Skip to main content

All You Need to Know about the Shops and Establishment Act

The basic definition of a shop is an outlet where goods are sold in retail or in wholesale, or services are provided whether online or in person. An establishment is any place (including a shop) which constitutes as a place of service. For example, commercial establishments, residential hotel, eating houses, theater, public places of entertainment, etc which provides employment to people and pays them a salary. The shop and establishment act was introduced in 1948.
The Shops and Establishment Act has been implemented in various states of India. It provide legal rights in the interest of the employees and employers working in the unorganized sector of employment and to oversee and regulate the working conditions
While there is not one uniform act which governs all the states, most states have their own model of the act.

The basic provisions of the act are as follows:

  1. Registration of the shop/ establishment within 30 days of commencement.
  2. All commercial establishments must adhere to The Weekly Holiday Act, 1942.
  3. Communication of closure of the establishment within 15 days of the end of operations.
  4. Specification of hours of work per day per week.
  5. Specifies the opening and closing of the shopper day, closing days, national holidays and overtime work. Along the usual standard, shops cannot open before 7 AM and close after 8:30 PM.
  6. States the rules for employing young persons, women and disabled persons in the shops. Minimum age of employee cannot be less than 14 years.
  7. Lays down the minimum wages.
  8. Specifies duration of sick leave, maternity leave etc
  9. Rules for employment and termination of employment.
  10. Specifies obligations for employers.
  11. Specifies obligations for employees.
As a business owner, you need to register under the Shops and Establishment act. Follow the given guidelines to register for the same:
  1. Application: Procure the prescribed application, duly fill it out and submit it to the local inspector along with the fee, within 30 days of commencement of business.
  2. Fill information: It should contain the following information:
  3. Name of the employer and the manager(if any)
  4. Postal address of the establishment
  5. Name of the establishment
  6. Any other information prescribed
Finally, once the inspector has successfully verified the application, he/she will enter the details in the Registrar of Establishments and issue a certificate of the establishment to you. The license has a validity of five years after which it needs a renewal. Now apply for shop establishment license in India with the help of experts at LegalRaasta.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.

Comments

Post a Comment

Popular posts from this blog

How can digital marketing help your startup to grow faster?

No one can deny the fact that startups need recognition. Startups, being new to the market, need to tell people that they exist. Market primarily consists of potential customers, investors as well as partners. And these are vital for any business. Without marketing, you and your startup is nothing. No one knows you, so they won’t even bother to spare you a glance. Your idea may be unique and outstanding, but without marketing, that idea is completely useless. Being an entrepreneur, you need to know how to sell your products and services. To sell, people need to know about your existence. You need to attract them. To attract customers, you need marketing. Now, there are two primary forms of marketing. First is traditional marketing and the second being, digital marketing. How are you supposed to choose the best way? How are they going to help? The same is discussed below. Traditional marketing is nothing but the old ways of promoting a company. It can be done via posters and banners. ...
7 comments
Read more

The 3 Relationships That Matter When Your Company Is Being Acquired

Getting acquired is one of the major moments of your life. It is a mix bag of feeling because your startup is like a baby that you nurtured from the start and now after selling it away, things will never be the same and you might not have the same freedom to run that business as you used to. The whole process itself is very tedious and involves a lot of aspects. Your legal advisor and countless manuals may furnish you with all the details however you might not have anyone who would guide you how to handle the people aspect related to you’re the whole process of acquisition. So let me help you now. There are a lot of people involved and you need to have cordial relation with almost all of them and have no grudge against any. During this delicate time, it is essential for you to maintain your calm and no matter how stressed you are from the inside, you must stay calm on the outside. And in this critical time, it is imperative for you to have soft skills and here are three important rela...
2 comments
Read more

5 Tips to Help Your Startup Operate Smoothly from Day 1

To pass the different stages of building a startup, you need not climb the treacherous mountains but pass through the valleys paved by others. Starting your own venture can be a quite daunting task. The can be like hurtling down a potholed road with the ups and downs and the unpredictability that takes extra efforts to overcome. It is good to heed the advice of the experienced people. It is always advised to take away from experiences of a person who has gone through the potholed road. To be an entrepreneur in competitive times like these can be a daunting and a demanding task. You need to give in all you have with zero complaints. The following are the best ways to get through the startup transition on day 1: 1. Keep your heart full, your mind clear and your body active You need to keep yourself well through the transition process. It’s good to take some time out for yourself. Do some physical activity, read in your free time and learn every time. You need to understand that...
1 comment
Read more