Benefits of Registration under Shop & Establishment act
Unlike most of the nations, the unorganized sector is a backbone of Indian Economy. As of December 2019, the size of this unorganized sector is around $700 billion! So it is safe to say that this sector offers a lot of job opportunities.
Shop and Establishment Act was framed to ensure the safe working environment and rights of the people working in this industry. Almost every business in India has to follow the regulations mentioned in this law.
This law regulates equal and minimum wages, healthy working conditions, working hours, holidays and other benefits that are available to the employees in this unorganized sector. So irrespective of the nature of your business, it is mandatory for retail businesses, shops, commercial firms and any other profit-making organizations, you have your business registered.
Every state has a minor variation in terms of criteria for the Shop and Establishment act. So depending on the state in which you are operating your business, it becomes vital for you to register your business under this act.
Benefits of registration under Shop and Establishment Acts
- Gives you the right to do the business
For doing any business in India, you must have some kind of registration. If you are planning to start a small shop, retail business or any other profit-making business, you must have some sort of registration.
Shop and Establishment Act gives you this right. By registering under this act, you get a legal right to operate your business in the respective city or town.
- Helpful during regular inspections
Local authorities in India regularly perform inspections to assert whether necessary rules and regulations are followed or not. This includes minimum wages, cap of working hours, regular holidays, better working conditions and other benefits that an employee is entitled to.
If you are registered under Shop and Establishment Act, you won’t have to worry about this inspections as this license is provided to you after thorough inspections of such regulations. So, when the authorities come for inspection, it will be done quickly and smoothly.
- Helpful in Opening Current Account for your business
Your business needs a current account as all the regular transactions can not be done in your personal saving account. When you apply for a Current Account with any bank, you will have to produce proof to establish the existence of your business.
Shop & Establishment act’s certificate can come in handy at this time. As it shows that your business is registered with the local authorities, the process of opening the Current account will become straightforward.
- Helpful in availing Government benefits
Every now and then, the Central Government & State Government introduce multiple schemes for the growth and upliftment of small businesses. To avail the benefits of these schemes, the business must be registered under the Shop & Establishment Act.
- Boosts your reputation in Market
The main goal of this act is to ensure the employer exploits no employee in any manner. Registration under this act ensures that your employees are getting on-time minimum wages; women employees are getting maternity leave, better working conditions, payment for overtime, and no child labour are employed in your Shop.
Registration under Shop and Establishment act ascertains that your business is following the necessary norms, and that makes you a role model for others.
You will need the following documents to register your business under Shop & Establishment Act:
What are the documents necessary for registration under Shops & Establishment Act?
Any ID proof of the owner (PAN/Driving License/ Voter Id/ Aadhaar Card)
Electricity bill of the premises for which the registration has to be obtained
Specific license necessary for a specific business
Rent agreement (if applicable)
Partnership Deed (if applicable)
The ultimate goal of the Shop and Establishment Act is to create a peaceful working environment where employer and employee both can have peace of mind and grow together.
In the past, we as a nation have faced many issues related to the people working in the organized sector. This is our chance to ensure such mistakes are not repeated, and we emerge as a strong and united nation once again.
So registering your business under this act becomes your legal as well as moral duty towards the nation.
If you are planning to start a new business or already own a business that needs the registration under this act, reaches us, we will help you in the registration process.
With Probal Consulting Group, everything is just a click away!
For any more detail, get in touch with us!
Probal Consulting Group is a leading Taxation, Accounting and Compliance firm that helps individuals, MSMEs and other businesses manage their accounting, taxation regulatory compliance affordably.