Shop And Establishment Registration In Delhi

Published on 15 Dec 2018 by Shivi

The Shops and Establishment Act is a state law that regulates the manner in which a business established in the state is conducted and operated. The states in India have their own shop & establishment Act, for instance, Delhi has its own Delhi Shops and Establishment Act, 1954. The shop and establishment Act in Delhi lays down the provisions on obtaining shop & establishment registration certificate, rules relating to employees, working hours, wages, etc.

What Is An Establishment?

Establishment means any commercial establishment, residential hotel, restaurant, eating house, theatre, or any other place of public amusement or entertainment. Additionally, other establishments that the State Government may, by notification in the Official Gazette, declare to be an establishment would then classify as establishments.

What Is A Shop?

Shop means any premises:

  1. Where goods are sold, either by retail or wholesale.
  2. Where services are rendered to customers.
  3. An office a store-room, godown, warehouse or workplace, whether in the same premises or otherwise, used in connection with such trade/ business.

Rules Under Delhi Shops And Establishment Act

  1. An adult cannot be employed or allowed to work in an establishment for more than 9 hours on any day or 48 hours in any week.
  2. For any work in excess of 9 hours in a day or for more than 48 hours in a week, overtime wages are to be paid at the rate of double the wages.
  3. No person can be made to work in an establishment or two or more establishments or an establishment and a factory in excess of the period during which he may be lawfully employed under this Act.
  4. No deduction can be made from the wages of any employee on account of an off under Section 16 or a holiday granted under Section 17 of the Act.
  5. Every employer, his agent or manager of any establishment must fix periods in respect of which wages to the employee shall be payable and such person must be responsible for the payment.
  6. No woman can be required or allowed to work, whether as an employee or otherwise, between 9 PM and 7 AM during summer and between 8 PM and 8 AM during winter.
  7. No person can work for two or more establishments or an establishment and a factory in excess of the period during which he may be lawfully employed under this Act.
  8. The Act also lays down the provisions relating to opening and closing hours of shop or establishment, weekly holidays, wages for holidays, deduction from wages, cleanliness, lighting and ventilation in the establishment, safety from fire hazards, etc.

READ: Uttar Pradesh Shops and Commercial Establishments Act, 1962

Procedure Of Shop And Establishment Registration In Delhi

The first step for registration under Delhi shop & establishment Act is to submit an application to the Inspector of the area within 90 days of starting any work in shop or establishment. A prescribed fee needs to be paid at the time of submitting the application and the shop and establishment application must contain the following information:

  1. Name of the employer and manager, if any.
  2. The postal address of the establishment.
  3. The name of establishment.
  4. The category of the establishment, i.e., whether it is a shop, commercial establishment, residential hotel, restaurant, eating house, theatre or other places of public amusement or entertainment.
  5. The number of employees working in the establishment.
  6. Other particulars as may be prescribed.

Documents Required For Registration Under Delhi Shops And Establishment Act

For shops and establishment registration in Delhi, the following documents are needed:

  1. Proof of Address of the commercial establishment.
  2. Proof of Address like rent agreement, lease deed, etc. if the premise is rented.
  3. Identity proof of the employer.
  4. PAN Card of the employer.

After the application is received, the Inspector begins the verification process for authenticating the information provided in the shop & establishment application. Once the information is verified, the Inspector enters the details of the establishment in the Register of Establishment.

Upon entering the details of the establishment in the Register, the Inspector issues a shop and establishment registration certificate. The Delhi shop and establishment registration certification is valid for a period of 5 years, after which, it must be renewed. The registration certificate must be displayed at a prominent place in the establishment at all times.

Legistify connects you with the best business law experts who can assist you in getting your shop and establishment registration done online in Delhi. You can give us a call at 846-883-3013 or send us an email at [email protected] to talk to our shop & establishment registration experts.


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