If you are running any startup in India that gets covered under commercial establishment, specified below, you need to get registered under the Shop and Establishment Act (S&E Act) that governs laws related to the treatment of your employees.
A commercial establishment includes:
- Any establishment where individuals are employed or engaged to do office work or provide service
- Any commercial sector, such as banking, trading or insurance establishments
- Societies, charitable trusts, printing establishments, educational institutions run for gain
- Residential hotels, restaurants, eating houses, café
- places of public amusement / entertainment
The Act regulates payment of wages, hours of work, annual leave, maternity leave, sickness and casual leave, terms of service and other work conditions of people employed in shop and commercial establishments.
When do I need to register under S&E Act?
If you are starting a commercial establishment, you need to file for registration under the S&E Act, within 30 days of commencement of your establishment.
Registration under S&E Act is mandatory to open a current account in a bank for your business.
How to apply for registration under S&E Act?
Each Indian State has different set of rules for registration under S&E Act. However, the basic process of registration remains same.
Here are examples of S&E Act from various States:
- New Delhi Shop and Establishment Act
- Mumbai Shop and Establishment Act
- Tamil Nadu Shop and Establishment Act
- Karnataka Shop and Establishment Act
You need to download the registration form the official websites of different States, fill and submit to the Chief Inspector of Shops and Establishment Act, or to other inspectors delegated to the area where you run the establishment. You would need to provide the following details while filling the registration form:
- The name of the establishment
- Name and details of the employer and the number of employees at the time of incorporation of business
- The address of the establishment and a copy of sale deed or rental agreement
- PAN card of the business or the employer
Once the application is received, the Inspector may visit your establishment, if required, and provide a registration certificate under the Act. You can get the certificate issued within 10 working days in major cities.
You need to display the registration certificate at a prominent place in your shop or establishment. Also you need to renew in case of changes such as number of employees or if the certificate expires.