Overview of Shops & Establishment Registration

When employing individuals, whether full-time, casual or on contract, entity owners must register under the Shops and Establishment Act, also known as labour law.

The registration application should be filed with the labour department having jurisdiction over the registered office and any other business location with employees.

It's essential to apply within 30 days of establishing the business location.

This registration ensures compliance with labour regulations and protects the rights of employees.

Frequently asked questions

Once after taking the registration how many days the shops and establishment license is valid?

After obtaining the shops and establishment license, it remains valid for five years (duration may vary by state). This license ensures compliance and legal operation of your business establishment.

What are the records to be maintained under the Shops and Establishment Act?

Under the Shop and Establishment Act, businesses must obtain approval from the Department of Labor and maintain accurate registers detailing employment specifics, including fines, deductions, advances, salaries, and holidays. These requirements may vary depending on the state.

I’m a newly incorporated company and all of my employees are working from home do I still need to apply for the Shops and Establishment Act?

Even for employees working from home, obtaining this registration is necessary.

Do startups have to follow the Shops and Establishment Act?

Whether you're a startup or an established business with a shop, office, or employees, obtaining a shop and establishment license is a requirement.