How to Get Shop and Establishment Act License for Your Restaurant Business

How to Get Shop and Establishment Act License for Your Restaurant Business

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. Apart from Food license, other documents are equally important to pursue food business or restaurant business in India. In this article, we would specifically discuss the Shop and Establishment Act License which is yet another important document and most ignored license at the same time.

Shop and Establishment Act License

The Shop and Establishment Act was regulated in order to monitor or regulate work conditions and to protect the right of employees in an unorganized sector of employment. The Shop and Establishment Act is mandatory for all kind of food business in India be it a Food truck or a Fine Dining Restaurant.

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, it also protects children from Child labour. The owner of the shop or establishment should lay proper rules of employment and termination with details of annual leave, maternity leave, sickness and causal leave etc.

All food businesses should maintain the records under the Shops and Establishment Act such as approval from the department of labour and attendance and salary registers giving details of employment, fines, deductions and advances, salary, holidays, etc. The document related to annual holidays/leave and a number of employees should be submitted to the local municipal corporation yearly.

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

Documents Required for Applying for the Shop and Establishment Act License

The following documents are essential for applying the Shop and Establishment Act 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 the Registration Certificate:

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.

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 expense start from Rs 4,000. However, the fees may vary from State to State. It is also mandatory to communicate about a closure of business within 15 working days to the local inspector.

 

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