Shop Act

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Shop and Establishment Registration

All states have their own Shop and Establishment Acts but adhere to the same general provisions. State Labour Departments regulate Shop Act. According to this shop act registration, licenses are issued by the respective states, differing slightly from state to state. The shop and establishment registration Act regulates all shops and commercial establishments within the state.

Definition: A shop is where goods are sold or provided, whether retail or wholesale, and services are rendered. Commercial establishments employ people for office work, such as commercial, financial, trading, or insurance companies.

Why Was the Shop Act License Introduced?

1. Rules Based On Local Culture: Allows states to frame regulations for the labour workforce.
2. Convert Unorganised Sector Into Organised: Aims to bring rules and regulations to organize the sector.
3. Mandates Registration: Business registration is mandatory for entrepreneurs, facilitating better assistance.

Benefits of Shop and Establishment License

1. Legal Right to Conduct Business: Gives legal right to operate within the Act’s jurisdiction.
2. Ease of Opening Business Bank Account: Allows creating a business account using the certificate.
3. Hassle-free Inspections: Provides access to government schemes and low-interest bank loans.
4. Availing Government Benefits: Access to financial plans and programmes.
5. Encourage Expansion: Strengthens market position for reaching newer consumers.

Documents Required for Shop and Establishment Registration

1. Shop or business address proof
2. ID proof
3. PAN card
4. Payment challan
5. Additional business licenses necessary to start a business

Regulations Under The Shop Registration Act

Regulates matters such as work hours, annual leave, weekly holidays, compensation, and wages. It also prohibits employing children, restricts night shifts for women and young people, and enforces rest intervals, hours of operation, record-keeping by employers, and terms of dismissal.

Penalties For Not Acquiring Shop Act License

Penalties vary by state and are typically monetary, operational, or imprisonment-based. Closure of Shop or Establishment may occur if it closes for any reason without informing the Chief Inspector.

Steps Involved In Shop Act Registration

Step-by-Step Guide for Shop and Establishment Registration in Tamil Nadu

Step 1: Contact our Experts
Book a slot with our experts at Thirdeyed. They will address your queries about shop and establishment registration and kickstart the process.

Step 2: Submit your Documents
Provide all the required documents for shop and establishment registration to our associates. Submit the necessary paperwork as per the requirements.

Step 3: Inspection & Approval
The labor department conducts an inspection to verify the information and documents submitted. While inspections are typically not required, authorities may visit your business location. Once approved, your shop act license will be delivered to your doorstep.

Eligibility Criteria to Register Under Shop and Establishment Act 1947

1. The shop or establishment should be within the territorial limits of Tamil Nadu.
2. It should not fall under other legislations like the Factories Act, 1948.
3. Engaged in commercial activities such as trading, banking, insurance, or entertainment.
4. Should have at least one employee, including the owner, on its payroll.

Documents Required for Registration

1. Identity documentation for the company, associate, or owner (voter ID card, PAN card, or Aadhaar card).
2. Address documentation for the store or business (contract or property tax return).
3. Proof of formation, such as a partnership deed or filing document from the Registrar of Companies.

Validity of Registration Certificate in Tamil Nadu
The registration certificate issued under the Tamil Nadu Shop and Establishment Act, 1947 is valid for five years from the date of issue. Renew the registration before expiry by submitting a renewal application with the prescribed fee to the District Labour Office.