When an entity starts to employ people may be as casual workers, full-time employees, contract-based etc to regulate the work conditions and ensure the workers’ rights are protected then there is a need to get Shop Establishment Certificate. It is also called Shop License informally.

The Shop Establishment registration is a state -based registration required while establishing a hotel, shop, or any commercial place. It is relevant for every new shop/establishment to get it registered under the Shops and Establishment Act. You can get a License within 30 days from the commencement of the work. The validity of Shop Establishment License is for one year and it can be renewed every year

Why shop establishment is mandatory to register?

Generally, individuals register under Shop & Establishment to open the current account with the bank as a bank does not allow to open a current account without at least two documentary proofs such as service tax registration, Import-export code and VAT registration etc. Apart from opening a bank account, it is more important to have this license otherwise inspector inspecting the business premises may cause unnecessary problems for the businessman.

Advantages of the Shop & Establishment Registration-

It establishes a current account: It can help an individual to open the current account with the bank by getting this certificate from Chartered Accountant.

Smooth inspector visits: Any inspector from the state government or local municipality visits the premises of your office, then you can easily flow from his trap as you are already registered.

No Compliance: It does not require any compliance after registration. Hence, there will be only a one-time cost.

Registrations: It is online and the whole process can be completed within two days only.