All About Shop & Establishment Registration in Odisha

Odisha Shops And Commercial Establishments Act, 1956, was introduced to regulate working conditions of all commercial establishments in the entire Odisha state. This Act is validated for protecting employee rights as it provides ordinance on various employment terms and policies. As a company registers under this Act, it implies that any establishment is licensed to operate within the regional jurisdiction under the Labour Department.

Keep reading to know more about shops and establishments registration in Odisha.

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Eligibility Criteria to Register Under Odisha Shop & Establishment Act 1956

Any commercial establishments such as banking, insurance or trading will fall under this Act. Owners of eateries, restaurants, small cafes, and hotels can also register themselves under this Act. Also, owners of amusement parks and entertainment places like cinema halls or theatres need to register and adhere to the regulation mentioned in this Act.

However, exemptions of establishments vary from one state to another. Every Indian state has a list of shops and commercial establishments entitled to register under this Act. Therefore, business owners in Odisha need to meet their legal advisors to know their local laws and run the establishment legally.

Establishments Exempted From Registration Under Odisha Shops and Commercial Establishments Act

Offices belonging to local authorities, Central or State Government.
Offices under Reserve Bank of India.
Shops/Establishments belonging to the owner without that person employing anyone or any establishments where only family members of the employer are employed.
People who are employed in confidential posts or who occupy management positions.
Establishments working for a charity where no profit is gained.
Shops/Establishments for treatment of sick and people with mental issues.
People directly occupied in complementary jobs such as clerks are involved in goods' despatch.
Certain libraries where lending books and magazines don't involve any gain apart from making profits for educational or charitable purposes.

How to Register Shops and Establishments in Odisha Online?

Following are some steps that help an employer to apply for registration online:

Step 1: Go to the official website of the Odisha government.

Step 2: Click the Single Window Portal Block and sign in to 'Investor Login'.

Step 3: Existing APAA/CSR Portal/CIF/GO-Iplus users can log in using the same details. New users need to register by clicking the 'Register Now' option.

Step 4: After filling out the registration form, they must verify themselves via OTP received in registered contact numbers.

Step 5: A dashboard appears, and from a list of services, choose to apply for Registration of an establishment under Odisha Shops and Commercial Establishment Act.

Step 6: Fill up a form with the required information and submit it. Upload scanned documents in fields as required.

Step 7: Click on the 'Pay Now' option after submission. The page will redirect you to a payment gateway. Pay using Debit Card, Net Banking, Credit Card or other available payment methods.

Step 8: You will be redirected to the bank's payment portal if you make a payment online. For offline payments, you can generate Challan for the transaction by opting 'Generate Challan' section.

Step 9: You can view a downloadable e-Challan receipt mentioning the fees to be paid. Take a copy of the Challan to your nearest bank’s branch and make payment.

After successful payment, you will get a transaction ID, application number and Challan reference ID. An SMS and Email notification is also generated to you, mentioning all details.

Documents Required to Register Under Odisha Shop & Establishment Act

Eligible candidates under each establishment category must submit the following documents while registering under Odisha Shops and Establishments Act:

An employer of an establishment needs to exhibit his establishment’s name in proper Odia language. This needs to be mounted in front of their establishment on a sign board. You can incorporate other languages too.
Enter the postal address of the establishment for which the licence is required
Provide the date of commencement of activities in the establishment
Certificate of Incorporation/Memorandum or Articles of Association/Agreement of LLP
Copy of PAN card
Document of consent of partners or resolution of board of members.
Proper notice of weekly off-day in Form-7.
A notice of the daily working hours of all employees via Form-5.

Employers require these documents to register their shops and commercial spaces in Odisha. However, per the timeline, online registration of shops and establishments in Odisha is furnished within 15 working days from the application submission date. If there are queries on an application, the department can raise it within 7 working days after receiving an application.

