How To Get Shop And Establishment Act License For Your Restaurant

In our previous articles, we have been discussing FSSAI licenses as it is one of the most important licenses and any person involved in the food business is under the compulsion to possess it. There are some documents apart from Food licenses that are important as well. In this article, we would specifically discuss the Shop and Establishment Act License which is essential but the most ignored license at the same time. First, we will look at what the purpose of the ‘Shop And Establishment Act’ is, what are the documents required to get the Shop and Establishment Act License, and finally, how to get a shop license.

What Is The Shop License And Establishment Act

The Shop and Establishment Act was regulated to monitor or regulate work conditions and to protect the right of employees in an unorganized sector of employment under the Indian Labor Law. The Shop and Establishment Act is mandatory for all kinds of food businesses in India be it a Food truck or a Fine Dining Restaurant. You must understand what and hows of the shop licenses before moving forward.

Under this act, an employer has to declare the following:

• The working hours of the shop
• Opening & closing hours
• Rest interval of employees
• National and religious holidays
• Health and safety measures
• Wages for overtime work

Apart from this, a shop license also protects children from Child Labor. The owner of the shop or establishment should lay proper rules of employment and termination with details of annual leave, maternity leave, sickness, and casual leave, etc.

All food businesses should maintain the records under the Shops and Establishment Act such as approval from the department of labor and attendance and salary registers giving details of employment, fines, deductions and advances, salary, holidays, etc. The document related to annual holidays/leaves and the number of employees should be submitted to the local municipal corporation yearly. You could use your restaurant management software to ensure that your staff’s performance is well analyzed.

It is also mandatory to register the shop or establishment within 30 days of commencement of work.

Documents Required For The Shop And Establishment Act License

Now that you know the purpose of The Shop and Establishment Act, we come to the list of required documents for The Shop and Establishment Act. The following documents are essential for applying the Shop License for your restaurant.

Proprietor Or Partnership:

1. Pan Card of the Proprietor/Partners

2. Id and Address Proof of the Proprietor/Partners

3. Address Proof of the proprietor/Partners

4. Details of the Employees

In case Of The Company

1. Pan Card of all the directors of the company

2. Id and Address Proof of all the directors of the company

3. Address Proof of all the directors of the company

4. Details of the Employees

How To Get Shop License And Establishment Certificate

Once you have all your documents in place, the last thing to do is to get your Shop and Establishment License Certificate. Here are two simple steps to do so:-

Send The Relevant Documents

The owner should send all the aforementioned documents with an application form mentioning the name of the establishment, postal address of the establishment and proof of ownership like Rent agreement or Shop lease papers to the local Chief Inspector of Shops or other Inspectors under the Act.

Verification Of Your Documents

The government official, on verifying the statement, shall register the establishment in the register of establishments and issue a registration certificate. This certificate has to be prominently displayed at the establishment and needs to be renewed before it expires. The whole procedure might take a time of 7-10 working days.

If the owner wishes to change any information from the initial statement, the changes should be communicated within 15 days to the Inspector and he will make changes in the register of establishments and issue a fresh registration certificate.

The total lump sum fees including government fees, affiliate fees, and miscellaneous expenses start from Rs 4,000. However, the fees may vary from State to State. It is also mandatory to communicate about the closure of business within 15 working days to the local inspector.