SHOP ACT (Shops and Establishments Act)

The Shop Act, also known as the Shops and Establishments Act, is enacted in various states of India to regulate working conditions of employees in shops and commercial establishments. It also protects the rights of both employers and employees

Shops are defined as the premises where the selling of goods take place either by retail or wholesale or where services are rendered to customers.

Documents for Shop Act:

Category Documents required
Proprietorship ·       Adhar card and Pan card

·       Mobile no and email address

·       Electricity bill of business place

·       If rented, rent agreement and NOC

·       Business details (Type of business, name, address etc.)

·       Employee details
HUF ·       Same as of proprietor

·       HUF Deed

·       HUF PAN card
Partnership ·       Same as of proprietor

·       Partnership Deed

·       Partnership PAN card
Company ·       Same as of proprietor

·       Incorporation certificate

·       DSC & DIN of Directors
LLP ·       Same as of proprietor

·       LLP Agreement

·       LLP PAN card
Trust ·       Same as of proprietor

·       Trust Deed

·       Trust PAN card

·       Certificate of registration
Society ·       Same as of proprietor

·       Society PAN card

·       Certificate of registration

Benefits of Shop Act License

  1. Legal Recognition
  2. Protection Under Labor Laws
  3. Ease of Business Operation
  4. Brand Reputation
  5. Helps in Resolving Employee Issues
  6. Regulation of Working Hours and Conditions
  7. Access to Financial Services
  8. Compliance with State-Specific Laws

 

CLOSURE PROCEDURE

To surrender shop act license, following are the steps to be followed while surrendering:

  • Login the Website of Municipal Corporation with your credentials
  • The Applicant should open the state wise prescribed form of cancellation of their license.
  • After filling prescribed form, the applicant needs to submit the form along with the supporting evidence (copy of paid dues of employees)
  • Once all the aforementioned steps are done, take a copy of the form
  • Applicant needs to inform his area inspector within ten days of closing his shop in writing.
  • The inspector will then verify application, and if it is found to be true, they will cancel the registration certificate.