Shop and Establishment License – An Essential Business Registration in India
Mandatory registration under the Shop and Establishment Act for shops, commercial establishments, restaurants, offices and other workplaces, ensuring regulated work conditions and employee protections across India.
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Overview of Shop and Establishment License
The Shop and Establishment License regulates working conditions, wages, holidays and employee rights in shops, cafes, restaurants, offices and other establishments under the respective State Shop and Establishment Acts. While the core provisions are uniform, specific rules vary by state.
Applicability
An "establishment" includes shops, commercial establishments, residential hotels, restaurants, theatres, warehouses and any other entity defined by the State Government. A "shop" covers premises where goods are sold or services provided, including godowns and non‑factory workplaces.
Key Benefits of Obtaining a Shop and Establishment License
1. Legal Recognition: Grants your business a formal legal identity. 2. Business Address Proof: Validates your establishment’s address for regulatory use. 3. Bank Account Opening: Required by banks to open current accounts in the business name. 4. Investment & Funding: Enhances credibility for loans and investor funding. 5. Access to Government Schemes: Enables eligibility for state and central incentives. 6. Quick Online Process: Many states offer fully digital registration for faster compliance.
1. Documents Required for Shop and Establishment License
Basic Documents:
● Employer identity proof (Aadhar, PAN, Voter ID, Driving License)
● Employer passport‑size photo
● Cancelled cheque or bank statement with notarized affidavit
● Photograph of premises
● Rent agreement or utility bill (electricity/water/property tax)
Additional (By Entity Type):
● Companies: Certificate of Incorporation, MOA & AOA
● Partnership: Partnership Deed with partner details
● Trusts: List of trustees
● Co‑operative Societies: List of members & chairman details
Offline Registration Procedure
1. Submit prescribed application form to Chief Inspector of Labour within 30 days of starting operations, including employer name, establishment address, category and employee count.
2. Inspector verifies and issues the License certificate for display at premises.
3. Notify Chief Inspector in writing 15 days prior to permanent closure to cancel the registration.
Online Registration Procedure
1. Visit the state Labour Department portal and register with email/mobile.
2. Create establishment profile: business name, employer details, employee count, address, PAN.
3. Fill Shop & Establishment Registration – Form A and upload all supporting documents.
4. Pay online registration fees via portal.
5. Track application status under “Under Scrutiny.”
6. Download the e‑License once approved.
DoStartup Process for Securing a Shop and Establishment License
Select a service plan and connect with our experts.
Share your business details and specific requirements.
Upload required documents securely via our platform.
We prepare and verify your application for eligibility.
We handle filing, inspections and liaison with the labour department.
Receive your digital or physical License delivered to your doorstep.