Shops & Establishments License

Empowering solo entrepreneurs to incorporate with ease – One Person Company registration made simple.

AI Advisory ensures you the Hassel Free Online Process!
Fill out the registration form & start the process today.

Talk to an Accounting Expert Today!

About this Plan

All states have their own Shop and Establishment Acts but adhere to the same general provisions. State Labour Departments regulate Shop Act. According to this shop act registration, licenses are issued by the respective states. Therefore they differ slightly from state to state. The shop and establishment registration Act regulates all shops and commercial establishments within the state.


As defined by the Shop and Establishment Act, a shop is where goods are sold or provided, whether retail or wholesale or where services are rendered. Commercial establishments generally employ people for office work, such as commercial, financial, trading, or insurance companies. Offices, godowns, storerooms, and warehouses are examples of commercial establishments. The term includes hotels, boarding houses, restaurants, cafes, theatres, and other public entertainment venues. However, factories and industries are not covered by this shop act registration. They are governed by the Factories Act 1948 and the Industries (Development and Regulation) Act 1951.


1.Legal Compliance: The license ensures that the business is legally compliant with the government regulations and laws related to labour, working hours, holidays, and wages.

2.Employee Welfare: The license ensures the protection of the interests of the employees and provides them with various facilities such as paid leaves, working hours, holidays, etc.
3.Business Credibility: Having a Shops and Establishments License improves the business’s credibility and reputation in the market, making it more trustworthy and reliable.

4.Access to Bank Loans: The license is mandatory for obtaining loans from banks and financial institutions for business expansion and growth.

5.Smooth Operations: The license provides a framework for smooth operations of the business, ensuring that the business is conducted in a lawful manner.

6.Government Benefits: The license allows the business to avail of various government benefits and subsidies.

7.Avoid Penalties: Failure to obtain the license can lead to penalties and legal action, resulting in a loss of business reputation and finances.

Eligibility Criteria to Register Under Shop and Establishment Act 1947

The Shop and Establishment Act is a state-specific law that regulates the working conditions of employees in shops, commercial establishments, and other service sectors.

The eligibility criteria to register under the Shop and Establishment Act 1947 may vary from state to state, but some of the common criteria are as follows:

1.Business Entity: Any person or entity that carries out commercial activities such as selling goods, providing services, or doing any trade or business is eligible to register under the Act.

2.Business Location: The business must be located within the territorial limits of the state where the registration is sought.

3.Business Type: The business must be engaged in commercial activities, such as a shop, commercial establishment, or any other service sector.

4.Employee Strength: The business must have at least one employee, either permanent or temporary.

5.Nature of Business: The nature of the business must be such that it does not violate any of the provisions of the Act.

6.Business Hours: The business must adhere to the prescribed working hours and rest intervals for its employees.

7.Registration Fees: The business must pay the prescribed registration fees as per the state rules.

It is important to note that the eligibility criteria may vary from state to state, and it is advisable to check the specific eligibility criteria for the state where the registration is sought.

Documents Required

We provide end-to-end online shop act registration fulfilment services that are hassle-free and 100% digital.

Please prepare your documents as soon as possible

1. Shop or business address proof
2. ID proof
3. PAN card
4. Payment challan
5. Additional business licenses necessary to start a business


Step 1: Contact our Experts
Book a slot with our experts from Vakilsearch. They will resolve all your queries about the shop and establishment registration and initiate the process

Step 2: Submit your Documents
Provide all the documents required for shop and establishment registration to our associates from Vakilsearch for the documents as per your requirement. You have to submit the same

Step 3: Inspection & Approval
During an inspection, the labour department will verify the information you provided and the documents attached to your application. Usually, an inspection isn’t needed. The authorities usually approve your application after reviewing your application and visiting your business location. We will deliver your shop act license to your doorstep.