Shops and Establishment Registration:
The registration under shops and establishment act is regulated by the labour department of respective state, and it is mandatory for all business entities which do not fall within the ambit or applicability of The Factories Act, 1948.
The Shop and Establishment Act registration regulates hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments for public entertainment or amusement and other establishments and to provide for certain matters connected therewith.
This registration is compulsory for every business place of work except those who falls under Factories Act 1948. Even cases where the employees are working from home, this registration is necessary to obtain. It is a state regulation and each state has separate shop u0026amp; establishment regulation.
Most of the state governments have passed their own law through the legislature assembly or have adopted some other state government legislation on shops and establishment.
We are providing professional services in the matter of registration of the establishment and compliance with various provisions which may be required under respective Shops and Establishment Act.
Applicability:
Applies to all commercial establishment which includes shops, offices, schools, hospitals, societies, charitable trusts, educational institutions which operate for the motive to earn profits. However, factories are not covered by the shops u0026amp; establishments Act and are regulated by the Factories Act, 1948.
Registration under Shop u0026amp; Establishment Act:
The Shop and Establishment Act registration regulates hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments for public entertainment or amusement and other establishments and to provide for certain matters connected therewith. This registration is compulsory for every business place of work except those who falls under Factories Act 1948. It is a state regulation and each state has separate shop u0026amp; establishment regulation.
Meaning of Shop:
A premises where any trade or business is carried on or where services are rendered to customers. It includes offices or warehouses, whether in the same premises or not, used in connection with such trade or business, but does not include a shop or office attached to a factory within the scope of the Factories.
Commercial Establishment:
A Commercial Establishment shall mean a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house etc a cafe or any other refreshment house
Time to Apply for Registration:
The application for Shops and Establishment Registration need to be filed before the Labour Department having jurisdiction on the registered office of the company or LLP and every other place of business where employees are employed. The application must be filed within 30 Days of the establishment of the place of business.
Features or Benefits of the Shop and Establishment Registration:
Legal Entity Proof – Each shop or business required a legal entity proof like proprietorship firm or partnership firm etc. a legal entity proof which gives the right for doing the business in your area or state for the same.
Business Bank Account –Every banks is required a legal entity proof to open a current bank account. Each shop u0026amp; Establishment has to open a separate bank account for the daily transactions as per the RBI Compliance. So on the basis of the shop certificate you can easily open a current business bank account.
Smooth inspections: State government and local municipality conduct regular inspection visits for checking the proper working of shops and establishments along with license as well. If you have the Shop Act license, then you can quickly get over the inspections every time.
Government Benefits:Each state have a DIC Department which creates the policy in the respective state for the all small business. On the basis of Shop License Registration Certificate you can easily avail the government benefits.
Documents Required for Registration Under Shops and Establishment:
Certificate of Incorporation, MOA u0026amp; AOA of Company / LLP Agreement of the LLP,.
Copy of PAN Card of the Company or LLP.
List of Director or Partners and their ID and Address Proof.
Copy of Board Resolution or Partners Consent.
Actual Photo of the Shop or Establishment with Name Board in local language at the entrance duly displayed,
Address Proof of the Company or LLP where the name of the company is clearly mentioned.
Copy of the Licence, Permit, Registration which is mandatory under any law to be obtained prior to starting the business of the applicant in India.
The registration under shops and establishment act is regulated by the labour department of respective state, and it is mandatory for all business entities which do not fall within the ambit or applicability of The Factories Act, 1948.
Records to be Maintained under Shop u0026amp; Establishment Registration:
Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually further no Regular return is needs to be filed under this Act.
Shops and Establishment:
In India every state have enacted a law to regulate conditions of work and to provide for statutory obligations for the employer and for the right of employees.
The shops and establishment Act is applicable to all kind of commercial, trading, banking, insurance establishments, establishments where persons are employed or engaged mainly for office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theater, cinema or any other public amusement or entertainment.
The law require registration of establishment with department of labour and maintenance of registers having details of employment, fines, deductions and advances, salary, holidays etc. the name of register and its form may vary from state to state.
The purpose of the law is to regulate Working hours, to lay down guidelines for spread over, rest intervals, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, young persons and women, rules for annual leave, maternity leave, sickness and casual leave, and to provide for maintenance of registers and records and display of notices, obligations of employers as well as employees.
The registration under shops and establishment act is mandatory in nature and should be applied within 30 days. Any failure on the part of employers in getting the registration under shops and Establishment Act is a serious offence with criminal liability.
