If any individuals are planning on employing people either as casual workers, freelancers, full-time employees or contract labour, there are a couple of rules they have to follow to make sure their employees are being looked after. These rules were created for the benefit of the individual starting the company and the people working there, to make sure they were not exploited, to regulate working conditions, and protect worker rights. These are the main reasons why people need to receive a Shop establishment certificate, also referred to as registering under the shops and establishment Act.
Although the rules for getting an establishment registered, are usually similar across the country, they vary to a slight degree while being a mandatory state-based registration, when starting a hotel, shop, or any commercial place. It is a requirement for every new shop or establishment to get registered under the Shops and Establishment Act. After the beginning of the process, licences are dispatched in above a week to two. It is a requirement that the establishment receives and display its licences a month after opening their doors. The licence is valid for five years in some states but in Delhi only has the validity of a year.
Additionally, there are multiple genuine websites allowing people to apply for their shop’s registration licence without having to leave their house, saving them time and the hassle of going through the process.
Every entity with an office or branch carrying out any commercial activity should begin their application process as soon as they start operating. There are many advantages to registering under the act, including some perks from the Government. Additionally, the certificate is an important document needed for a lot of the paperwork process.
It is needed for an establishment to open its current account with the bank. Banks need two documents to prove that the business is functional. Some of these documents include the tax registration, import-export code, and VAT registration etc. Furthermore, the approval of the licence needs an inspection. Without a registration licence, random surprise inspections could spell trouble for the owner.
These are the primary documents and supporting certification needed when starting a business.
* Passport size photo of the applicant.
* Photo of the shop along with the owner.
* List of Directors and management employees, if applicable.
* Details of the company, employees, and their salaries
* Address proof of establishment
* Affidavit to be shared with the applicant
* Information required before Shop and Establishment license
* Employer’s name and manager name.
* Postal address of the establishment.
* Name of the establishment.
* Establishment category of the restaurant, amusement park, hotel etc.
* The number of employees.
To register a shop or establishment, Form A has to be submitted. Ideally, this is provided to the Labour Department, while referencing The Delhi Shops and Establishments Rules, 1954. The owner of the shop shall send a statement to the Chief Inspector in Delhi in Form “A” with fees in cash.
The Chief Inspector will carry out the needed verification and being on the correctness of the statement, register the establishment.