Owning or running a shop or small enterprise or establishment is a light form of business with a mandatory rule that the owners have to acquire a Shops and Establishments Registration. Every shop or establishment has to get this registration depending on the number of employees. Their main aim is to look after the people who are working there and protect their overall interests.
The Act applies to any establishments include shops, commercial businesses, residential hotels, restaurants, eating houses, theatres, or other places of public amusement or entertainment. Furthermore, the Government has the right to add other establishments under this Act but have to do this through a notification in the Official Gazette, declaring a place as an establishment for this Act.
Shops, on the other hand, are a little different, implying premises where businesses are carried out either by retail or wholesale. Furthermore, they are also locations where services are rendered to customers and can include store-rooms, godowns, warehouses or work-places, whether in the same premises or otherwise, in connection with trade or business.
As mentioned earlier, business owners must register under this Act and match the rules added. Some of the rules are:
The application has to be submitted in the proper format, using the prescribed form, to the
inspector of the area, in 30 days of starting work. There are fees and multiple certificates and
documents that should go along with it. Some of the certificates to be submitted along with it are:
* The employers and managers name
* The postal address
* The name of the establishment
* And a few documents relating to the business including
* Memorandum and Articles of Association, Trust deed, or Partnership Deed
* Lease Rent Agreement, Premises purchase Agreement
* List of Directors, Managers, Partners
* Bank Account Number and the rest of the bank details
* First Income Tax Assessment Order, or PAN Card
* BMC declaration
* Date of commencement of business
After receiving all the applications, supporting documents, and payment receipts, the inspector
verifies the information sent over and the accuracy of the forms. The applicant has about two
weeks to make any changes to the details, in case there were any errors or typos.
After being satisfied with all the information received, the inspector adds it to the Register of Establishments and issues a registration certificate connected to the establishment. This document is valid for five years and has to be renewed, thereafter. Furthermore, the registration certificate has to be mandatorily be displayed the premises in plain sight of anyone entering the premises.
The Shops and Establishments Act keeps an eye on working conditions, puts down the rights of employees in the unorganised sector, and provides a list of obligations for every employer. It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments.