Shop Act Licence Registration in India is a mandatory compliance for businesses operating shops, offices, commercial establishments, hotels, restaurants, and service centers. It is governed by the respective Shops and Establishments Act of each state and regulates working hours, employee rights, wages, and conditions of work. In this Saving Mantra guide, we explain what Shop Act registration is and provide a step-by-step process for Shop Act Licence Registration in India in a simple and practical manner.
What is Shop Act Licence?
A Shop Act Licence (also called Shops and Establishments Registration Certificate) is a legal permit issued by the state labour department. It acts as proof of business existence and is often required for opening bank accounts, GST registration, and other statutory registrations.
Who Needs Shop Act Registration?
Shop Act registration is required for:
- Shops and retail outlets
- Offices and commercial establishments
- Hotels, restaurants, cafes, and eateries
- Service providers and professionals
- Online businesses with physical offices
Benefits of Shop Act Licence Registration
- Legal recognition of business
- Mandatory compliance with labour laws
- Required for bank account opening and GST registration
- Proof of business address
- Improves business credibility
- Smooth inspections and audits
Step-by-Step Process for Shop Act Licence Registration in India
Step 1: Identify Applicable State Law
Shop Act rules are state-specific. Identify the Shops and Establishments Act applicable in your state.
Step 2: Determine Business Details
Finalize details such as business name, address, nature of activity, and number of employees.
Step 3: Collect Required Documents
Gather identity proof, address proof, and business-related documents before applying.
Step 4: Apply Online on State Labour Portal
Submit the Shop Act registration application on the respective state labour department portal.
Step 5: Upload Documents
Upload scanned copies of required documents in the prescribed format.
Step 6: Pay Registration Fees
Pay the Shop Act registration fee online. Fees vary based on state and number of employees.
Step 7: Verification by Department
The labour department verifies the application and may conduct inspection if required.
Step 8: Issue of Shop Act Licence
After approval, the Shop Act Licence / Registration Certificate is issued digitally.
Documents Required for Shop Act Licence Registration
- PAN Card of proprietor/firm/company
- Aadhaar Card of owner/authorized signatory
- Address proof of business premises
- Rent agreement or ownership proof
- Passport-size photograph
- Employee details (if applicable)
(Documents may vary by state)
Validity and Renewal of Shop Act Licence
- Validity depends on state laws (1–10 years in most states)
- Renewal must be done before expiry to avoid penalties
Post Shop Act Registration Compliance
- Display Shop Act certificate at workplace
- Maintain employee attendance and wage records
- Follow working hours and leave rules
- Timely renewal of licence
Penalty for Non-Registration
Failure to obtain Shop Act Licence may attract penalties, fines, or legal action under the respective state law.
Why Choose Saving Mantra for Shop Act Licence Registration?
- State-wise expert registration support
- Quick and hassle-free application
- Transparent and affordable pricing
- Error-free documentation
- End-to-end compliance assistance
Conclusion
Shop Act Licence Registration in India is a fundamental compliance for running a lawful business establishment. By following the correct step-by-step Shop Act registration process, businesses can operate smoothly and meet labour law requirements. Saving Mantra ensures a simple, fast, and professional Shop Act registration experience.