What is Shop & Establishment Act (Shop License or Labor License)

The Shop and Establishment Act is managed by the Department of Labor which is applicable nationwide and any kind of exchange, business, or calling come under the purview of this Act. The demonstration manages the working of business foundations as well as social orders, beneficent trusts, printing foundations, instructive establishments run for increase and premises in which banking, protection, and stock offer financier.

This act controls over employer for the protection of employees, for example, working hours, rest interim for representatives, opening and shutting hours, and shut days, national and strict occasions, extra time work, rules for working of children, yearly leave, maternity leave, infection and easygoing leave, and so forth.



In this article we will cover the following :

1. Which establishment are included in the Shop and Establishment Act?
2. Features of the Shop and Establishment Act:
3. What is Shop and establishment act license?
4. Eligibility criteria for the Shop and Establishment Act
5. Documents needed for Shop and Establishment Act:
6. How to obtain a license of the Shop and Establishment Act?
7. What are the Changes and amendments that can be made in the Shop and Establishment Act license :
8. What are the records that are to be maintained under Shop and Establishment Act ?


1. Which establishment are included in the Shop and Establishment Act?


The Shop and Establishment Act in India is declared by the state and may somewhat vary from state to state. According to the Act, all shops and business foundations working inside each state are secured by the particular state Shop and Establishments Act. Shops are characterized as premises where products are sold either by retail or discount or where administration is rendered to clients and incorporates an office, a store-room, godown, and distribution centre, or workhouse or work environment.

Establishment covered are shop, a business foundation, private inn, café, eating-house, theatre,etc. Further, establishment as notified by the Government by notice in the Official Gazette. Be that as it may, factories registered under factories act, 1948 are not secured by the shops act and are directed by the Factories Act, 1948.

2. Features of the Shop and Establishment Act:


The following for the employees would be protected through Shop & establishment act


· Working hours

· Break and rest time

· Prohibition of child labor

· Opening and shutting hours

· Close days

· Holidays during a month

· Wages for leaves and paid leaves

· Time and states of installment of wages

· Reasoning from compensation

· Holiday policies

· Hygiene

· Lighting and ventilation

· Precautionary measures against fire

· Mishaps and accidents

· Maintenance of Records of above points

3. What is Shop and establishment act license?


Any shop or business foundation that starts activity must apply to the Chief Inspector for a Shop and Establishment Act License or shop licence or labor license within specified time depending upon state to state (Generally within 30 days from the date of the starting of the establishment ). The application for a permit in the recommended structure must contain the name of the business, address of the foundation, name of the foundation, class of the foundation, number of representatives, and other significant subtleties as mentioned.

On accommodation of the application and survey by the Chief Inspector, the shop or business foundation will be enrolled and an enlistment authentication will be given to the occupier. The enlistment authentication must be unmistakably shown at the shop or business foundation and re-established intermittently, according to the demonstration.

On the off chance that the shop or foundation might want to shut down the business, the occupier ought to tell the Chief Inspector recorded as a hard copy inside fifteen days of the end. The Chief Inspector subsequent to looking into the solicitation for the conclusion can evacuate the shop or business foundation from the register and drop the enlistment authentication.

4. Eligibility criteria for the Shop and Establishment Act:


1. Any business area, for example, banking, exchanging or protection foundations.

2. Any foundation where people are utilized or drawn in to accomplish office work or offer support.

3. The inns, restaurants, and motel or a littler bistro or refreshment house.

4. Delight and diversion places, for example, theatres and film lobbies or event congregations.

5. Documents needed for Shop and Establishment Act:


Documents for the shop & establishment licence would vary from state to state however generally the following documents towards higher end would be required for the registration


1. Aadhar card (of the owner or partners in case of partnership firm or director in case of the company)

2. PAN Card (of the owner or partners in case of partnership firm or director in case of the company)

3. The bank account of the business

4. Address proof such as electricity bill or a NOC from an owner (in case you live in a rented apartment of the owner or partners in case of partnership firm)

5. Application letter in the prescribed format to the Municipal Corporation you live in (of the owner or partners in case of partnership firm)

6. Authority Letter for Business

7. Form-A which is an application for Registration within 30 days of starting any work to the inspector of the area

8. Government Prescribed Fees

9. Partnership Deed (to be followed only if you are in a partnership firm) or MOA/AOA/COI in case of Corporate

10. Pan Card of the Partnership firm / corporate (to be followed only if you are in a partnership firm/corporate)

11. Partner’s ID Proof and address proof (to be followed only if you are in a partnership firm).

6. How to obtain a license of the Shop and Establishment Act?


Since we have discussed that shop and establishment licence is vary state to state. Let us understand the process through the example of the Delhi registration.


1. Firstly you will need all the required documents and a working device with internet connectivity.

2. Login to the site http://www.labourcis.nic.in/

3. Out of all the options given their click on the online registration

4. When you click on online registration you will be redirected to a page as follows

5. Fill in the required details correctly and then click on continue and you will be redirected to the next page which is the 2nd part of the form, where you have to fill the registering details of your employees.



6. After filling all the required details you will instantly get your license online.

7. What are the Changes and amendments that can be made in the Shop and Establishment Act license :


Any revision to the Shop and Establishment Act enlistment must be intimate to the concerned official inside the endorsed time. In the event of the conclusion of the foundation, the business is required to intimate the individual official and apply for giving up of the enlistment. The official on being fulfilled about the rightness of the application, will give a request dropping the current enlistment and issue a new Registration Certificate.


8. What are the records that are to be maintained under Shop and Establishment Act ?


Under the Shop and Establishment Act, each business needs to look for endorsement from the Department of Labor and stay up with the latest registers in regards to subtleties of work, fines, derivations, and advances, pay, and occasions. The necessities may change from state to state. Records identified with yearly occasions and the number of representatives should be submitted to the workplace of the Municipal Corporation every year further no Regular return is should be documented under this Act.


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