A Shop Act License is a type of legal authorization that grants us permission to conduct business in a specific location. This license is mandatory if you operate out of a physical shop or office. It provides evidence that a particular transaction was carried out at that location.
In India, the state promulgates the Shop and Establishment Act, which varies slightly from state to state. However, according to the Act, each state’s Shop & Establishments Act applies to all shops and commercial establishments in that state.
In Maharashtra’s regional language, for instance, the Shop and Establishment Act is referred to as “Gumasta”Under this act, every shop must be registered. The Shop Act’s goals are as follows:
In the unorganized sector of employment, i.e. shops and establishments, provide statutory obligations and rights to employees and employers.
In retail establishments, residential hotels, dining establishments, theaters, and other places of public entertainment, regulate the working conditions of employees.
If a commercial or retail establishment wishes to begin operations, it must submit an application for a registration for shop and establishment to the Chief Inspector within the allotted time. The employer’s name, the address of the establishment, the establishment’s name, its category, the number of employees, and any other pertinent information requested must be included in the prescribed Shop Act license application.
The shop or commercial establishment will be registered after the application is submitted and reviewed by the Chief Inspector, and the occupier will receive a registration certificate. In accordance with the act, the Shop Act Registration certificate must be prominently displayed at the shop or commercial establishment and renewed on a regular basis.
Within fifteen days of closing, you must notify the Chief Inspector in writing of your intention to close the shop or any other commercial establishment. After reviewing the request for closure, the Chief Inspector will cancel the registration certificate and remove the shop or commercial establishment from the register.
To obtain a Shop Act/Gumasta License, a number of different documents are required.
- Aadhar card
- PAN Card
- An address proof such as an owner’s no-occupancy certificate or electricity bill
- Application letter in the prescribed format to the Municipal Corporation of Greater Mumbai
- Authority Letter for Business
- Form-A, which is an application for Registration within 30 days of starting any work to the inspector of the area
- Government Prescribed Fees for a partnership Firm
- Partnership Deed
- Pan Card of the PARTNERSHIP Firm
- Partner’s ID Proof and address Proof
The Shop and Establishment Act is governed by the Department of Labor and The act not only regulates the operation of businesses, but also societies, charitable trusts, printing companies, profit-driven educational institutions, and locations where stock or share brokerage, insurance, banking, and other financial services are carried out. The terms “working hours,” “rest interval,” “opening and closing hours,” “closed days”, are few of the parameters governed under this act.
In order to protect workers’ rights and prevent them from being exploited by owners, Shop Act Registration sets certain minimum standards. It has established the following guidelines and guidelines:
Hours of work, breaks for meals and breaks for rest, no children or minors allowed to work, and no women or minors allowed to work. Closed days, holidays, and wages for holidays. Time and conditions for paying wages. Deductions from wages. Leave policy. Dismissal. Cleanliness. Lighting and ventilation. Fire safety. Record keeping.