Shop & Establishment License

Shop and Establishment Act Registration Online

The Shops and Establishment Act guarantees that both the organised and unorganised sectors give workers suitable working conditions.

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Shop Act License is a mandatory registration that every business establishment must obtain under the Shop and Establishment Act, which is a state-specific law regulating the working conditions and employment-related rights of workers in the unorganized sector, such as shops, commercial establishments, hotels, and other service providers.
The Shop Act License is issued by the respective State Government authorities and serves as a proof of registration and compliance with the local laws. It also helps the government to maintain a database of all the commercial establishments operating within its jurisdiction.
Some of the key information required for obtaining a Shop Act License includes the name and address of the establishment, details of the owner, nature of the business, number of employees, and working hours.
The validity period and renewal process of the Shop Act License may vary from state to state. Generally, the license is valid for a period of one year and needs to be renewed periodically to ensure continuous compliance with the laws.
It is important for businesses to obtain the Shop Act License as non-compliance can result in penalties, fines, and legal action. Moreover, the license serves as a necessary prerequisite for obtaining other licenses, permits, and registrations required for operating a business, such as GST registration, trade license, and others.


Obtaining a shop and establishment license is essential for any business that operates within a specific jurisdiction. Here are some benefits of obtaining a shop and establishment license:

Legal compliance: A shop and establishment license is a legal requirement for most businesses operating in a particular state or municipality. Obtaining this license ensures that the business is compliant with the legal requirements of the area.
Business registration: A shop and establishment license serves as a registration certificate for a business. This certificate can be used as proof of registration and helps establish the business's legitimacy.
Bank account opening: A shop and establishment license is a prerequisite for opening a bank account for the business. It helps establish the identity and credibility of the business.
Employee welfare: The shop and establishment license provides guidelines on the working conditions and welfare of employees. This ensures that the business operates in compliance with the regulations and offers a safe and secure working environment for its employees.
Statutory benefits: Businesses with a shop and establishment license can provide their employees with statutory benefits such as provident fund, employee state insurance, and gratuity. This makes the business more attractive to potential employees.
Business credibility: Obtaining a shop and establishment license shows that the business is serious about its operations and is committed to complying with legal requirements. This enhances the business's credibility and reputation.

Important Points For Shop & Establishment License


Working hours:

The act defines the maximum number of hours that an employee can work in a week and sets guidelines for overtime pay. It also mandates that every shop and establishment must remain closed on at least one day of the week, which is usually Sunday.


Employment records

The act requires every shop and establishment to maintain a register of employees, which should include their names, addresses, and working hours. Employers must keep these records up to date and make them available for inspection by the authorities.


Health and safety

The act requires employers to provide a safe working environment for their employees, including adequate lighting, ventilation, and sanitation facilities. Employers must also take measures to prevent accidents and ensure that employees are trained in safety procedures.


Child labor:

The act prohibits the employment of children below the age of 14 in any shop or establishment. Employers who violate this provision can face fines and imprisonment.


Wages and benefits:

The act mandates that employers must pay their employees at least the minimum wage prescribed by the government. It also sets guidelines for the payment of overtime, holidays, and other benefits.


Closure of business:

The act sets guidelines for the closure of a shop or establishment, including the payment of dues to employees and the submission of relevant documents to the authorities.

Documents Required


  • Proof of identity and address of the owner/proprietor (such as Aadhaar card, passport, voter ID card, or driving licens
  • Proof of ownership or tenancy of the commercial space where the business will be conducted (such as rent agreement, lease deed, or property tax receipt)
  • PAN card of the business entity or the proprietor
  • Registration certificate of the business entity (if applicable)
  • Details of the employees, such as their names, addresses, and salary details
  • Proof of payment of the requisite fees
  • Any other documents that may be required by the local authorities, such as a NOC from the fire department or health department, or a certificate of incorporation.
  • A picture of the business or shop and the employee




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  1. Fill the Easy form & Make the payment

  2. Get the Call from Expert 

  3. Prepare all documents  and file on your behalf.

  4. 30 days after the start date, submit an application to the chief inspector using the prescribed form.

  5. Grant of licence following thorough examination


  • Q1.What is a Shop and Establishment License?

    A Shop and Establishment License is a legal document issued by the local government to businesses that operate within a particular jurisdiction. This license authorizes the establishment to operate and conduct business in a specific area.

  • Q1.Who needs to apply for a Shop and Establishment License?

    All businesses that operate within a jurisdiction need to apply for a Shop and Establishment License. This includes shops, offices, commercial establishments, and other similar businesses.

  • Q1.What are the benefits of obtaining a Shop and Establishment License?

    Obtaining a Shop and Establishment License has several benefits, including legal recognition, eligibility for various government schemes, access to bank loans, and the ability to register for other necessary licenses.

  • Q1.How do I apply for a Shop and Establishment License?

    The process for obtaining a Shop and Establishment License varies depending on the jurisdiction. However, the application typically involves submitting the necessary documents and paying the required fee. You should check with the local government to obtain detailed information on the application process.

  • Q1.What documents are required to obtain a Shop and Establishment License?

    The documents required to obtain a Shop and Establishment License may vary depending on the jurisdiction. However, some common documents that are typically required include proof of ownership or lease agreement of the establishment, PAN card of the business owner, identity proof, and address proof of the business owner.

  • Q1.How long does it take to obtain a Shop and Establishment License?

    The time it takes to obtain a Shop and Establishment License varies depending on the jurisdiction. However, it generally takes a few weeks to a month for the license to be issued.

  • Q1.Is it mandatory to renew the Shop and Establishment License?

    Yes, it is mandatory to renew the Shop and Establishment License periodically. The frequency of renewal may vary depending on the jurisdiction, but it is typically required annually.

  • Q1.What are the consequences of operating without a Shop and Establishment License?

    Operating without a Shop and Establishment License can result in legal penalties, including fines and imprisonment. It can also lead to the closure of the establishment and other legal repercussions.

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