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Shop and Establishment Registration is covered under Shop and Establishment Act which is under the State Legislation and each state has its own rules and regulations for the same. Rules for registration under Shop and Establishment Act are framed by the respective state governments due to which they differ from one state to another and the rules of that state need to be followed in which the enterprise is located/proposed to be located.
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The registration under this act helps in getting Recognized as a Registered Business Unit.
It provides ease of getting a Current Account opened with the Bank. Many banks consider this registration for the current account opening in the name of the firm.
Shop and Establishment Act is applicable all over India. The main objective of the Act is to protect the rights of both the employer and the employee.
It Increases the trust of the customers on account of a certified registration.
It regulates payment of wages, hours of work, terms of service, wages for holidays, leave policy, work conditions, overtime work, intervals for meal and rest, prohibition for the employment of children.
There is no separate registration for sole proprietorship. Thus, sole proprietors can take registration under Shop & Establishment to give legal identity to their business.
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The process of Registration under Shop and Establishment Act differs from state to state, a general process that needs to be followed is:
Details pertaining to the Establishment need to be filled in Form 1 such as Name, Classification, Category and Address of Establishment.
Details pertaining to the employees also need to be filled.
Form needs to be submitted with various documents which serve as a proof in relation to the authenticity of the work carried on by the establishment.
On receipt of the application, the inspector needs to check the details, may visit the establishment for verification, and on satisfaction, provide a Registration Certificate under the Act.
All the commercial establishments such as hotels and eateries, amusement parks, theatres, restaurants, entertainment houses etc. are covered under the Act to obtain registration.
Application for registration under the Act needs to be made within 30 days of the commencement of a commercial establishment or a shop. The non-registration will attract the penalties under the Shop & Establishment Act. The penalty amount varies from state to state.
Passport size photograph of the Applicant.
Photo of the Shop/Establishment with the Owner.
Name of the Establishment.
PAN of the Establishment.
Address Proof of the Establishment.
Rent Agreement, if the property is rented.
Details of Employees, their wage rates, and the company.
List of Management Employees and Directors, if applicable.
Copy of ID Proof of the Owner.
Partnership deed, MOA/AOA of the entity.
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