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
- Aadhar card of the employer (in case of legal statute such as company, etc copy of Aadhar card of responsible person under the respective act).
- Actual photo of the establishment displaying the interior and the Name Board (Marathi) at the appropriate place of the establishment.
- Partnership deed/LLP Registration Certificate in case Partnership/LLP.
- Certificate of registration of Company (Certificate of Incorporation) along with list of directors on company letter head with address and contact details of directors and Nomination of Directors (Resolution) (in case of Pvt. Ltd or Ltd firm).
- Applicant's photo.
- Applicant's signature.
- Address Proof
- Current Electricity Bill.
- PAN Card ((Proprietor PAN in case Proprietorship Company/Company PAN in case Partnership/LLP/Pvt. Ltd./Ltd.).
- Self-Declaration.
- Building UID No. (in case Premises located in Mumbai)
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:
- Advertising for the document required
- Preparation of documents as per application & list of documents.
- Application File
- Inspection by the department if required
- Liaison department
- License issued
- Yearly compliance if applicable
- Renewal when due
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.
