Applicable

Renewal when due

Who can issue the Shop Act License?

FAQ

Hence, every state in India has enacted the Shops and Establishments Act. This Act is executed in order to: regulate the conditions of work, provide for statutory obligations of the employers and. administer the rights of employees in the unorganized sector and other establishments in their jurisdiction.

Shop Act is a mandatory requirement if the business premises are located within municipal limits. It is applicable even if you are doing your business for your home or residential premises. … It is compulsory to display the Shop Act Intimation/Registration certificate in a prominent place in the business premises.