Shop & Establishment License

Overview of the Shop and Establishment License Registration procedure in India:

A Shop and Establishment License in India is mandatory when opening a shop, theatre, hotel, restaurant or any commercial place that will generate income. The Department of Labor in India decides the rules and regulations of this act.

A maximum of the business operations in India, such as shops, restaurants, cafes, and so on, are regulated by the policies of the Shop act license. However, there can be some differences between the rules and regulations depending on the state where the business is situated. This act aims to provide a suitable working environment and conditions to the workers and look after their justified wages, rights and holidays. Both unorganized and organized business sectors are covered and managed under this act to provide suitable working conditions and justice to the workers.

Advantages of registering a Shop and Establishment License:

Registering for a Shop and Establishment License in India has many benefits. Let’s look at them:-

• This license simplifies the process of further legal registrations for establishments.
• The licence allows the opening of a bank account in the name of a shop and business
• Legal recognition is granted to the business or shop through this license
• Assists the business in raising investments, loans or venture capitals

What are the documents required when registering your Shop and Establishment License?

The documents that are required for the registration of Shop and Establishment License are as follows:

• Any government-approved Id proof of the applicant like Aadhar or Voter Id
• Applicant’s Passport size photographs
• A photo of the shop with the owner for property ownership recognition
• A copy of the rental agreement in the case of a rented property,
• Any utility bill like electricity bill, water bill etc. of the establishment as address proof

In the case of different kinds of businesses, these documents can also be demanded:-

• If it is a trust, a list of the trustees with their names
• ROC
• Memorandum of Association (MoA) of the establishment
• Certificate of incorporation under the Companies Act
• list of designated directors and their nominations
• Permission copy from RTO Transportation
• In the case of a co-operative society, a complete list of the members and chairman are required
• Address Proof of the applicant
• Partnership deed in the case of a partnership business structure
• RBI permission copy
• NOC from the locality’s police department is starting a Cybercafe
• IEC certificate
• A certificate granted by SEBI if establishing a share broker firm
• Food and drug license
• FSSAI license
• An excise license is opening a restaurant, beer bar or wine shop
• The license granted by the police department if providing security services
• The municipal corporation issues NOC if it is a mill for flour and masala

Step by Step guide to the Registration Process:

There are some steps in the process for registration of a Shop and Establishment License. Eazy Startups can assist you in completing the process in a simpler manner. These are the steps:-

• Download the application from the official website according to the state where your shop will commence its business.
• Fill in all the required details such as:-

1. Name of the Business
2. Name and Details of the applicant
3. Details of the employees
4. Registered business address with NOC or rent agreement if the premises is rented
5. PAN details of the applicant

• Once the details are filled, submit the application to the chief inspector who is in charge of the shop establishment license with the amount of the specified fees
• After submission, the details of the application and the documents are verified by the concerned authorities.
• If all the details of the application and the documents are submitted and pass the verification according to the act’s requirements, the Shop and Establishment License certificate shall be issued to the business or shop.

Frequently Asked Questions