Like most other Indian states, an establishment must apply for the Shops and Establishment Act if they are planning on legally conducting business in the area across the country. However, much like other states, the Labour Department governs the rules relating to the Shops and Establishments Act for that specific state, which is the main reasons why there are small differences in the rules when reviewing them state wise.
At a recent meeting, the Labour Employment Skill Development and Entrepreneurship Department of Mizoram released a notification in which they mentioned a few Business Reform Action Points. The Government of India was instrumental in releasing these points, relating to the removal of the regular mandatory inspections that was handled shortly before registration under the Mizoram shops and establishment rules 2011. The purpose of these removals was to ensure the granting of Shop Licences within one day from the date of application.
The details state that no inspection will be undertaken by inspectors, before the registration of the business or enterprise.
However, the exception implies that inspections can be handled, if some provisional violation of the applicable labour laws are found, or a complaint regarding them is lodged, against the establishment.
To sum it all up, the notification states that the final certificate of registration will be granted to the applicant on the same day if the application filed is complete in all respects.
In Mizoram, the ‘Shop and Establishment Registration’, also called ‘Trade license’ in many states follows the Shops and Commercial Establishments Act 1958. This regulates the working hours, weekly and monthly offs, payment of wages, terms and condition of employment, holidays, leave etc. of persons employed in shops, or other commercial establishments. Every employer has to mandatorily file their statements and pay the fees to the Chief Inspector of the locality where they are starting their business, 30 days after opening the doors of the establishment.
The Shop and Establishment registration is obtainable on any premises includes residential premises used for business or dealing in products or services, whereas, the Trade license only applies to commercial entities running businesses in public places.
Individuals planning on starting any shop or business need to get them registered with the local authorities, the Labour Department, under Shop and Establishment Act. On the other hand, Trade licenses permit a person to carry out a particular business. The business, and the licence it receives, is specific to the location where it was applied. If the business plans on changing their address, the concerned authorities should be informed. The rules and regulations for a Trade license are strict, ensuring that the company does not perform any unethical practices.
The Shops and Establishment Act governs the rights of employees and their working conditions. It includes the number of employees, wages, leaves, hours etc, which no such rules apply under the Trade license.