How to Apply for Registration Certificate for Shops & Establishments

The Shops & Establishments Act, the numerous regulations under it, the records to be maintained and briefly, the procedure of registration and closure. Today, we shall discuss in complete details the procedures involved in getting the registration certificate under the Shops and Establishment Act. Note, every state has its own set of rules and procedures in this category. Below, we give you an overview, but it is advisable to check for the specific provisions at the Registrar’s Office in your state of domicile.

What is an Establishment?

Establishments included in this Act are commercial establishments, residential hotels, restaurants, eating houses, theaters, or other places of public amusement or entertainment.  Additionally, other establishments that the State Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act would then classify as establishments.

What is a Shop?

Shop means any premises:

• where goods are sold, either by retail, wholesale, or
• Where services are rendered to customers.
• It includes an office a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business.

A shop does not include a factory, a commercial establishment, residential hotel, restaurant, eating house, theater or other place of public amusement or entertainment;

Registration of Shops & Establishments:

As a business owner of a shop or establishment, you are compulsorily required to get the same registered under the Shops and Establishment Act. Here are the specific rules:

• Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:

1. Your name as the employer and the name of a manager, if any;
2. The postal address of your establishment;
3. The name of your establishment;
4. Such other particulars as may be prescribed.

• Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate will be valid for 5 years and has to be renewed thereafter.
• Remember, the registration certificate has to be prominently displayed at your establishment.

Communication of Change to the Inspector:

In case of any change with respect to any of the information given during the application for registration, the same has to be notified to the Inspector’s office within 15 days after the change has taken place. Once again the Inspector will verify the correctness of the details furnished, make the related change in the Register of Establishments, amend the registration certificate or issue a fresh registration certificate, as he may deem fit.

Closing of Establishment to be Communicated to Inspector:

In case you are planning to close down your establishment, within 15 days of closing the establishment, notify to the Inspector in writing the date of such closure and return the registration certificate. After due verification, the Inspector shall remove the name of your establishment from the Register of Establishments and cancel your registration certificate must obtain a digital signature.