Registration under Shop & Establishment Act

Introduction

Whenever any person is intending to enter into business world he needs to take care lots of things which include preparing business plan, product/ service types, beside this, list of laws which are applicable to the businessman is also needs to be taken care.

One of the most important laws which are applicable to business man,irrespective of form of Business i.e. Proprietorship Firm, Limited Liability Partnership, Company etc., is Shop and Establishment Act, enacted by every state of india with the objective to give some minimum benefits and relief to the vast unorganized sector of employees, employed in any Shops and Establishments.

Now let’s discuss the applicability and requirements of the Delhi Shop and Establishment Act, 1954 in depth:

1. Which types of businesses falls under the category of registration under Delhi Shop and Establishment Act, 1954
   • Commercial Establishment: means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, contractors and auditors establishments, quarries and mines not governed by the Mines Act, 1952 (35 of 1952), educational or other institutions run for private gain, and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on, but does not include a shop or a factory registered under the Factories Act, 1948 (43 of 1948), or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment;
   • Establishment: means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies.
   • Shop: means any premises where goods are sold either by retail or wholesale or where services are rendered to customers, and includes an office, a store-room, godown, warehouse or workhouse or work place, whether in the same premises or otherwise, used in or in connection with such trade or business but does not include a factory or a commercial establishment.
2. Time period within which Registration is required: Every shop and establishment are compulsory required to register itself under this within 90 days from the date on which the establishment commences the work to the chief Inspector.
3. Provisions needs to be followed and complied under this Act
   • Provisions for Working hours for an Adult per day and week.
   • Provisions for rest interval, spread-over, opening and closing hours, closed days, national and religious holidays, overtime work.
   • Provisions for annual leave include inter alia, privilege leaves, causal leaves and sick leaves, maternity leave, etc.
   • Provisions for appointment and termination of service of an employee.
     Provisions for precautions against fire and accident
   • Maintenance of registers and records and display of notices.
4. What are the documents required for registration under this Act
   • Company Name
   • Nature of Business
   • Pan Card of the _________ (Company, Firm, LLP etc.)
   • Pan Card of the __________ (Director, Partner, Individual)
   • Partnership Deed, in case of partnership firm and MOA and AOA in case of Company
   • ID Proof of the _________ (Partners, Directors, LLP Designated Partners) (Voters Id / Driving License / Passport)
   • Address proof of the business (Rent agreement / Sale Deed copy / Passport / Corporation / Tax Receipt)
   • Electricity  Bill of the business if it is own property
   • NOC Required if it is rented
   • Number of Employee (Male and Female)
5. Penalty: If any shop or establishment does no get itself registered under this act, the proprietor, the employer or the manager thereof as the case may be shall, on conviction, be punished with fine which shall not be less than twenty-five rupees and which may extend to two hundred and fifty rupees.