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To ensure worker’s rights and regulate work environments, most businesses in India, such as shops, restaurants, and cafes, must register under the Shop and Establishment Act. Each state has its own rules and regulations, but the Act aims to provide proper working conditions, protect worker’s rights, and ensure holidays and wages are given.
The Act covers various establishments, including shops, hotels, theaters, and other places of public entertainment, and it also covers establishments notified by the State government.
A shop refers to any place where goods are sold or services are rendered to customers, including store-rooms, warehouses, or workplaces that are not factories or places used for public entertainment. Businesses, trades, and professions registered under the Act can obtain a license.
These are the documents required for obtaining a Shop and Establishment License in India:
Additionally, depending on the type of business entity, other documents may be required such as:
To obtain the license, a commercial establishment/shop must apply to the chief inspector of the area within 30 days of commencing business activities. The application is made through a prescribed form that requires important information, such as:
After application, the inspector reviews it and provides the license to the establishment. The license should be displayed at the premises and renewed at the prescribed time. It is compulsory for all business entities to obtain the Shop and Establishment License, even if they operate from home.
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