Obtaining Shops and Establishment Licence

Shops and Establishment Act governs the working conditions and rights of workers engaged in the unorganized sector. This includes wage payments, leaves and holidays, work hours, etc. Shop/Trade licenses are State subject and the rules differ accordingly.

This license is mandatory for all business entities, even if you are working from home. It covers - shops, commercial establishments, restaurant, hotel, theatre, public amusement, and retail trade/business. Every establishment needs to register itself within 30 days of commencement.

Every establishment needs to register itself within 30 days of commencement.

i. In Delhi, registration can be done online via the Labor Department website here.

ii. For Mumbai click here.

Similarly, every state follows their specific registration process. You can know more by going to the Labour department of your respective State Government. This licence will be required to be renewed annually or for any other period specified.

In general, following documents/information is required in the registration process-

1. Proof of establishment – any lease deed, Electricity / Telephone bills, etc.

2. PAN card of proprietor

3. Address proof of proprietor

4. Details of employees / Manager of the establishment

Fees for registration will also differ from State to State. Some base the charges on the type of establishment while other base the same on the number of workers employed. For example, annual fees charged in Maharashtra is Rs. 120 for establishment having no employees to Rs. 5400 for establishments having more than 100 employees.