Shops and Establishment Registration

Shops and Establishment Registration

The Shops and Establishment Act is a state-specific law which may differ from state to state. The object is to govern and improve the working conditions and rights of the workers, like wage payments, leaves, holidays & work hours, etc.

 What is a Shop?

Shop means any premises:

  • Where goods are sold, either by retail, wholesale, or
  • Where services are rendered to customers.
  • It includes an office a store-room, go-down, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business.

A shop does not include a factory, a commercial establishment, residential hotel, restaurant, eating house, theater or other place of public amusement or entertainment;

 Registration of Shops & Establishments:

As a business owner of a shop or establishment, you are compulsorily required to get the same registered under the Shops and Establishment Act. Here are the specific rules:

Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:

  • Your name as the employer and the name of a manager, if any;
  • The postal address of your establishment;
  • The name of your establishment;
  • Such other particulars as may be prescribed.
  • Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate will be valid for 5 years and has to be renewed thereafter.

Point to be kept in mind:

  • If any change is required in the Registration Certificate issued to you, then the Occupier/Employer is required to notify the Chief Inspector.
  • The Registration Certificate has to be obtained within 90 days from the date on which the establishment commences its work.
  • Owners of placement agencies supplying domestic servants have should also be registered under the Act.
  • Failure to get the establishment registered under the Delhi Shops and Establishment Act is a punishable offence.

Applicability

Applies to all commercial establishment which includes shops, offices, schools, hospitals, societies, charitable trusts, educational institutions which operate for the motive to earn profits. However, factories are not covered by the shops & establishments Act and are regulated by the Factories Act, 1948.

Meaning of Shop

Premises where any trade or business is carried on or where services are rendered to customers. It includes offices or warehouses, whether in the same premises or not, used in connection with such trade or business, but does not include a shop or office attached to a factory within the scope of the Factories.

Commercial Establishment

 A Commercial Establishment shall mean a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house etc a cafe or any other refreshment house, etc

 

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