Registration Fees for Shop & Establishment in Odisha

The fees required for renewal or registration of the shop or commercial establishment in Odisha are as follows (applicable January 2020-December 2024):

Number of Employees	Fees
1-9	Rs. 168.75
10-19	Rs. 450.00
20 or more	Rs. 675.00

Steps to Check Application Status of Registration for Odisha Shop and Establishment

To track the status of the Odisha Shop and Establishment application, follow these simple steps:

Step 1: Visit the official website of Odisha government and click on the services section from the Menu bar.

Step 2: Enter the acknowledgement number and then click on ‘Track Application status’ to view the status.

Validity of Registration Certificate for Shop and Commercial Establishment in Odisha

The registration certificate provided will be valid till it is reversed or concluded. This is done by generating an undertaking in Form-16 addressed to the District Labour Officer of that area.

Employers who wish to renew their registration need to apply two months before the expiry date of this registration. Not adhering to the time will lead to an additional fee of 25% more than the original payment.

Rules of Odisha Shops and Commercial Establishments Act

Below are some mandatory rules every owner registering under this Act should follow:

1. Working Hours

No employee in any shop or establishment is allowed to work more than nine hours a day and forty hours a week. This means the total number of working hours adding overtime should not exceed ten hours on any day. Exceptions are provided to account and stock-taking days.

Additionally, the total overtime hours of any employee must not exceed fifty during three months. No child between twelve and fifteen should be allowed to work in any establishment for more than five hours a day.

2. Wages for Overtime Work

Extra wages should be given to employees working more than nine hours daily in any establishment. This means extra payments are to be paid if they work more than forty-eight hours weekly.

3. Rest and Intervals

The working hours of any establishment each day shall be fixed in such a way that no time should exceed five hours. Employees should work not more than five hours and have at least a half an hour interval or rest. Additionally, the spread-over of any employee, including the interval or rest should not be beyond twelve hours in a day.

4. Opening and Closing Hours

The State Government, after enquiring, must fix the time at which the establishments shall be opened or closed in a particular location. Establishments should adhere to these opening and closing hours.

5. Weekly Holidays

Every shop or establishment must remain closed one day a week, wherein the employer should communicate the same to his or her employees. Also, an owner shall not alter the day more than once in three months and shall notify the same.

Employees should be given one day of holiday in a week and should not be called into the establishment or any other location related to the establishment during holidays. Additionally, there shall be no salary deductions done to any employee in any establishment due to the holiday given.

6. Annual leave with Wages

All employees who have worked for two hundred and forty days in any establishment during their one-year tenure should be provided leave with wages calculated specifically. This should also adhere to company terms and policies and the contract signed between an employee and the employer.

7. Wages During Leave Period

As per norms and rules of the Act, an employee should be paid wages equal to the daily average of their total earnings. This will be calculated as per the days he worked during the month immediately before taking leave. Also, this is exclusive of overtime and bonus and includes allowances.

Now that you know the rules let us understand how it is beneficial.

Benefits of Registration Certificate for Shops and Commercial Establishment in Odisha

A commercial establishment's owner can avail of the below benefits after registering under the Odisha Shops and Commercial Establishments Act:

They will get information regarding the status of approved proposals, proposed investments and the applications due.
They also cater to an online feedback platform that allows them to address the issues faced by investors within time.
Present online systems such as Central Inspection Framework and Automated Post Allotment Application, GO Iplus, and CSR portal can be integrated into a Single Window. This helps make the platform a one-stop shop for an array of services.

All these rules are to be adhered to by the owners of establishments. Knowing all details about the registration of shops and establishments in Odisha is beneficial. This is because it will help to smoothen the registration and the related processes.

Frequently Asked Questions

All

What are the criteria for applying to Odisha Shops and Establishment?

An employer of an establishment or a shop located within the Municipal Corporation or NAC area and employing one or more employees can apply. This has to be done within 30 days of commencement of the establishment.

What is Odisha Shop and Establishment Act 1956?

The Odisha Shops and Establishment Act is designed to regulate the working hours, payment of wages, terms of service and related work conditions of employees employed in an establishment or a shop in Odisha.