Anyone looking to start a small business or open a small shop in Sikkim must ensure that the requirements mentioned under the Shops and Commercial Establishments Act, 1983 are followed. Every owner should have their Shop License Registration done within 30 days from the setting up of the shop or establishment. The Shops and Commercial Establishments Act was brought into place to regulate the conditions of employees in different commercial establishments. However, if the establishment closes at any point in time, the concerned authorities need to be informed within 15 days.
Every establishment is required to register themselves under this act, whether they are shops, hotels, eating houses, restaurants, commercial establishments or other public places that provide entertainment and amusement. However, even other venues deemed to be establishments by the Government, fall under this category. Shops as diverse as those being used as branches to provide services to people, warehouses, godowns, storerooms and so on, utilised for trade or business, fall under this umbrella.
Apart from food establishments which cover bakeries, canteens, small food stalls, vegetable and meat vendors, shops engaging in manufacturing or storing of commodities also come under this domain.
To get registered under the Shops and Commercial Establishments Act and obtain a shop license, an application must be provided to the area inspector within 30 days of starting the business. A registration fee has to be paid and the following information has to be added – your name, as the owner or employer of the establishment, the name of the manager, the name and address of the establishment and any other particulars that may be asked.
Some of the documents needed include Articles of Association or Trust Deeds if those are available. Agreements indicating Lease Rent or Purchase of Premises also need to be included. Also, bank account details, a list of all Directors or Partners as well as the First Income Tax Assessment order have to be included.
Once all of this is submitted, the inspector will verify the documents before noting down the details in the Register of Establishments. Thereafter, a certificate with a 5-year validity will be given to the employer which should always be displayed in the establishment from that day. The license should be renewed after five years. To do this, the employer will have to provide proof of identity and address, along with the original copy of the license. An application letter for renewing the license will also be needed.
The Shop License Registration is applied for to ensure conformity in the working of establishments. Thus, it includes a list of the rights of employees in the unorganised sector, specifying the obligations of every employer and regulates working conditions. These rules apply to every establishment, shop, hotel, etc., in the nation. This is why every establishment has to register itself, even if it does not have employees.