Overview of Shop and Establishment Act applicability.
The Shop and Establishment Act regulates conditions of work, lists rights of employees in the unorganised sector, and provides a list of obligations for every employer. However, this is best suited for shops all across India, every benefit making foundations, lodgings, bistros, eating circles and joints, eateries, cinemas and for all public places of entertainment.
Many entertainment resources are also covered under this Act. When registering for the shop and establishment act in the case of SSI or MSME businesses in the unorganised sector, it serves as a proof for the existence of the business.
Who Is Eligible Under Shop and Establishment Act?
The Shop and Establishment Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places, come under the purview of the Act. Get to know what is commercial establishment meaning. The definition of a ‘Commercial Establishment’, as given in the Act is:
1. Any commercial sector, such as banking, trading or insurance establishments
2. Any establishment where individuals are employed or engaged to do office work or provide service
3. The hotels, eateries and boarding houses or a smaller café or refreshment house
4. Amusement and entertainment places such as theatres and cinema halls or amusement parks
All such above mentioned commercial establishments come under the Act and need to adhere to the norms and regulations set by the Act for the treatment of their employees. The exceptions to the Act vary in the States and each State has given a list of shops and establishments act that come into the Act, and who require the registrations under the Act to run their business in the State.
Benefits of registration under shop and establishment Act.
To get right of doing business:
After Getting certificate from government department entity has legal proof for your business by help of certificate you will obtain the right of doing business in your location or your state.
Ease of opening a current account of establishment:
As per the RBI norms, every shop and establishment need to open a separate business Current account in the name of business. This is to make sure that it has to reflect its day-to-day transactions. The banks require you to submit a valid entity proof to open such an account. Perhaps, the shops and establishment license will help you to open this current account with ease.
The local municipality and the State Government authorities will conduct regular visit and inspections to check whether the shops & establishments in a particular locality are functioning properly or not. If you have the shops & establishment certificate in place, you can get over such inspections quickly and smoothly.
Government benefits: The State DIC Department is the policy-making body of all small businesses in the State. It comes up with certain schemes to benefit small businesses from time to time and businesses having the shops & establishment license can only avail of these schemes.
Each state follows a separate shop and establishment Rules and regulations. The fees and time will might vary from state to state. These are common registration process to get shop and establishment certificate.
1. Almost within 30 days from the date of commencement of any business, the employer of the shop/commercial establishment should send an application to the inspector in-charge.
2. The application should be in the agreed form. Moreover, the employer should submit it along with the prescribed fees.
Time taken for the registration of shop and establishment in India?
The registration process along with the physical verification may take around 7 to 10 working days. However, the time duration may vary state to state.
Records to be maintained under Shop & Establishment Registration:
Under the Shop and Establishment Act, every business has to seek approval from the Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary, and holidays. However, the requirements may vary from state to state. Files related to annual holidays and the number of employees need to be submitted to the office of the Municipal Corporation annually further no Regular return needs to be filed under this Act.