It cannot be denied as a matter of fact that certain licenses as approved by the government must be acquired by the individual in case the business activity involves having to deal with any food item.
It is deemed crucial that the FSSAI License should be procured by every possible food business operator so that the business can operate smoothly in the eyes of law. Shops and establishment certificates are equally important to be obtained for the business to be established.
People who are somehow engaged in the marketing and distribution of the food commodities must invest in having a commercial space so that the goods can be stored properly and transferred from time to time from one possible place to another.
Owing to the presence of a storage facility, the business entity must avail the shops and establishment certificate. Further, the application for the shops and establishment certificate can be made in accordance with the number of employees that work under such an entity.
It must be highlighted that such a certificate has to be acquired on a mandatory basis by every establishment that wishes to operate on a commercial basis. After the application has been duly filed then it would normally take a time period of seven to ten days for the certificate to be issued.
Having commenced the business, the shops and establishment certificate should be obtained within the time frame of one month. Besides FBOs, relevant labor licenses should be obtained by the entities that work on a commercial basis. This would enable the entity to open a bank account so that the business can facilitate the transactions.
Apart from the things mentioned above, the business entity would be eligible to get hold of the license such that the business will have no problem in operating in the desired location.
With respect to food business operators that function from home are very well eligible to obt
ain the shops and establishment certificate. Along with this, all other operators that function through an outlet equally fall within the eligibility criteria wherein they too can obtain such a license.
Aspects Related To Registration under the Shop and Establishment Act
Shop and Establishment Act entails variation with respect to different states in India. However, when it comes to the general provisions, they share similarities in most cases. The Labor Department of each state looks after the regulation of the Shop and Establishment Act.
The said Act monitors the regulation of all the commercial establishments within the confinement of each state. The registration is granted as provisioned under the Act by the respective state, which entails slight differences as ranging from state to state.
As per the definition set forth under the Act, shops are construed to be the premises wherein the goods are sold either by way of retail or can even be on a wholesale basis. If some kind of services are extended to the customers, then this would also be a part of the shop’s definition.
The term shops is inclusive of the storerooms, and other warehouses which can be seen as being the extension of the premises of any shop.
On the other hand, any establishment would be considered to be of a commercial nature if it involves any banking or trading activities. The services can also be of administrative nature wherein there is the employment of people for carrying out the official work.
Commercial establishments can include hotel chains or some other place that offers amusement. However, the shop and establishment Act does not include under its realm, the factories or industries. These entities are regulated under their separate Act.
Shops And Establishment Act: What Does It Seek To Regulate?
Given below are some of the matters that are regulated under the Act:
- In the first place, the working hours form a crucial aspect that is governed under the Act along with the annual leaves and also the weekly holidays,
- Everything related to the payment of wages is well regulated as given under the Act. Besides this, the compensation-related aspect is also looked after by the Act.
- Under the Act there is strict prohibition in case of employment of the children.
- Also with respect to women and children, there is prohibition on their employment during the night shifts.
- The procedure related to inspection is governed by the said Act
- Any interval for rest.
- There is strict regulation related to the opening hours as well as the closing hours.
- Every record that keeps track of the employees, is well under regulation.
- All the provisions that talk about dismissal are regulated under the Act.
Shops and Establishment Certificate: Counting On All the Benefits It Has In-Store
Shops and establishment licenses are indeed an important requirement which must be fetched by all the food business operators that seek to deal in food items. Keeping in mind the employee capacity, the business operator is expected to get itself registered under the Shops and Establishment Act.
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The Shops and Establishments Act was brought into existence, with an aim to bring benefits to the people, mainly the employees who work under such a business entity. This would secure a security net for all the employees so that equal rights can be showered upon them at par with the owners.
This Act looks into regulating the different aspects that form a part of the business entity. These activities possibly range from including the wages and other things like working hours etc.
Concerning the business entities, they ought to have a bank account so that their transactions can be possibly tracked. It can therefore be said that the shops and establishment Act would impart momentum and flexibility into the functioning of such business entities.
Shop and Establishment Act: Applicability
The above-mentioned Act is equally applicable to all the establishments that work on a commercial basis. It can include any shop establishment, hospitals and other educational institutions whose sole motive is to reap some profits.
