The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganised sector and provides a list of obligations for every employer. It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theaters and other places of public amusement or entertainments. Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.
What is Shop & Establishment Registration?
The Shop and Establishment Act is enforced by the state and regulates conditions of work and employment in shops and commercial establishments.
Working hours and holidays
Wage payments
Employment conditions
Child labor prohibition
Record-keeping and notice requirements
complete account of the system
Who Needs It?
Shops and retail stores
Service providers (freelancers, consultants, etc.)
Warehouses and godowns
IT and software companies
Restaurants, cafes, and hotels
Any commercial office or establishment
Benefits of Shop & Establishment Registration:
Legal recognition of your business
Mandatory for obtaining other business licenses (like trade license, GST, etc.)
Helps in opening a business bank account
Useful for loan applications and government tenders
Ensures compliance with labor laws
Documents Required for Form 3 / Registration:
PAN Card of proprietor or business
Aadhaar Card of proprietor/partner
Proof of business address (electricity bill, rent agreement, etc.)
