Shop Act License (Shops and Establishment Registration)
1. What is Shop Act License?
- A mandatory registration for businesses operating from a shop, office, or any commercial establishment.
- Issued under the Shops and Establishment Act of the respective State Government.
- Regulates working conditions, wages, holidays, hours of work, and employment rights.
📘 Applicable to:
- Shops
- Offices
- Restaurants, Cafes
- Freelancers/Consultants
- Online sellers
- Co-working spaces
- Service providers, etc.
2. Why is it Required?
- Legal recognition of your business
- This is prime document to establish proprietary firm
- Needed for opening a current bank account
- Required for GST registration, trade licenses, loans, etc.
- Helps comply with labor laws related to employee welfare
3. Details Required for Registration
- Business Name & Type
- Address Proof of business place (electricity bill, rent agreement, etc.)
- PAN Card of proprietor/partners/company
- Aadhaar Card of applicant
- Photos (Owner & Shop/Office premises)
- Employee details (if any)
- Email ID & Mobile Number
- Nature of business
4️. Documents Required
| For Proprietorship | For Partnership/LLP/Pvt Ltd |
| PAN + Aadhaar | PAN of Firm + Partners |
| Address Proof of Shop | Address Proof of Office |
| Photo of Signboard | Certificate of Incorporation |
| Rent Agreement / Tax Receipt | Partnership Deed / MOA-AOA |
| Declaration Form | Board Resolution (if required) |
5. Fees & Costing
- Govt. Fees: ₹100 – ₹5,000 (varies by state & employee count)
- Professional Fees: ₹500 – ₹2,000 approx.
- Total Cost: ₹1,000 – ₹7,000
Example:
Maharashtra Gumasta License (Single Owner + <10 employees): ~₹1,000 total
6. Processing Time
- Online Application: 1–3 working days (in most states)
- Offline (if applicable): 3–7 days
✅ Most major states now support 100% online application and issuance.
7. Validity & Renewal
- Validity: 1 year to 5 years (depending on state option chosen)
- Renewal before expiry is mandatory
- Non-renewal may attract penalties
8. Post Registration Compliance
- Display license at workplace
- Maintain employee attendance & wage register (if applicable)
- Update in case of change in:
- Address
- No. of employees
- Nature of business
- Ownership
9. Penalties for Non-Compliance : ₹ around 10,000
⚠️ Disclaimer
The above information is provided for general awareness and informational purposes only. While we strive to keep the content accurate and up to date, we do not guarantee the completeness, accuracy, or reliability of any information provided herein. The content should not be construed as legal, tax, or professional advice. We recommend consulting with our customer service team for the most recent and applicable guidance. We shall not be held responsible for any loss or liability arising from the use of this information.
