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The Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places come under the purview of the Act.
The definition of a ‘Commercial Establishment’, as given in the Act is:
1. Any commercial sector, such as banking, trading or insurance establishments
2. Any establishment where individuals are employed or engaged to do office work or provide service
3. The hotels, eateries and boarding houses or a smaller café or refreshment house
4. Amusement and entertainment places such as theatres and cinema halls or amusement parks
All such above mentioned commercial establishments come under the Act, and need to adhere to the norms and regulations set by the Act for treatment of their employees.
The exceptions to the Act varies in the States and each State has given a list of shops and establishments that come into the Act, and who require the registrations under the Act to run their business in the State
Shops and Establishment Act – How to apply for registration?
While each State has set different rules and regulations for registration under the Act, the basic procedure remains the same. The Act requires every business to get approval from the department of Labour.
The registration certificate can be obtained from the Chief inspector of Shops and Establishment Act, or from other inspectors delegated to the area where you run the establishment.
An application, in the prescribed format, (obtained from the official websites of different States) needs to be submitted to the inspector in charge, with:
1. The name of the establishment
2. Name and details of the owner (employer) and the employees (at the time of incorporation of business)
3. The address of the establishment and a copy of sale deed or rental agreement for the shop
4. PAN card of the business or the owner
Features or Benefits of the Shop & Establishment Registration
1. Legal Entity Proof – Each shop or business required a legal entity proof like proprietorship firm or partnership firm etc. a legal entity proof which gives the right for doing the business in your area or state for the same.
2. Business Bank Account –Every banks is required a legal entity proof to open a current bank account. Each shop & Establishment has to open a separate bank account for the daily transactions as per the RBI Compliance. So on the basis of the shop certificate you can easily open a current business bank account.
3. Smooth inspections –State government and local municipality conduct regular inspection visits for checking the proper working of shops and establishments along with license as well. If you have the Shop Act license, then you can quickly get over the inspections every time.
4. Government Benefits – Each state have a DIC Department which creates the policy in the respective state for the all small business. On the basis of Shop License Registration Certificate you can easily avail the government benefits.
Records to be Maintained under Shop & Establishment Registration
Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually further no Regular return is needs to be filed under this Act.