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Shop and establishment act regulates most of the businesses in India. It regulates the work environment of the business to ensure the rights of the labors are protected.
The establishment included are as per the notification provided by state government in their official gazette like commercial establishment, restaurant, theater etc. this act varies from state to state as each state has their rule regarding the labors or how they want the working condition of businesses established their so, it is mandatory for the shops or establishment of office or any business place to get registered under this act.
It provides the legal recognition to the shop and establishment
This license increases the credibility that a standard norm is followed as per govt.
This license helps in getting the benefit provide by the government scheme
It works as the proof of business
• Id proof (Aadhar card/PAN card/ voter id card) of employer
• Passport size photo of employer
• The Affidavit, Cancelled cheque, and Bank statement,
• photos of the establishment or shop with the employer
• Address proof of place of business
1. If rented - a copy of the rent agreement
2. If owned- sale deed of the property
• Utility bill of the place of work.
Additional Documents Required according to the Establishment or type of business-
• For a trust, total number of trustees
• Certificate of incorporation, MOA, and AOA of the company
• For co-operative societies, list of all the members and chairman
• Partnership deed for any partnership firm
All retail businesses, including shops and stores, are required to obtain a shop license and registration.
Penalties for operating a shop without a license and registration can include fines and/or closure of the business. It is important to ensure that your shop license and registration are up to date to avoid any legal issues.
Yes, non-compliance with shop license and registration regulations can result in penalties such as fines, legal action, or loss of license. It is important to ensure that your business is fully compliant with all relevant regulations to avoid penalties.
In India, online shops are also governed by the Shops and Establishment Act of the respective state and also needs to comply with the E-commerce rules of the Government of India. Additionally, compliance with other regulations such as GST registration and data protection laws may also be required.