Shops and EstablishmentsLicense Frequently asked questions
Q 1. What is meant by shops andestablishment license? This is a license required for businesses involving premises where any trade, profession, business or any other related activity is carried out. This Act is applicable to all persons employed in an establishment with or without wages, except the members of the employers’ family.
Q 2. Does the license conditions vary fromstate to state? (Shops and establishmentact) Yes. The Shops and Establishment Act is a state legislation act and each state has framed its own rules for the Act.
Q 3. What type of activities require shopsand license agreement? It varies from state to state, in some states even private educational institutes and places of public amusement and entertainment like – restaurants, hotels, motels, teashops, resorts, spas etc. have to obtain the said license. Premises, where activities of registered societies, registered or unregistered charitable trusts are carried out, also require this license.
Q 4. What sort of rules are covered by theshops and establishment license?Some of the rules as laid down in the ‘Act’ to be covered in the license are:- Working hours per day and week. Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work. Employment of children, young persons and women. Rules for annual leave, maternity leave, sickness and casual leave, etc. Rules for employment and termination of service.
Q 5. What are the important conditions toknow for registration of shops? Under the shops and establishment act, registration of shop / establishment is necessary within thirty days of commencement of work. Also, Fifteen days of notice is required to be served before the closing of the establishment State government can exempt, either permanently or for specified period, any establishments from all or any provisions of this Act.
Q 6. What are the documents that are to besubmitted in the application form for theregistration of a shop / establishment?Documents to prove the existence of the firm: e.g. Certificate of incorporation / partnership deed PAN number