Also it must be noted that factories are not regulated by such an Act. It is governed by a totally separate Act, which is the Factories Act, 1948.
What Is The Right Time To Apply For Registration?
The labour Department of a particular state is the head authority before which the applicant must find the application. The registered office of the company must fall within the jurisdiction of the Labour Department.
The application has to be filed by the applicant within the time framework of thirty days, starting right after the business has commenced its operations.
Obtain Shops and Establishments Certificate: List of Required Documents
- In case the structure of the business entity is modeled on sole proprietorship, then the following documents must be furnished in order for shop and establishment registration:
- In the first place, there is a need to specify the firm’s name that is seeking to get registered.
- Secondly, the PAN card with respect to the proprietor must be furnished as well.
- If the proprietor has any proof pertaining to the address, then it must be supplied.
- Rental agreement is indeed a necessary document that is required to be submitted for obtaining the shops and establishment certificate.
- Further, a passport size photograph should also be supplied.
- There is a need to mention about the nature of the business along with the contact details of the person concerned.
- Also, as mandated under some law, the applicant must obtain the copy of any permit or license on a prior basis, before the applicant goes on initiating the business.
In case, the business entity is structured on the model of the partnership firm, then the following documents needs to be submitted, so that the registration can be made under the shop and Establishments Act:
- In the first place, there is a need to supply the PAN card as associated with the partnership firm.
- Next in line, the identity proof must be supplied with respect to all the partners forming the partnership firm.
- Apart from the above mentioned thing, the rental agreement must be submitted.
- If there is a partnership deed, do not forget to submit it.
- With respect to the partners of the partnership firm, their passport sized photographs must also be submitted.
- As mentioned above, in case of the sole proprietorship, the nature of the business must be specified under the partnership firm as well. Apart from this, it is pertinent to mention about the contact details.
In case the business entity is modelled on the structure of a private limited company, then the list of documents as given below must well be supplied:
- In the first place, the PAN card needs to be supplied, as related to the private limited company.
- In view of the second step, the certificate of incorporation has to be submitted as held by the company.
- With respect to the directors of the company, their identity proof has to be presented along with the residency proof.
- If there exists a rental agreement, then do not forget to duly submit it.
- Memorandum of association of the private limited company must be submitted together with the Articles of association.
- With respect to the directors, their passport size photographs must be furnished.
- There is also a need to specify about the nature of the business together with the contact details of the person concerned.
What Is The Procedure To Be Followed In Order To Get Registered Under The Shops And Establishment Act?
- The very first step involves paying a visit to the official website wherein the applicant can obtain the labor license registration.
- Subsequently, fill the application form as prescribed under New registration and submit it online
- Once you have submitted for the new registration, then the applicant would receive the set username along with the password. These details would be receivable on the registered mobile number or the email id.
- Then it's your turn to login with the given details. Thereafter fill out the requisite fields as demanded.
- In accordance with the number of employees challan can be taken from the bank as specified in this regard.
- Keep in mind that along with the challan, the necessary documents must be attached, soon after the receipt number would be generated.
- A hard copy must be supplied with respect to the online application form to that of the specific regional circle so that due verification can be done by the inspector.
- Followed by the above mentioned step, the shops and establishment certificate would be duly issued, after verification has been made by the senior labor inspector as belonging to the particular office.
Shop and Establishment Certificate: Prescribed Fee for Registration
The fee which is to be paid for getting the registration under the Shop and Establishment Act is set at different rates by the respective states. The criteria as followed by some states is based on the type of establishment, while on the other hand some states stick to charging the fees on the basis of number of employees.
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In the nutshell it can be concluded that shops and establishment Act leave no stone unturned in looking after the working conditions of the employees, with special focus on the unorganized sector.
The shop and establishment certificate is issued under the provisions of the Act which is a mandatory element for any business entity, even if it involves having to operate from the premises of a home. Preferably, the business entity must obtain the registration within the time frame of thirty days, starting right after the commencement of the business.
This license, as obtained by the applicant, extends legal validity to the activities carried out by the business entity.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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