
Shop Act License
Any person with an intention to establish a business must surely have heard the term “Shop Act License”. So what exactly is it? Commonly known as Shop Act License is a License provided by the government regulated under the Act of Shop and Establishment Act. It basically is a license to carry out any particular enterprise or business in the state. Every state has its own separate department for issuing the license and the rules as to the license may vary from state to state. The Shop Act license is one of the essential documents required in the whole process of business establishment. Therefore any person who wants to start a business or establishment must have a Shop and Establishment License.
Who Should Get a Shop Act License?
All the entities defined under the definition of “Shop” in the Act must get the Shop Act License. These include offices, go-downs, warehouses, and storerooms used for the purpose of carrying out the said business. Basically, all premises where the selling and purchasing of goods take place or where services are rendered to customers.
Establishments also include all workplaces where persons are employed for office work. This includes commercial spaces, banking, trading, or insurance establishments, and administrative services. It also includes hotels, boarding, cafes, restaurants, theatres, or other public entertainment or amusement places.
Process for Obtaining Shop Act License
The process of obtaining a Shop Act license is available both online and offline. It may vary from state to state. Any person seeking such a license should log into their respective State’s Labour Department website. For example, in Maharashtra, the website ismahakamgar.maharashtra.gov.in.
For offline application, the applicant must fill out the registration form and submit it to the Chief Inspector of the relevant area, along with the prescribed fee. If the application is correctly filled, the Chief Inspector will issue the Shop Act License.
For online application, the applicant must fill in the application through the website, upload the required documents, and pay the prescribed fee. This fee and process may differ from state to state. The entire process depends on accurate documentation and can be time-consuming. It is highly recommended to consult a financial advisor or consultant before applying.
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Documents Required for Shop Act License
The following are the documents required for obtaining a Shop Act License:
- Shop or business establishment’s address proof
- PAN Card of the proprietor
- ID proof of the proprietor
- Details of the employees
- Additional licenses required for the said business (e.g., FSSAI license in case of food industry-related businesses)
- Payment challan