What is the Shop & Establishment Act?
The Shop & Establishment Act is a state-specific law that regulates the working conditions, hours of work, wages, holidays, and employment rights of people working in shops, offices, restaurants, commercial establishments, and other businesses.
It applies to all commercial establishments, whether you’re a:
⇒ Retail shop
⇒ IT company
⇒ Restaurant or hotel
⇒ Consultancy or startup
⇒ Freelance professional with an office
✅ Registration is mandatory, even if you have just 1 employee.
What is Shop & Establishment Compliance?
Shop & Establishment Compliance means:
⇒ Registering your business under the Act
⇒ Following rules related to working hours, holidays, employee rights, and workplace conditions
⇒ Submitting necessary returns and maintaining proper records
Key Compliance Requirements
1) Registration of Establishment
⇒ Apply for a Shop & Establishment license within 30 days of starting business
⇒ Registration is state-specific (e.g., Karnataka under the Karnataka Shops and Commercial Establishments Act, 1961)
2) Display of License
⇒ Must display your valid registration/license at your place of work
3) Working Hours & Holidays
Follow state guidelines on:
⇒ Opening and closing hours
⇒ Weekly holidays
⇒ Maximum daily and
⇒ weekly working hours
⇒ Overtime pay
4) Leave Rules
⇒ Maintain records of annual, sick, and casual leave as per rules
5) Maintenance of Records:
⇒ Attendance, wages, leave register, holiday list
⇒ Registers must be ready for inspection by labour officials
6) Renewals & Amendments
⇒ Update the license for any changes in address, ownership, or number of employees
⇒ Some states may require annual renewal, while others issue perpetual licenses
Benefits of Compliance
⇒ Avoid Legal Issues – Prevents penalties, closures, or cancellation of license
⇒ Employee Welfare – Promotes fair work culture and employee rights
⇒ Inspection-Ready – Peace of mind during labour or municipal inspections
⇒ Business Proof – Registration helps with bank accounts, loan applications, and official contracts
⇒ Professionalism – Shows clients and partners you’re a legitimate, law-abiding business
Non-Compliance Can Lead To:
- Fines ranging from ₹100/day to ₹1,000 or more
- Cancellation of registration
- Legal notices or shutdown orders
Our Shop & Establishment Compliance Services Include:
- New license application and registration
- Renewal or modification of license
- Setting up compliant HR policies and work schedules
- Preparation of registers and statutory records
- Representation in case of inspections or labour queries
- Advisory on leave policy, work hours, and closures