Shops & Establishment Compliance

Shops & Establishment Act

The Shops and Establishment Act is a state-specific law that regulates the working conditions of employees in shops, commercial establishments, residential hotels, restaurants, theatres, and other places of public amusement.

Every business, whether service-based or trade-based, must obtain a Shops & Establishment Registration Certificate (Gumasta License in Maharashtra) within a prescribed time after starting operations.

At Nexgenca, we make registration and compliance easy, fast, and hassle-free.

Objectives of the Shops & Establishment Act

The Act aims to:

• Regulate working hours, holidays, and leave policies

• Ensure fair wages and proper working conditions

• Protect the rights of women and young workers

• Mandate registration of all shops & commercial establishments

Who Needs Shops & Establishment Registration?

The Act applies to all shops and commercial establishments, including:

• IT companies, startups, offices

• Retail shops, malls, showrooms

• Restaurants, hotels, cafés

• Educational institutions, coaching centers

• Hospitals, clinics, medical stores

• Warehouses, godowns

• Freelancers or home businesses (in many states)

Even if you don’t have employees, registration is required in most states as a business license proof.

Registration Process (Online/Offline – State Specific)

At Nexgenca, we simplify the process:

1. Application Submission – Online or offline form on state portal

2. Provide Establishment Details – Name, type, employer details, employees, PAN, GST

3. Upload Documents – Proof of business, ID proof, address proof

4. Payment of Fees – Based on number of employees and business type

5. Issuance of Certificate – Shops & Establishment Registration Certificate is granted

Registration must usually be done within 30 days of commencement of business.

Documents Required

• PAN of proprietor/partnership/company

• Aadhaar of employer

• Address proof of establishment (rent agreement/ownership document)

• Passport-size photos of employer

• Employee details (if any)

• GST certificate / incorporation certificate (for companies)

• MOA & AOA / Partnership deed (if applicable)

Renewal & Validity

• Validity depends on state rules – 1 year, 3 years, or 5 years

• Renewal required before expiry (some states now issue lifetime registration)

Penalties for Non-Compliance

Failure to register or renew under the Act can lead to:

• Monetary fines (₹1,000 to ₹10,000, depending on state & delay)

• Legal action from labour department

• Business license cancellation in extreme cases

With Nexgenca, you never miss renewals — we track all due dates for you.

Benefits of Shops & Establishment Registration

• Legal recognition of business

• Essential for bank account opening in the business name

• Mandatory for GST registration in some states

• Helps in business license & other government registrations

• Builds trust with employees & clients

• Ensures compliance with labour laws

Why Choose Nexgenca for Shops & Establishment Registration?

• State-wise expert assistance

• Fast online process completion

• Dedicated compliance support

• Hassle-free renewals

• Affordable pricing & zero hidden costs