All About Shop and Establishment Registration in Tamil Nadu

The Tamil Nadu Shop and Establishment Act, 1947, directs the conduct of business establishments and shops in Tamil Nadu. Every shop and establishment in Tamil Nadu must acquire a Shop and Establishment licence to operate. Accordingly, an eligible business entity must register under this Act to obtain this licence or certificate.

This piece highlights the details of the shop and establishment registration in Tamil Nadu. So, if you are interested to know about it, keep reading.

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Eligibility Criteria to Register Under Tamil Nadu Shop and Establishment Act 1947

Every establishment or shop that performs business and trading activities or provides services within Tamil Nadu qualifies to register under this Act.

Commercial establishments that are eligible for registration under Tamil Nadu Shop and Establishment Act include residential hotels, restaurants, eating houses, retail shops, theatres, and other public places of entertainment and commercial establishments as specified by this Act.

Establishments Exempted From Registration Under the Tamil Nadu Shop and Establishment Act

Following are the persons and establishments which do not require registration under this Act:

Individuals employed in a management position in any establishment.
Establishments under the authority of State and Central Governments, RBI, local and cantonment authorities
Establishments in oil fields and mines.
Individuals who are engaged in work that involves travelling and those who work as caretakers and canvassers.
Establishments in areas where temporary festivals or fairs occur for not more than 15 days at a time.
Establishments that are not factories as per the Factories Act, 1948, and are administered by a separate law enforced in the State for the time being.
Guidelines related to closing and opening hours of shops and holidays, that are not applicable for hospitals, druggists or chemists, or institutions that treat sick patients or other shops as notified periodically by the State Government.

How to Register Shops and Establishments in Tamil Nadu Online?

Here is a step-wise guide on how to do shop and establishment registration in Tamil Nadu online:

Step 1: Visit the official portal of the State Department of Labour, Government of Tamil Nadu.

Step 2: Select the appropriate registration option to enter the details like the employer's and his or her establishment's name, the establishment's postal address, category, number of employees, and the date of commencement of operation of the concerned establishment.

After submitting the registration, the inspector in charge will check the registration. If the details entered are correct, then the applicant will get the registration certificate and begin their business activities.

Documents Required to Register Under Tamil Nadu Shop and Establishment Act

After applying for a shop licence online in Tamil Nadu, take a look at the following documents that must be submitted during registration:

PAN card in case of a private limited company.
Article of Association and Memorandum of Association in case of a private limited company.
Form 18 and 32
Incorporation Certificate of Company
Address proof and identity documents of every director
Rental agreement (if any)
Payment receipt, challan or transaction receipt
Commercial address proof

Registration Charges for Shop and Establishment in Tamil Nadu

Applicants must pay registration fees based on the number of employees working in their organisation. Keeping this in mind, take a look at the registration fees:

Number of Employees	Fees
1 to 15	₹ 6,500
6 to 11	₹ 9,000
12 to 21	₹ 15,500

Validity of Registration Certificate for Shop and Establishment in Tamil Nadu

The validity of the registration certificate is 5 years. Individuals can renew it once every 5 years against paying appropriate renewal fees.

Rules of Tamil Nadu Shop and Establishment Act

Take a look at the major guidelines mentioned in the Tamil Nadu Shop and Establishment Act:

1. Prevention of Child Labour

According to the Tamil Nadu Shop and Establishment Act, no child is eligible to work in any establishment. A 'child' here refers to an individual who has not reached 14 years of age.

Besides, no young individual can work before 6 am and after 7 pm. in any establishment. A young individual can work 42 hours a week and seven hours a day. Here, 'young person' refers to an individual who is not a child but is below 17 years.

2. Opening and Closing Hours

No employee is required to work beyond 48 hours a week and 8 hours a day, and if he or she does, it should not be without overtime wages. Moreover, every employee of an establishment or shop must have a one-day holiday every week.

3. Guidelines Related to Health and Safety

Every shop and establishment in Tamil Nadu must follow the guidelines related to safety and health mentioned in Tamil Nadu Shop and Establishment Act:

Cleanliness

Each establishment's premises should be clean and free from effluvia caused by privy, drain and other nuisance. There should be arrangements to clean establishments at regular intervals.

Lighting

Every establishment's premises should have sufficient lighting during working hours.

Ventilation

There should be a proper ventilation system on every establishment's premises.

Precautions Against Fire

Every establishment must take precautions against fire.

4. Holidays

Individuals employed in any establishment or shop are allowed to have, after providing services for 12 months continuously, 12 holidays with wages in the following 12 months.

5. Wage Payment

Employers shall pay wages to the individuals whom they have employed. Every employer must fix a date when those wages are to be payable. The periods of wage payments can exceed one month.

Benefits of Registration Certificate for Shop and Establishment in Tamil Nadu

Owners of shops and establishments can enjoy the following benefits after acquiring a registration certificate under Tamil Nadu Shop and Establishment Act:

Registration certificates serve as legal proof for a business entity to work in a particular state.
Business entities can open current accounts easily after acquiring a registration certificate.
Establishments or shops having registration certificates ensure quick and hassle-free inspection conducted by the local municipality and State Government.
Shops and establishments having registration certificates can enjoy several government benefits.

To conclude, it is compulsory to acquire a registration certificate for any establishment owner to operate within the jurisdiction of Tamil Nadu. So, remember these above pointers about shop and establishment registration in Tamil Nadu to go through a hassle-free registration process.

Frequently Asked Questions

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When should establishment and shop owners submit their application for registration under Tamil Nadu Shop and Establishment Act?

Shop and establishment owners must submit their application for registration along with appropriate fees within 30 days of commencing business operation.

Within how many days establishment owners can notify about changes in the information provided during registration?

Establishment and shop owners can notify the inspector about changes in details provided during registration within 15 days of the occurrence of such changes.