Shop & Establishment Act

A “Commercial Establishment” is:-

• Any commercial sector establishment, such as banking, trading or insurance establishments
• Any establishment where individuals are employed or engaged to do office work or provide service
• The hotels, eateries and boarding houses or a smaller café or refreshment house
• Amusement and entertainment places such as theatres and cinema halls or amusement parks

Factories are not covered by the shops & establishments act as they are regulated by the Factories Act, 1948.

In most states, the time limit to apply for shop act registration is within 30 days from the date of establishment.

Yes, each branch of a business entity needs to be registered separately irrespective of the jurisdiction of the authority.

Yes, in most of the states, the registration is mandatory within 30 days irrespective of the number of employees. So, first the business entity should refer the state law related to shop & establishments.

In case, the shop or establishment is intended to be closed or shut down, the business entity shall intimate it to the Chief Inspector within prescribed time limit. The Chief Inspector will review the request for closure and remove the shop or commercial establishment from the register and cancel the registration certificate.

Every person registered under Shop & Establishment Act is required to keep up-to-date registers regarding details of employment, fines, deductions, advances, salary, holidays etc.

Fees for Shop Act registration in each state varies. Further, in the state itself, the fees depend on the number of employees and workers employed.