Shop Act (Ghumasta) Registration

Shop and Establishment Registration: Your Key to Legitimate Business Operations

Shop and Establishment Registration is a crucial legal requirement for businesses in India. State Labour Departments regulate the Shop Act, which grants licenses for commercial establishments and shops. The primary aim is to regulate and govern all commercial establishments and shops within the state.

Understanding Shop and Establishment Act

The Shop and Establishment Act defines a shop as an establishment where goods are sold or provided, while commercial establishments focus on office-related work in commerce, finance, trading, or insurance. These establishments include offices, godowns, storerooms, and warehouses, with businesses like hotels, restaurants, cafes, theaters, and public entertainment venues excluded.

Step 1

Contact our experts, agents will schedule call, collect necessary documents, and initiate the registration process

Step 2

Expert team initiates transparent food business registration process, providing timely updates and transparent services

Step 3

Food department officials inspect businesses, ensuring successful registration and obtaining a 14-digit FSSAI license

Step 1

Contact our experts, agents will schedule call, collect necessary documents, and initiate the registration process

Step 2

Expert team initiates transparent food business registration process, providing timely updates and transparent services

Step 3

Food department officials inspect businesses, ensuring successful registration and obtaining a 14-digit FSSAI license

Significance of Shop Act License

The introduction of the Shop Act License holds several crucial objectives:

State Empowerment

Act enables states to customise regulations based on local culture.

Organized Sector Boost

Government aims to transform the unorganized sector into organized industry through rules and regulations.

Mandatory Registration

Businesses register under the Shop and Establishment Act for better organization, monitoring, and government assistance.

Wage Regulation

Act prohibits arbitrary salary/wage fixation, ensuring fair compensation for employees.

Child Labor Prevention

Eliminates child labour, promoting safer environment for young people.

Healthy Work Environment

Act promotes healthy work environment, ensuring employee well-being.

Benefits of Shop and Establishment License

Legal Authorization

A shop and establishment license allows businesses to operate within the act's jurisdiction, preventing law enforcement harassment.

Hassle-free Inspections

Small businesses access government schemes and low-interest loans.

Market Expansion

Legal entity status enhances market position and consumer reach

Business Bank Account

License streamlines business account opening, complies with RBI regulations.

Access to Government Benefits

License grants access to government schemes promoting small businesses.

Required Documents for Shop and Establishment Registration

Shop or business address proof
ID proof
PAN card
Payment challan
Additional business licenses

Steps to Shop Act Registration

Contact Experts

Contact Fincto experts for shop and establishment registration.

Document Submission

Provide the required documents for registration.

Inspection & Approval

The labor department inspects and approves the application.

Validity of Registration Certificate

The certificate issued is generally valid for five years from the date of issue.

Eligibility Criteria for Shop Act Registration

The establishment should be within the state's territorial limits.
It should not fall under other legislation like the Factories Act, 1948.
The business should engage in commercial activities.
It should employ at least one person.
Registration address

Papers Required for Registration

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Why Choose Fincto?

Fincto simplifies shop and establishment registration, ensuring hassle-free, efficient operations with expert guidance.

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Registration fees and stamp duty
Incorporation certificate (COI)
Company PAN and TAN
Zero balance current account
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