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Must Know Facts about Shop and Establishment Registration

Why Was the Shop Act License Introduced?

To Impose Rules Based On Local Culture and Empower States: It enables states to frame regulations and rules regarding the labour workforce employed in such commercial establishments and make necessary exceptions.

To Convert Unorganised Sector Into Organised

The government intends to turn the unorganised sector into an organised industry by enacting rules and regulations.

Healthy Working Conditions

Regardless of the state of the business, shop act registration requires owners to maintain a healthy working environment and provide washrooms, baby care rooms, and other amenities.

To Regulate Wages Of The Employees

Previously, any shop or commercial establishment could set any salary/wage for its employees without regulating it. Daily wagers and labourers were paid significantly less, and business owners were held accountable. Shops and Establishment Certificate holders must now follow government wage regulations and provide the care that each employee deserves.

Stop Child Labour

One of the most important aspects of the Shop and Establishment Act is making child labour illegal and punishable. Before the opening shop act licence, which destroyed lives, child labour was common. This is now illegal due to government regulations and rules governing shop and establishment licences.

Mandates registration

Entrepreneurs must register their businesses under the Shop and Establishment Act, which is the most significant push towards organising and monitoring this sector. With more small shops and commercial establishments registered, the government can provide them with better assistance and resources.

Benefits of Shop and Establishment License

Encourage Expansion

A business owner who is 100% committed to adhering to the shop act registration compliances will be able to strengthen the entity’s market position by granting legal entity status, allowing the business owner to reach out to newer consumers.

Availing Government Benefits

The Shop Act Licence grants access to government programmes promoting small businesses. Businesses registered under the shop and establishment legislation are also eligible for low-interest bank loans, financial plans, and programmes.

Hassle-free Inspections

Establishment and Shop Licences grant access to government programmes promoting small businesses. Businesses registered under the Shop Act are eligible for low-interest bank loans, financial plans, and programmes.

Ease of Opening Business Bank Account

According to RBI regulations, every business must have a separate business account to manage its money. Only a certificate can open this business account under the Shops and Establishments Act.

Legal Right to Conduct Business

Obtaining a shop and establishment licence and providing proof of business, such as a partnership firm or sole proprietorship, grants the business owner the legal right to operate within the jurisdiction of the Act. They cannot be harassed and bothered by law enforcement.

Documents Required for Shop and Establishment Registration

We provide end-to-end online shop act registration fulfilment services that are hassle-free and 100% digital.

  • Shop or business address proof.
  • ID proof
  • PAN card
  • Payment challan
  • Additional business licenses necessary to start a business

Regulations Under The Shop Registration Act

As part of the Act, the following matters are regulated:

  • Work hours, annual leave, weekly holidays.
  • Compensation and wages.
  • Employing children is prohibited.
  • Women and young people cannot work night shifts.
  • Inspected and enforced.
  • Rest interval.
  • Hours of operation.
  • Employers’ record keeping.
  • Terms of dismissal.


Eligibility to Register Under Shop and Establishment Act 1947

Important Documents Required to Register Under Shop and Establishment Act 1947

  • Identity documentation for the company, associate, or owner, such as a voter ID card, PAN card, or Aadhaar card.
  • Address documentation for the store or business, such as a contract or property tax return.
  • A partnership deed or a filing document from the Registrar of Companies are examples of proof of formation.

Getting started is as easy as 1-2-3:

Simply fill out the form to get started.

Make a secure payment. No additional compliance in most cases

Our expert will connect with you & advise on documents.

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