Importance of Shops & Establishments Act

Falling under the unorganised division, The Shops and Establishments Act standardizes the settings and conditions of work, classifies the responsibilities for employers and offers a series of rights employees are entitled to from their employers. This act is applicable to nationwide shops, every profit-making establishments, hotels, cafes, eating circles and joints, restaurants, movie theatres and any place of public amusement or pleasure. It is mandatory for any and every shop and establishment to register oneself within 30 days of the establishment under the act with or without employees.

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4 Important Aspects about Shops & Establishments Act One Should Know

The Primary Goals of the Shops & Establishments Act:

One of the main reason for The Shops & Establishment Act to have come to force is to have systematic perks for all employees employed in various establishments, theatres or places of amusement.​

The Guidelines of the Shop and Establishment Act:

The Shop & Establishment act forms the guidelines for employers to strictly adhere to the number of working hours daily and every week, the stipulated time for opening and closing the shop, adhering to national and religious leaves, setting regulations for the recruitment of children and women, maternity leaves, sick and casual leaves, regulations for recruitment and termination of service, regulating annual holidays, upkeep of records & registers and presentation of announcements for the employers and the employees.​

Records to be Maintained under the Shops and Establishment Act:

All businesses have to ask for the validation or the approval of the Department of labour and keep abreast on the specifics of recruitment, pay, deductions, leaves etc under the Shops and Establishment Act. Proof of yearly leaves, a total count of employees should be surrendered to the MC also known as the Municipal Corporation, annually. However, the requisites differ from one state to the state other.

License Requirement for the Shops and Establishments Act:

The Shops and Establishment Act license is a mandatory requirement and therefore all shops and establishments should sign up under the act within 30 days from the date of beginning. Also, this registration is the primary license which is a requirement for other license registrations. To acquire the shops and establishment license registration, PAN card of the shop owner or the establishment itself, a photocopy of the rental agreement or sale deed and information about of the employees is mandatory.

What You Need To Know

Must Have by All

Registration is a must for all establishment and business individuals, including proprietors working and running a business from their homes. A registration such as this comes in handy when the proprietor wants to apply for a loan, or create a current bank account.

Do Business From Home

Proprietors who wish to run their business or establishment from home can do so without having a physical store. However, such business also require this registration.

Shops & Establishment Act Process


For the registration, PAN cards, proof of address of the directors, partners and proprietors and information of the staff need to be sent in.​


The registration will be filed on your behalf at the regional Municipal Corporation. We will do the entire process for you, hence you need not physically appear for anything.​


Within a span of a week, you will be acknowledged on the process initiation. If in any case, the inspector calls for additional documents to be submitted, we will get back to you on the same. Once all the documents are submitted, the process will be completed and closed. Your registration hard copy will be issued anywhere between 10 days if in the metro cities but would take 15 to 20 days if applied from any other part of India.