Delhi Shops and Establishment Registration: Fees, Procedure,and Documents

Updated on July 06, 2024 06:09:33 PM

Every shop and establishment in India has to obtain the registration certificate within 90 days of commencement of business. For more clarity about shops and establishment,

"Shops are defined as premises where goods are sold either by retail or wholesale or where a service is rendered to customers and includes an office, a store-room, godown, warehouse or workhouse or workplace."

"Establishments are defined as a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment." If someone who satisfies the above mentioned definitions and fall under shop and establishment category, then they need to obtain the registration license for their shop or establishment. Read to know more about the whole procedure, documents required, and fees for Shops and Establishment Registration in Delhi

Shop And Establishment License
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What does Shops and Establishment Registration mean?

Every owner of an establishment needs to obtain a registration certificate for establishing and operating a commercial establishment.

The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment. Whether a business is small or big you need to register your shop under a Shop and Establishment act. Every Indian state has enacted certain rules and regulations with regard to conditions of work.

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Benefits

Registering the shop and establishment comes with many added benefits in itself. Here some of the benefits you can avail on registering for shop and establishment act license is given below:

  1. Proof of Legal Entity: This certificate gives a legal right for the shops and establishment to operate in the particular region.
  2. Business Bank Account: For opening a business account in any bank, the shop and establishment registration certificate can be provided as a proof.
  3. Government Benefits: The Shops & Establishment Registration Certificate enables easy availment of various government benefits. Only those who have registered themselves under shops and establishment Act can avail the government benefits.
  4. Smooth Inspections: The MCD and the state government authorities conduct regular inspections to check the proper functioning of the shops. They do these inspections to validate the operation under the laws and regulations of the place. Having Shops and Establishment registration certificates can help in smoother and quicker inspection.
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Time Limitation

Every shop and establishment in Delhi needs to apply for the registration within 90 days of the commencement of the establishment.

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Shops and Establishment Act,1954

The Shops and Establishment Act,1954 (also known as Delhi Shops Act,1954) amend and consolidate the law relating to the regulation of hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments for public entertainment or amusement and other establishments and to provide for certain matters connected therewith.

According to the Act, an owner of a shop or a commercial establishment is required to comply with the provisions relating to;

  1. Opening and Closing hours of the shops or establishment,
  2. Working hours for its employees,
  3. Holidays,
  4. Employment of women and children and
  5. Health and safety of employees.

This law is applicable to all shops and commercial establishments from which any business, trade, or profession is carried on.

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Penalties

It is mandatory for all the establishments under the Act to obtain registration and follow all the rules and regulations prescribed under the same. In case of any failure in obtaining registration and following the rules and regulations of the Act, the establishment would be liable to pay the penalty. The penalty amount would vary from state to state.

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Shops and Establishment Registration Fees in Delhi

Likewise the penalties for not registering under shops and establishment licenses, the fees also vary state-to-state. In Delhi, the cost for registering under Shops and Establishment act with Professional Utilities is ₹999 only (excluding government charges).

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Documents Required for Shops and Establishment Registration

The documents that one would need at the time of applying for the shop and establishment license are given below:

Documents Required Proprietorship Partnership Company
PAN Card Proprietor Partners All Directors and Company
ID Proof Proprietor Partners Directors
Address Proof Proprietor Partners Directors
Details of Employees Yes Yes Yes

{Note: Some additional documentation is also needed in some specific cases like

  1. Photograph of the Shop/Establishment
  2. Certificate of Incorporation, MOA & AOA of Company / LLP Agreement of LLP}
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Procedure for Shops and Establishment Registration

  1. Step 1. Documentation: All the documents that you need to upload are stated above. You should possess all those documents at the time of registration.
  2. Step 2. Form-A fillup: The next step is filing Form-A through the government website. The form will include information related to your shop or establishment like name of establishment, category of establishment (shop, residential hotel, restaurant, and others), and nature of business.
  3. Step 3. Payment: After filing the form, you need to pay the respective fee for the registration which depends on the state and may vary according to that.
  4. Step 4. Verification: A Chief officer reviews the application after completion of fee payment.
  5. Step 5. Issuance of Certificate: If the Chief officer validates the application and approves, then the registration certificate for shops and establishment is issued.
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Frequently Asked Questions (FAQs)

What are the rest and closed days?

Every Shops and Establishments shall remain closed for one day in a week.

What are the working hours for employees of shops or establishments?

For not more than nine hours on any day or 48 hours in any week (Section 8 ).

What are the different types of leave available to an employee under the Act?

Every person employed in an establishment shall be entitled (a) to 15 days of privilege leave for one year of service, which can be accumulated to 45 days. (b) To 12 days of sickness or casual in a year. (Section.22)

Whether children are permitted to work in Shops or Establishments?

No, children of 12 years and below are prohibited to work in shops under (Sec. 12).

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