This is a Mandatory Registration and it is Applicable almost to all Businesses in India.
Trade License – Tamil Nadu
Trade license is a government endorsement authorizing a person or a party to commence a business. The document is mandated by law to ensure that the business is in concurrence with the stipulated rules and ethical codes. A business pursued without a trade license document could endanger the validity of the business, and might as well incur hefty penalties. In this article, we look at the procedure for obtaining Trade license in Tamil Nadu.
Trade license in Tamil Nadu is also know as The Shop and Establishments Act license. The Act lays down stipulations based on the following criteria to businesses initiating their endeavors:
Registration Procedure in Urban Locales:
The process of availing, maintaining or cancelling the trade license varies from state to state and even from a panchayat or town to that of a city. We have elucidated the procedures pertaining to both the scenarios.
Applicants of Trade License may note that any place within Municipality/Corporation limit must be used for any of the purposes specified in schedule 5 of the Tamil Nadu Districts Municipalities Act, 1920/Schedule-4 of the Madurai City Municipal Act, 1971/Schedule 4 of the Coimbatore City Municipal Corporation Act, 1981. Let us now examine the procedure to apply for a trade license in the urban locales of Tamil Nadu:
Step 1:- Website:
First things first, the applicant must visit the official website of the Tamil Nadu Government wherein Form-1 can be obtained by remitting a fee of Rs. 5.
Step 2:- Specification of Details:
The details demanded in the application form must be described. The details to be specified include the purpose of utilization of the particular property, the name of the applicant, the name of the father/husband of the applicant, the age of the applicant, mobile/telephone number, residential address, trade license address, name of the owner of the building, property tax ASST. Number, trade license number and date for the previous year, the timeline of license requirement, square feet for the trade or area of business, monthly rentals payable for the building, the receipt number of the license amount and date, and the details of any other licenses issued previously. The application must attest his/her signature in the application.
Step 3:- Submission:
The application must be made to the Commissioner within the stipulated timeline.
Step 4: Scrutinization:
The commissioner will then scrutinize the submitted application in terms of suitability of the place and the likelihood of any hazards. On the satisfaction of the conditions of the process, the commissioner will issue a demand for the license fee to be remitted within seven days (the license fee can be remitted online).
This concludes the procedure of trade license application. Upon the fulfillment of all conditions, the trade license will be issued within a week’s time.
Renewal Norms
The application for renewal of license, upon the expiry of the terms of license, must be made before the 1st of March in Municipalities, and 45 days prior to the commencement of the financial year in corporations.
Process of Registration in Panchayat:
The process of registering for trade license in a Panchayat differs from that of a municipality or a corporation. The procedure of registration for the former is described below:
Step 1:- Online application:
The applicant must fill the application provided in the e-town panchayat website and attach the required documents.
Step 2:- Sanitary Inspector:
The filled-up application is processed to the sanitary inspector of the town panchayat, who will schedule the date of conducting an inspection. An intimation of the same will be sent to the applicant through SMS and email.
Step 3:- Inspection and Reporting:
The inspector inspects the premise and the machinery installed in it, and prepares an inspection report by specifying the details on the online portal.
Step 4:- Fees:
The fee details, which are determined by the council/executive officer, are specified by the inspector in the portal.
Step 5:- Forward to Sanitary Officer:
The Sanitary Inspector (SI) forwards the file and inspection report to the concerned Sanitary Officer.
Step 6: Scrutinization:
The Sanitary Officer (SO) verifies the file and inspection report. He/she may choose to conduct another inspection if the need is felt for the same. The file may be reverted to the SI in case of any irregularities in the file.
Step 7:-Forward to the Executive Officer:
As a part of a repetitive cycle of events, the SO forwards the file to the executive officer, who will in-turn verify the file and endorse it. The file may be reverted to the SO in case of any irregularities in the file.
Step 8:- Demand Notice:
Post approval of the application, a demand notice (related to the fee) is issued to the applicant.
Step 9:- Issue of License:
The license is issued to the applicant after he/she makes the payment as stated in the demand notice.
Rectifications to the Document:
If the concerned parties discover any discrepancies in the application, the same must be addressed to the concerned official within 15 days of receiving it. The amended certificate will then be issued in due course of time.
Winding-up Norms:
The closure of any business must be reported to the concerned officer within fifteen days of the date of closure. He/she will in-turn record it in the ‘Register of Establishments.