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Shop and Establishment Registration in Machilipatnam
MS Legal Associates:
Owning a shop or a small establishment is a small form of business and it is mandatory for the owners to obtain the Shops and Establishments Registration. This statue is applicable to a vast range of businesses.
Every shop or establishment has to get this registration, depending on the number of employees.
What is an Establishment?
Includes a shop, commercial establishment, residential hotel, restaurant, eating house, theater, or other place of public amusement or entertainment to which this Act applies and includes such other establishment as the State Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act.
What is a Shop?
Shop means any premises:
1. Where goods are sold, either by retail, wholesale, or
2. Where services are rendered to customers.
3. It includes an office a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business
A shop does not include a factory, a commercial establishment, residential hotel, restaurant, eating house, theater or other place of public amusement or entertainment;
Registration of Shops & Establishments: As a business owner of a shop or establishment, you are compulsorily required to get the same registered under the Shops and Establishment Act. Here are the specific rules:
1. Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:
a) Your name as the employer and the name of a manager, if any;
b) The postal address of your establishment;
c) The name of your establishment;
d) Such other particulars as may be prescribed.
2. Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate will be valid for 5 years and has to be renewed thereafter.
3. Remember, the registration certificate has to be prominently displayed at your establishment.
The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganised sector and provides a list of obligations for every employer. It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments. Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.
Documents required for Registration:
Details of Employer/Manager
Memorandum and Articles of Association/Trust deed/Partnership Deed
Lease Rent Agreement /Premises purchase Agreement
List of Directors/Managers/ Partners
Bank Account Number details
First Income Tax Assessment order/PAN
Date of commencement of business