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Shop and establishment certificate

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Shop and establishment certificate

When a business entity begins to hire people may be as casual workers, full-time workers and contract based workers to control the working conditions and make sure that the right of workers are protected then there is a need to get shop establishment certificate. It is also known as shop license informally.


The shop establishment certificate is a state-based registration needed for the establishment of hotel, shop and any commercial place. It is important for every shop to register under the shop and establishment act. The applicant can get the license in just 30 days from the establishment of work. The shop and establishment certificate is valid only for 1 year. It needs to be renewed after every one year.

Who must have shop and establishment certificate?

• Any person who is running a shop or office where he carry out their business activity.

• Every business owner who has an office or branch where any business activity is to be done.


Objective of shop and establishment act

• It provides mandatory rules and regulations to employees and employers in the sector of employment.

• It controls the conditions of work in shops, restaurants, residential hotels, theatres, eating houses and other entertainment places.

Is shop and establishment mandatory for all?


Shop and establishment is mandatory for all business owners including owners working and maintaining a business from their homes. It is very useful when a business owner wants to apply for a loan or open a current bank account. This certificate ensures that all employees get equal rights in the business.


Documents needed for this process

• Shop address proof

• ID proof of business owner

• PAN card of proprietor

• Challan of payment

• Business licenses important to start a business


Which commercial establishment requires shop and establishment act?

• Shops

• Restaurants

• Residential Hotels

• Theaters

• Eating places

• Other commercial establishment

Process to get registered under shop and establishment act


From the 30 days of the commencement of business, the owner of the shop is needed to send an application in the prescribed form to the Inspector in charge with the prescribed fees.


From the 30 days of the commencement of business, the owner of the shop is needed to send an application in the prescribed form to the Inspector in charge with the prescribed fees.


The application form needs the following details:-

• Name of the owner and establishment

• Postal address of the shop

• Category

• Number of employees working in the establishment

• Date on which the establishment commenced

After the submission of the application, the inspector will check and review your application. If he satisfied with your application then the shop or establishment act will be registered. A registration certificate will be issued to you.

If a business is closing down then employer is needed to notify the inspector in writing within the 15 days within 15 days of closing. The inspector will refuse the registration given under the shops and establishment act.

Any change required to information provided at the time of registration is needed to be intimated to the inspector within 15 days from the date on which such changes take place. After reviewing, the inspector will make changes and if needed will issue a fresh registration certificate.

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