The shop and Establishment Act regulates the work condition and enlists the rights of employees in an organized sector. This Act applies to societies, charitable trust, educational institutes, and any other establishment which runs on the motive of earning a profit and is not only restricted to the commercial establishment.
Shop act license registration is essential and mandatory for anyone who is planning to own or already owns a shop or commercial establishment anywhere in India. They are required to register their shop’s name with the government of India. They usually have two option to register their shop name:
- Shop Registration under the MSME Act 2006
- Shop Registration under Shop and Establishment Act from state respective municipal party.
The maximum time allowed to apply for the license is within 30 days, a chief Inspector would review the application, and after successful verification, you would be obtaining the registration certificate. The shops or establishments need to ensure the safety, security, and wellbeing of their employees. They should also make provisions to provide a reasonable level of tidiness, lighting, ventilation, and suitable insurance from damage, as per provisions. However, these laws may vary from state to state. Some states adhere to stringent rules to prevent child labour in such shops or establishments.
Click here – FPS Full Form And Meaning
What is MSME Registration?
MSME registration, also called Micro Small and Medium Enterprises Registration is a governmental scheme-enabling registration that is provided to the Micro Small and Medium Enterprises. The classification of these enterprises is done based on how much they have invested in their business, equipment, and machinery.
The followings can obtain MSME registration in India:
- Proprietorships
- Hindu Undivided Family
- Partnership Firm
- One Person Company
- Limited Liability Partnership
- Private Limited Company
- Limited Company
- Producer Company
- Any association of persons
- Co-operative societies.
Aspects covered and Documentation requirement for Shop Act License Registration
Some aspects covered under the Act are:
- Opening and closing hours
- Close days
- Hours of work
- Leave policy
- Dismissal
- Weekly holidays
- Wages for holidays
- Cleanliness
- Record keeping
- Interval for rest and meals
- Lighting and ventilation
- Prohibition of employment of children
- Employment of young person or women
- Deductions from wages
- Time and conditions of payment of wages
- Accidents
- Precautions against fire
Documents required for Shop Act License Registration are:
- Aadhar Card / Driving License / PAN Card / Voter ID (Any one of the followings)
- Electricity Bill
- Rent Agreement (Only if rented)
- Photo of owner
- Photo of the shop along with the owner
Complete Guide About Shop Act License Registration
The Shop Act License Registration aims to manage personal wages, long-term work, leave, vacations, and installment payments for other working conditions used in stores and businesses.
This is a kind of legal permission to allow that do Business at a particular location. This license is required if there is a physical store or office business is located. Prove that it’s one specific Business that runs there.
Benefits of Shop Law Licensing in India
- By enrolling in a Gumasta Permit, you will receive all the benefits and obligations from the Maharashtra State Government available with this plan.
- All companies need their financial balance to collect cash from their customers. Most banks require a Gumasta permit as proof of their character to open a company’s financial balance.
The purposes of the Shop Act are to:
- It is a legal obligation and right to the unorganized employment sector, employees, and employers of stores and facilities.
- The shop act defines working conditions in shops, commercial establishments, residential hotels, restaurants, eateries, and other public entertainment venues.
How to Register MSME?
- Small and medium industry owners must complete one form that can be done either online or offline.
- In case a person wants to register for more than one industry, that person can also do personal registration.
- The person can now provide the self-certification certificate.
- There is no registration fee required to complete this process.
- Enter your details to get your registration number.
Also read – https://taxfyle.com/blog/best-tax-software/
Documents Required for MSME Registration
- Proof of your business address
- A copy of the sales invoice and purchase invoice
- Partnership Deed/MoA and AoA
- Bills of Machinery and copy of Licenses and Purchased
GST Registration
Every Business is operating, whose turnover exceeds Rs. 40 lakh must register as an average taxable person. This process of registration is called GST registration.
What are the benefits of registering with GST?
- You can enjoy an input tax credit
- Limited compliance
- You can easily Register on e-commerce websites
- You have a competitive advantage
Government Launched Some of the MSME Schemes
- Udyog Aadhaar memorandum
- Zero Defect Zero Effect
- Women Entrepreneurship
- Credit Linked Capital Subsidy Scheme
Labour License
If a person is employing more than 20 workers on each project site, then you required to have a contract labour license from the Licensing Officer of the area under Contract Labour ( R&A) Act, 1970
Documents Required for Registration
- A copy of the report showing the legal status of the company.
- Photograph of the document showing the allocation of PF code No.
- Copy of receipt/insurance policy received.
- Copy of challans showing remittance of security deposit.
- After all, you have to submit a license fee to receive the labour license.
Conclusion
In India, The Shop Act Licence Registration is mandatory to have while operating day to day business. This license is required during all the stages of Business registration. You must have this license for your Business if you want to operate without getting into any legal trouble.
I hope you will find this guide helpful. Here, we have explained about different registration such as Shop Act License, MSME, GST, and Labour in India.
Click here – STP Full Form And Meaning
