Shop Act and the Establishment Act

Knowledge about the Shop Act is very important for those who are planning to get into the world of business in India. It is compulsory for any business to register themselves into the Shop and Establishment Act since it is the first stepping stone of the vast and widespread world of business. In this article, we have touched upon the basics of the registration into the Shop and Establishment Act so that anyone who is interested about the business world can learn more about it.


The category of the Shop and Establishment Act falls under the rule of the State Legislation. This means that every state has their own set of rules and regulations when it comes to the registration of the shop. For this reason, the rules and guidelines of the shop registration varies from state to state. Therefore, before registering your shop or business in the Shop Act regime, it is very important to learn about the regulation on this matter of the state from where the entrepreneur is registering. Learning about these rules will be beneficial in the long run for the business person and he can easily avoid the registration mistakes.

Shop and Establishment Act of Tamil Nadu

Eligibility of the Shop and Establishment Act

Basically any shops or establishment are eligible to apply for the registration. This can be the commercial establishment, place of public amusement, theatres, restaurants, eating house, hotels, any shop and much more. Any business establishment must perform the registration into the Shop Act.


The goal of the Shop and Establishment Act is to make sure that the rights of both the employee and the employer is protected. The following actions are maintained by this act.

  • Payment of the wages
  • Hours of the work done
  • Terms and conditions of service
  • Bonus wages for the holidays
  • Policy about leave
  • Conditions of the work
  • Overtime work
  • Intervals for meals and rest
  • Prohibition of the employment of underage children
  • Employment of the youth and women
  • Leave for maternity and the benefits
  • Hours of opening and closing
  • Closed days or holidays
  • Fire or dismissal
  • Cleanliness in the establishment
  • Ventilation and lighting
  • Safety from fire and precautions
  • Accidents
  • Keeping records

Along with this list, a lot more office-related activities fall under the category of Shop Act.


Registration in Shop and Establishment Act

The shops or establishments which fall under the category of eligibility mentioned above has to apply for the registration within a span of 30 days starting from the date of the establishment through the prescribed form with adequate fees. The Department of Labor of the State Government looks after the Shop and Establishment Act. The registration form and the added documents are to be submitted to the local Labor Officer of the district.


If the authority or the concerned officer becomes satisfied with the application for registration, he or she will then issue the certificate of registration for the Shop Act. As mentioned before, the procedure of application will vary between states, but there is a set of common details which have to be submitted at the time of application. These details or documents are as follows.

  • Proof of address
  • Category of the establishment
  • Details of the employee
  • Name and the address of the establishment
  • Name of the employer
  • Number of the employee
  • Other relevant details as asked for
  • PAN of the establishment
  • Sale deed or the rent agreement

Here is a sample of the application for the Shop and Establishment Act to guide as a reference.


If there is any change made in the registration of the Shop Act, the concerned authority must be notified as soon as possible within the given time frame. It is the duty of the employer to let the concerned authority know about the closure or shut-down of the shop or establishment and apply for the surrender of the application for registration. Once the necessary documents are provided properly, the officer can decide the cancellation of the establishment.


Penalty and Punishment in the Shop and Establishment Act

It is compulsory for all the business shops and establishments to comply with the rules and regulations of the Shop and Establishment Act as prescribed in the guidelines to get the registration. If the establishment fails to obtain the registration or to follow the rules and laws of the Shop Act, then the establishment will have to face a penalty. The amount of the fine or the penalty will differ from state to state.


For further help refer Company Vakil experts.

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