License or Registration of Shop and Commercial Establishment is required under the Shop and Establishment Act, and it comes under the Department of Labour of the State Government. In India, most of the businesses like cafes, hotels, shops, restaurants, etc., are controlled under the requirements of the Shop and Establishment Act.
The primary objective of the Shop and Establishment Act is to provide proper working conditions to the labors and take care of their wages and rights. Also, below you can check who can take License or Registration of Shop and Commercial Establishment in India:
- Service Centers.
- Entertainment houses.
- Amusement Parks.
- Warehouses, Godowns, and Store-rooms.
- Hotels, shops, and restaurants.
- Wholesalers or the retailer’s shops and establishments.
Under the Shop and Establishment Act, the rules and regulation may vary from state to state, but the primary aim remains the same.
Why is it Compulsory to take Registration of Shop and Commercial Establishment in India?
Generally, for opening a current bank account in the name of the designated bank business, individual getting registration under the Shop and Establishment Act. Moreover, opening a bank account, it is more noteworthy to have a shops and establishment license; otherwise, the authorized inspector inspecting the business premises may cause needless problems for the said businessman.
Documents Required for Registration of Shop and Commercial Establishment License
Following are some important documents required to take registration of Shop and Commercial Establishment:
- Submit the identity proof of the employer such as Aadhar Card, PAN Card, Voter’s ID, Driving License, and Passport.
- Submit the latest passport-sized photograph of the employer.
- In the case of rented premises, submit a copy of the Lease Deed or Rent Agreement.
- Submit any latest utility bill such as electricity bill, water bill, telephone bill, gas bill of the working premises.
- Also, submit a photo of Shop or Establishment.
Following are some other documents required as per the Establishment or business:
- Submit a list of Trustees in the case of a Trust
- Submit MOA or Memorandum of Association
- Submit a list of a number of Chairman and Members in case of a Co-operative Society
- Submit a Partnership Deed along with all the essential information regarding the name of the firm, name, and signature of all the partners with the share percentage of each partner
- Submit a copy of the permission granted by the Reserve Bank of India
- Submit a copy of COI (Certificate of Incorporation) issued
- Copy of the Certificate of Registration (CoR) which is granted by the Charity Commissioner
- IEC Certificate or Import Export Code Certificate
- No Objection Certificate (NOC) issued by the Police Department for the opening of a Cybercafé and also submit a NOC issued by the Municipal Corporation for the Flour and Masala Mill opening
- Submit a certificate issued by the SECI to the Share Broker
- RTO Transportation Permit
- A Resolution showing the list of proposed directors
- A license issued by the Department of Police for initial of security services
The Registration of Shop and Commercial Establishment is a license that offers a company with a legal identification or recognition in terms of carrying on a profession, trade, business.
This License makes a company or entity a registered business establishment in the laws’ eyes, and they don’t face any problem at the time of inspections or any government surveys.