The Shops and Establishments Act is a state law that regulates working hours, holidays, wages and conditions in shops, offices and commercial establishments — and requires every such establishment to be registered with the local labour department, usually within 30 days of starting. Banks ask for it to open a current account, and it is the "business proof" most other registrations accept. Each state has its own Act, portal and fee, which is why "shop act licence" searches are endless.
Who must register
Shops, retail stores, offices, warehouses, restaurants, hotels, theatres, clinics, salons, coaching centres, agencies, freelancers running an office, and — in most states — businesses run from home that employ anyone. Factories are covered by the Factories Act instead. Several states exempt establishments with no employees from the licence but still require an intimation.
Documents
- PAN of the business/owner; Aadhaar of the owner/partners/directors
- Proof of the premises: rent agreement or ownership proof, plus electricity bill
- Photo of the shop front with signboard (name in the local language where mandated)
- Constitution document: partnership deed / incorporation certificate / MOA
- Details of employees (count, names, weekly off)
- GST certificate (if any); trade licence from the municipal body where required
- Fee payment
State-wise snapshot
| State | Portal | Employees threshold | Fee (indicative) | Validity |
|---|---|---|---|---|
| Maharashtra | mahakamgar / LMS (Shops & Establishments) | Registration mandatory for 10+ employees; intimation for fewer | ₹0–₹8,000+ by headcount (lifetime after 2017 Act; renewal not required for <10) | 10 years / lifetime |
| Delhi | labourcis.nic.in | All establishments | Nil fee; online registration certificate | Lifetime (update changes) |
| Karnataka | e-Karmika | All establishments | ₹300–₹12,500 by headcount | 5 years |
| Tamil Nadu | labour.tn.gov.in | All establishments | ₹0–₹1,000 by headcount | 1–5 years (renewable) |
| Gujarat | e-Nagar / Labour Dept | 10+ employees (registration); intimation below | ₹0–₹5,000 | 1–10 years (options) |
| Uttar Pradesh | UP Labour (Nivesh Mitra) | All establishments | ₹40–₹1,000 by headcount | 1–5 years |
| Telangana | TS-iPASS / Labour Dept | All establishments | ₹100–₹2,500 by headcount | 1 year (renew) |
| West Bengal | Shops & Establishments online | All establishments | ₹200–₹2,000 by headcount | 1 year (renew) |
| Rajasthan | SSO Rajasthan | All establishments | ₹100–₹500 | Lifetime with updates |
Fees and thresholds change with state notifications; the portal shows the current schedule at application.
How to apply (typical online flow)
- Register on the state labour portal with mobile/email OTP.
- Fill the form: establishment name and category, address, nature of business, owner and manager details, employee count by gender, working hours, weekly holiday, date of commencement.
- Upload documents (PDF/JPEG, size limits apply).
- Pay the fee online.
- Download the registration certificate (Form F / equivalent) — usually instant to 7 days; some states inspect before issuing.
- Display the certificate at the premises.
Count the 30-day deadline from commencement in calendar days; use the business days calculator if your state specifies working days.
What the Act regulates (and inspectors check)
- Hours: typically 9 hours/day, 48/week; overtime at double rate; a weekly holiday; rest intervals.
- Opening/closing times (relaxed in most states; 24×7 allowed for many categories with conditions).
- Women's night work — permitted with consent, transport and security under the OSH Code and state rules.
- Leave: earned leave (usually 1 per 20 days worked), casual and sick leave, national and festival holidays.
- Wages: paid by the 7th, wage slips issued — the wage slip generator covers the format.
- Registers: attendance, wages, leave — most states now accept electronic registers.
- Displays: certificate, working hours, weekly holiday, wages notice.
Penalties for non-registration are modest (₹1,000–₹10,000, more for repeat) but it holds up bank accounts, GST verifications and tenders.
Changes and closure
Notify changes (address, name, employee count) within 15–30 days, usually by amending online. On closure, inform within 15 days and surrender the certificate to avoid renewal demands.
Online or offline? It depends on the state
Most large states now run the whole process online and issue a digitally signed certificate you print yourself — Maharashtra (Aaple Sarkar), Karnataka (e-Karmika), Delhi (Labour Department portal), Tamil Nadu, Telangana (TS-iPASS), Gujarat and Uttar Pradesh among them. Several of these have also moved to deemed approval: if nobody objects within the stated window, the certificate is generated automatically.
Smaller states, union territories and some municipal corporations still work partly or wholly offline — a physical form at the municipal or labour office, the fee by challan, and a certificate collected in person. A few are hybrid: apply online, then submit self-attested documents at the counter before the certificate is released.
Two things hold true either way: the application is to the local authority (municipal corporation or state labour department) for the specific premises, so two branches mean two registrations; and the certificate must be displayed at the shop, which inspectors do check.
FAQ
Can I apply for a shop and establishment licence online?
In most large states, yes — Maharashtra, Karnataka, Delhi, Tamil Nadu, Telangana, Gujarat and Uttar Pradesh all run online portals, several with deemed approval if there is no objection within the stated window. Some smaller states and municipal corporations are still offline or hybrid, where documents are submitted at the counter after applying online.
Is a Shop Act licence needed for an online business run from home?
In most states, yes, if you employ anyone or operate commercially from the premises; some states exempt sole operators. It also serves as business proof for a current account.
Is it the same as a trade licence?
No. The trade licence is issued by the municipal corporation for specific trades (food, health, etc.); the Shops & Establishments registration is from the labour department. Many businesses need both.
How long does it take?
Instant to 7 working days in most states with online portals; up to 30 days where inspection precedes issue.
Do I need to renew?
Depends on the state: Maharashtra (post-2017) and Delhi are lifetime; Karnataka 5 years; Telangana and West Bengal annually.