Shop and establishment act in India FAQs – Part 2

by varun · Published November 4, 2020 · Updated December 24, 2021

The Shop and establishment act comes under purview of department of labor and employment in India. It supervises any shop, trade or business that is carried out. This act governs and keeps a close eye on commercial establishments and also the working of the societies, printing firms, educational institutions and other premises which undertake banking, insurance, and stock or share brokerage.

Under this act, every eligible establishment is provided a shop and establishment certificate. In this 2nd article on our series, we would deal with various FAQs related to Shop and establishment act. In previous article, we have already discussed FAQs related to application for Shop and establishment certificate.

shop registration certificate delhi

Q – What are the steps to get a shop and establishment certificate?

A – Major steps involved in getting this certificate are as follows-

Application for shop and labour certificate is needed to be submitted within 30 days of commencement of business.
Application can be made offline as well online. For offline mode, you need to visit labor department of state or it can be done online by making an application on website of labor department of concerned state. For example to make application for shop and labot certificate in delhi, you can visit this website.
Submit the application to chief labor inspector of state online or offline. Relevant documents also needed to submit along with application for verification.

Q – Which documents need to be submitted along with application for shop and labor certificate?

A – Following documents need to be submitted along with application –

Photograph of the shop/ establishment’s entrance with the Name Board in local language.
In case of a limited company or LLP, following documents need to be submitted for firm – Certificate of Incorporation, Memorandum of Association (MOA) and Articles of Association (AOA)/ LLP (Limited Liability Partnership) agreement.
Copy of the PAN card of the firm.
Proof of identity of owner like Voter ID, Aadhar card, Driving license. Document of partners and directors would be required in case of partnership firm and limited company/LLP.
Address proof shop/establishment like utility bills, sale deed, lease deed along with NOC of owner in case, premise is rented.
Copy of partners’ consent or Board resolution
List of partners/ directors along with their Identity and Address proof
Details of existing workers like duration, wage rate etc.

Q – What are the major details that are to be filled in application form?

A – Application form for shop and establishment certificate would contain details like-

Name of the establishment
Address of establishment
Full name of the employer
Category of establishment
Nature of business
Name of the manager
Date of commencement
Employee details

For detailed discussion on fields to be filled for application you can read our article on Shop and establishment certificate application FAQs

Q – What are the key points to be kept in mind while applying for shop and labor certificate?

A – You need to keep following points in mind –

The certificate should be displayed at a prominent place within shop.
It should be renewed well before expiration date.
Any change or updating should be notified to chief labor inspector
Any person who indulges in behavior prohibited by this act would be liable to punishment under law.

Q – What records to be maintained by a shop owner after registering?

A – Following record should be maintained –

Working hours.
Rest period
Leave taken
Leave with wages
Fines
Salary

In this article, we have discussed important FAQs related to shop and establishment act. You can read articles on FAQs on IEC code and FAQs on Udyog Aadhar on respective links. You can also follow out GST registration FAQs series on this link.