Shop and Establishment Act Registration (Shop License)

Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.

Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.

Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.

The shop & establishment act is applicable to every office and shop where commercial activities are carried on even on employing one employee.
Your Office /Corporate office will be covered under the Shop & Establishment Act. and the provision of leave and other rules shall be applicable, even when your company is registered under companies Act.

The service is state specific in case you need a shop license and will be rendered only in specific cities being Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune and Delhi.

These are the government fees applicable for registration under Shop and Establishment Act. These depend on the state and the number of employees.

Andhra Pradesh

• 0 Employees: Rs. 30;


• 1 to 5 employees: Rs. 100;


• 6 to 10 employees: Rs. 200;


• 11 to 20 employees: Rs. 1000

Delhi

• 0 Employees: Rs. 5;


• 1 to 10 employees: Rs. 15;


• 10 to 25employees: Rs. 30;


• 25 and above employees: Rs. 50

Madhya Pradesh

• 0 Employees: Rs.100


• 1 to 3 employees: Rs.150;


• 3 to 10 employees: Rs. 200;


• More than 10 employees: Rs. 250

Maharashtra

• 0 employees: Rs. 100;


• 1 to 5 employees: Rs. 300;


• 6 to 10 employees: Rs. 600;


• 11 to 20 employees: Rs. 1000;


• 21 to 50 employees : Rs. 2000;


• 51 to 100 employees : Rs.3500;


• 101 or more: Rs. 4500