The Shops and Establishment Act is a state legislation act and each state has framed its own rules for the Act. It is a state based license. Applicable if you are opening a shop or commercial establishment.
The Act has provisions for compulsory registration of all Shops & Establishments, issuance of appointment letters to the employees, regular payment of wages to the employees along with statutory leave, holidays, and specific working hours, prescribed opening and closing hours of the Shops & Establishments, and recovery of unpaid or illegally deducted wages. This Act is applicable to all persons employed in an establishment with or without wages, except the members of the employers’ family.
This registration helps in maintaining and regulating conditions of work and employment. This is issued per premises and does not have a centralised registration concept. Annual returns (in most cases) need to be filed. In few states the renewals are also done on annual basis. Specified records and registers need to be maintained.
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