Shop and Establishment certificate

 

Shop and establishment act is a nationwide act that is applicable in every state within India. This act was enacted to regulate the working conditions at work. Main objective of this act is to maintain a uniform benefits for employees working in different establishments. This act covers shops, commercial establishment, hotels and public amusement places. However, factories are not covered under this act.

Every shop and establishment will need to register themselves under this act within 30 days of commencement . Moreover, this registration helps in securing a current account from a bank. Additionally, there are other benefits including affordable financing from banks and NBFCs.

It is quite easier to apply for shops and establishment certificate. Applicant need to apply with ministry of labor at state level with relevant documentation and application. Application should be supported with valid documents including PAN card of applicant, Aadhar card, address proof like sale deed etc. Application would be reviewed by a local inspector within department and post successful review of application, firm would be awarded a shop and labor certificate.

It usually take 15-20 days to get final certificate from the date of application. It is advisable to register for this license as early as possible. It helps in getting various government facilities like working capital financing, term loans, short term loans, OD limit etc at competitive rates from a financial institution. It acts as a valid business ownership proof in most of the states in India.

There are many questions that come to the mind of an applicant of shop and establishment act. Some of them are –

• When was Shop and Establishment act formed?

• Why Shop and Establishment act is required?

• What is shop and establishment act?

• Who can register under shop and establishment act?

• How to register for shop and establishment act?

• Shop and establishment act in Delhi requirements?

• What is shop and establishment act for Maharshtra?

We have tried to answer maximum questions above. You can read articles in this series which covers all aspect of the act. To start with, you can visit Shop and establishment certifications FAQs or Shop and Establishment in India FAQs.