What is Shop and Establishment License? | Advantage | Complete Process with Swarit Advisors
Channel: Bada CFO
Date: 2021-09-07

#ShopandEstablishmentLicense refers to a license or certificate issued to the business, professions, as well as trade registered under the provisions of the #ShopandEstablishment Act.  

Most of the businesses such as cafes, shops, eateries, restaurants, etc in India are regulated & governed by the provisions of the Shop and Establishment Act. Thus, obtaining Shop and Establishment License is mandatory for these businesses. A Shop Establishment Certificate is required when an entity or a #business commences the process of employing folks as full-time employees, contract-based, casual workers, etc., to monitor and govern the working conditions and also to ensure that their rights are protected. Furthermore, it is also known as the #ShopLicense informally.

As we are talking about Shop and Establishment License, let’s have a look at the meaning of shop and commercial establishment. 

What are the Advantages of Shop and Establishment License?

• Shop and Establishment License acts as a business proof. Hence, it helps in acquiring additional registrations in India.
• It is an essential registration that sets the base for further registrations.
• Shop License provides legal acknowledgement to the particular shop or establishment.
• It’s mandatory for opening a bank account in the name of an establishment or shop.
• Shop License helps in raising investments by way of #Venture Capitals or Loans for the proposed business establishment.

Why is it Mandatory to Obtain Shop and Establishment License?

People obtain registration under the Shop and Establishment Act usually for opening a current bank account in the name of the proposed business with the bank.

Furthermore, besides opening a bank account, it is more significant to have this license or else the inspector inspecting the business premises may cause unnecessary problems for the said businessman.

Get a Glimpse of the Establishments that are required to obtain Shop and Establishment License 

• Service Centres
• Wholesalers or the Retailers’ shops and establishments
• Store-rooms, Warehouses, and Godowns
• Also, any other working places
• Restaurants and Eateries
• Hotels
• Theatres, Amusement Parks, Entertainment, etc

Procedure for Shop & Establishment License 

Step 1- Download the application form for the registration from the official website of the respective state in which the said shop or establishment is located. 

Step 2- In this step, the owner of the business must fill all the necessary details asked. 

The term necessary details include the following listed:

1. Name of the Proposed Shop and Establishment
2. Name and Details of all the Employees working at that time
3. Name and Details of the concerned employer
4. Address proof of the Registered Establishment together with the NOC (No-Objection Certificate) or the Rent Agreement, only in the case where the place is rented premises.
5. PAN card details of the concerned employer.

Step 3- Once the owner or the employer have fills all the required details accurately, then in the next step he or she needs to submit the said application form either to the Inspector in-charge or the Chief Inspector of the Shop and Establishment Act together with prescribed amount as fees.

Step 4- After the submission, the application along with all the documents submitted will be verified and checked by the higher authorities.

Step 5- If in case, all the documents submitted along with the applications are in accordance to the requirements of the said act, then a certificate of registration shall be issued to the proposed shop or establishment.

Essentials for Obtaining Shop and Establishment License in India 

• Name of both Employer and Manager.
• Name of the Establishment.
• Postal Address of the said Establishment.
• Category of Establishment such as the restaurant, amusement park, hotel, etc.
• The number of employees working.

Documents Required for Shop and Establishment License 

• Employer’s identity proof in the form of Aadhaar Card, Driving License, PAN (Permanent Account Number) Card, Voter ID.
• Photo of the Establishment or Shop.
• Employer’s passport-sized photograph.
• Any Utility Bill in the form of Electricity Bill, Water Tax Receipt of the working premises. However, the said utility bill should not be two months older.
• Copy of Rent Agreement or Lease Deed is required in case of the rented property.

Note- Various other documents are needed as per the concerned business or establishment.

Read More - https://swaritadvisors.com/shop-establishment-license

Phone:- 9821399320
Email:- info@swaritadvisors.com

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