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Shop and Establishment Act
Shop and Establishment Act Registration
The Shop and Establishment Act governs the state's active shops and commercial establishments. The Shop and Establishment Act (the "Act") is unique to each state. The Act's general requirements, however, apply to all 50 states equally. The Shop and Establishment Act is put into effect by the labour departments of the individual states.
According to the Act, a shop is commonly defined as a place where items are sold, either retail or wholesale, or where consumers get services. As part of the trade or business, it also comprises offices, godowns, storerooms, and warehouses.
Generally speaking, a commercial establishment is any business, financial institution, trading company, insurance agency, or office-based service. Hotels, boarding houses, restaurants, cafes, theatres, and other public entertainment and amusement facilities are included. However, the Factories Act of 1948 and the Industries (Development and Regulation) Act of 1951 regulate factories and industries, which are not covered by the Act.
Regulations Under The Shop and Establishment Act
> Hours of work, annual leave, weekly holidays.
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Payment of wages and compensation.
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Prohibition of employment of children.
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Prohibition of employing women and young persons in the night shift.
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Enforcement and Inspection.
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Interval for rest.
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Opening and closing hours.
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Record keeping by the employers.
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Dismissal provisions.
Documents Required
> Shop or Business Establishment address proof.
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ID proof of the proprietor.
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PAN Card of the proprietor.
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Details of the employees.
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Payment challan.
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Additional business licenses necessary for starting the business, if any.