The Shops and Establishment Act dictates everything that one needs to know about how commercial establishments operate. It also governs the working conditions and rights of workers engaged in the unorganized sector, including wage payments, leaves and holidays, work hours, etc. Trade licenses are a subject of the individual state and a requirement for anyone who wants to register their shops. Overall, the Shops and Establishments Act is a State legislation, with all procedure handled through the Labour Department.
The Shops Registration Licence and Trade licences are mandatory for any individual to run their business, aiding in the governing, functioning, and conducting of business. It also assists SSI and MSME businesses in the unorganized sector, who also need these certificates and licences as proof of the existence of their business and when applying for documents and certificates, including opening company bank accounts.
Further, they differ depending on the details of the application and the Indian state where the applications are processed. There are different rules for various categories like restaurant, hotel, theatres, commercial establishments, retail or trade businesses.
Any individual employing a specific number of individuals has to register under the Act. Various rules differ based on the number of people employed. If the employee numbers fall within the minimum and the maximum number of the employees, determining the eligibility of an establishment, it should register.
Furthermore, here are some categories under which rules are created to protect the employees; the hours of work, employment of children, young person or woman, holiday structure, whether paid leave or public holidays.
Some additional rights under the Act are:
* Every employee should receive wages or salary at the time from the employer
* Every employee must be entitled to 18 sick and casual leave in a year
* Every employee should receive overtime if they work more than eight hours. And the
overtime is double at the hour's basis
* Every employee is entitled weekly holiday paid and also National or Festival Holidays
notified from time to time
* Every employee is eligible for encashment of the leave with wages for eight days every
year
* Business owners have to begin the registration process, thirty days after starting their
business.
* Submit the necessary application in the proper format
* Submit the additional supporting documents and certificates
* Handle the insection of the premises, which happens after the documents and
information provided, check out
* Collect the verification review which is used to generate the registration certificate
When going through the forms, make sure the following details are entered correctly.
* Name of the employer and manager, if any
* Postal address of the establishment
* Name of the establishment
* Other particulars as prescribed.
The certificates are valid for five years and have to be renewed post that. Furthermore, they are
proof of the establishment being registered and needed for multiple purposes. Make sure they
are looked after well and submitted in copies whenever needed.
1. PAN Card
2. Address Proof
3. Email id and Contact number
4. Firm name
5. Service name