If you’re a registered shop or commercial establishment covered under the act you need to mandatorily apply for Shop and Establishment Act License.
Often ignored but still super important for your restaurant or cafe!! You can attract some penalty in case of failure of acquiring the license.
Now Let’s get into the details…
What is Shop and Establishment Act License?
Whether you have a cafe, fine-dine, or food truck, you need to apply for a Shop and Establishment Act license. This license was introduced to monitor and regulate work conditions and to protect the right of employees in an unorganized sector of employment under the Indian Labor Law.
Under this act, as a restaurant owner you need to disclose the following things:
- The working hours of your restaurant-cafe
- Opening & closing hours
- Break time of employees
- Health and safety measures
- National and religious holidays
- Wages for overtime work
In this act, you also mention the employment and termination details like annual leaves, notice period, maternity leaves, and other leaves. With this license, you also protect children from child labor. It is also mandatory to register the shop or establishment within 30 days of commencement of work.
Documents Required For The Shop And Establishment Act License
Now that we understand what is Shop and Establishment Act license let’s see what documents are required for the same:
Proprietor Or Partnership:
- Pan Card of the Proprietor/Partners
- Id and Address Proof of the Proprietor/Partners
- Address Proof of the proprietor/Partners
- Details of the Employees
In Case Of The Company
- Pan Card of all the directors of the company
- Id and Address Proof of all the directors of the company
- Address Proof of all the directors of the company
- Details of the Employees
Steps To Get Shop And Establishment Act License
Once you have all the documents in place, it’s time for you to go ahead and follow these simple two steps to apply for your Shop and Establishment Act license
Step 1: Submit your documents
The restaurant owner needs to submit the above-mentioned documents to the local Chief Inspector under the Act along with its application form mentioning the following things:
- The name of the restaurant or cafe
- Postal address of the establishment
- Proof of ownership like Rent agreement or Shop lease papers
Step 2: Verification of documents
Once the inspector receives your application they will verify it and issue a license certificate in the name of your restaurant. The verification of your documents and issuance of your license certificate can take up to 7-10 working days. Annual renewal of this license is required.
In case if there are any changes in the details of your establishment, you can request it within the first 15 days to the inspector otherwise you need to reapply for the license.
The total fees of the license can cost you up to INR 4000. However, fees shall vary depending on the state to state. It is also mandatory to communicate about the shutting down of the business before 15 working days to the local inspector.
Licenses for different cities may vary. Make sure to submit your documents on a genuine state/central government website only.
Hope this helps you in getting your Shop and Establishment Act license for your restaurant or cafe.
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