Shops and Commercial Establishments Registration
Updated: Aug 20, 2021
Shop and Establishment Registration is mandatory for every establishment whereas Factories Act registration is not compulsory. Every business irrespective of the nature of structure needs to take this registration.
There are some exemptions to this rule.
Shops and Commercial Establishments Act and Rules are State-specific labor law regulations that provide for the regulation of conditions of work and employment in shops and commercial establishments in a State.
These regulations cover conditions of work and employment such as daily and weekly hours of work of an employee, extra wages for overtime work, spread over of daily work time, the interval for rest during work hours, opening and closing hours, weekly holidays, annual leave with wages, wages during the leave period, prohibition of employment of children, prohibition of employment of women and young persons during the night. Every state in India has its own regulations on the conditions of employment.
Within 30 days from the date of commencement of work the employer of every establishment shall register under this act and in case of closure, the same has to be communicated to the authorities within 15 days from the closing of the establishment. An application must be submitted to the labor Inspector of the area concerned with the requisite fee along with the following details:
the name and registration details of the establishment
the postal address of the establishment;
the name of the employer and the manager, if any;
such other particulars as may be prescribed by the respective state.
After verification of the correctness of the details and documents submitted, the Inspector shall register the establishment and shall issue a registration certificate to the employer. The registration certificate issued by the Inspector of Shops and Commercial Establishments shall be prominently displayed at the establishment. The registration certificate has to be renewed periodically as per the respective state regulations.