• According to the Shops and Establishments Act, the term establishment means a shop or a commercial establishment. These establishments include commercial spaces, residential hotels, restaurants, theatres or other places of public amusement or entertainment.
• Shop means any premises where goods are sold, either by retail, wholesale, or services are rendered to customers. This could include an office a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business.
• According to the act, a commercial establishment means a premise where any trade, business, profession or any work related with it is undertaken.
SHOP & ESTABLISHMENT REGISTRATION:
Establishment Registration means the registration of the facilities used in the process of formulating, manufacturing, developing, packaging, marketing, distributing and selling the Products, as required under the Act and, if required by Law, the DEA and any applicable Governmental Authority.
The Shops and Establishment Act registration issued under the Shops and Establishment Act is mandatory for all persons, companies and legal entities planning to set up a commercial establishment or shop.
A shop or establishment registration certificate gives businesses the right to conduct work in a particular state and to open a current business bank account. With this certificate, you can quickly round out state government inspections on licences and proper working of the business.
WHAT TO KNOW ABOUT THE SHOPS AND ESTABLISHMENTS ACT REGISTRATION?
The Shops and Establishments Act registration is a mandatory requirement for all businesses which operate as an establishment or shop. Hence, business owners must update their license if any changes are made to the establishment. In case of closure, or renewal, an application for the same must be made within 15 days of the said change or closure. Any business that has an office or establishment, even if run by sole proprietors or freelancers will require this license when trying to raise investment through loans or from venture capitals. The license helps prove the validity and credibility of the establishment, making it an integral part of running any business. The registration process takes around ten days for completion, following which the business receives a hard copy of the registration certificate. However, the process might take around 20 days in major cities due to a large number of applications.
WHEN TO OBTAIN REGISTRATION:
Any individual who plans on starting a commercial establishment that falls under the purview of the Act must file for registration within 30 days of commencing their business. This registration is mandatory for several reasons, including being necessary for opening a current account in a bank. The Shops and Establishments Act license works as an essential license or proof of business that companies need to apply for other registrations and loans.
WHY REGISTER UNDER THE SHOPS AND ESTABLISHMENTS ACT?
The primary objective of such a registration is to secure uniform benefits for employees serving different establishments across the country. The Act also regulates work hours, payment of wages, terms of service, and holidays that employees receive. It also lays down guidelines regarding the conditions of work, the number of people employed and helps in ensuring their wellness. The registration acts as a basic license that helps in securing further registrations and certifications. All commercial establishments, except those that fall under the purview of the Factories Act, 1948, must register under this Act. However, since the Act is a state-specific regulation, each state has its laws and guidelines regarding operating such establishments.
WHO NEEDS TO REGISTER UNDER THE SHOPS AND ESTABLISHMENTS ACT?
Registration under this act is mandatory for all businesses that operate from any establishment or shop in Telangana. In essence, any shop or establishment that carries on business in notified areas of trade, industry, or services within the state of Telangana needs to register under the act.
Moreover, all business organizations such as malls, supermarkets, shops, hotels, food houses, local restaurants, city theatres, and other commercial establishments are also regulated by this Act, and hence require a Shops and Establishments registration as per the law.
Additionally, every employer in Telangana must renew their licence within 30 days of its expiry, failure to do so will result in the levying of a hefty penalty
BENEFITS OF OBTAINING A SHOPS AND ESTABLISHMENTS LICENCE:
A Shops and Establishments Act licence is useful for –
• Opening a current account with ease
• Registering for GST conveniently
• Availing tenders from the state department
• Inspiring trust in creditors/suppliers and other stakeholders
• Getting loans sanctioned from banks and other financial institutions.
HOW TO APPLY FOR THE SHOPS AND ESTABLISHMENTS LICENSE
DOCUMENTS REQUIRED FOR SHOP AND ESTABLISHMENT REGISTRATION
It is very important to keep the following documents handy before you start the registration process.
• Form No-I (application form for registration)
• Photograph of the shop or establishment’s name board in Telugu
• List of employees
• A copy of the rental or sale deed of the shop or establishment
• Owner’s ID proof and a passport-size photo
• Certificate of incorporation
• MoA and AoA, in the case of companies.
TIME REQUIRED FOR SHOP AND ESTABLISHMENT REGISTRATION
The process of shops and establishments Registration will be completed in 1 Working day.