All About Shop & Establishment Registration in Uttar Pradesh

shop establishment up — (source: taxrobo)

Every business owner must have an official licence to rightfully function in any state. The shop and establishment Act was launched in 1962 with one sole purpose, to protect the rights of employees.

The Act provides rules and regulations regarding work hours, wages, terms of services, rest intervals, overtime work, opening and closing time, holidays, leaves, maternity leaves, etc. Read on to know more about the process of shop and establishment registration in UP.

Eligibility Criteria to Register Under Uttar Pradesh Shops and Establishment Act 1962

The owner of any shop or commercial establishment where any services are offered to customers must register for this licence. This includes offices, warehouses, or any space where wholesale or retail trade happens. The establishments are given a time for three months within its commencement or three months within the initiation of this Act, whichever comes later.

Establishments Exempted From Registration Under the Uttar Pradesh Shops and Commercial Establishment Act

Individuals who work in confidential, supervisory or managerial positions in any shop or commercial establishment with more than five employees.
People who work intermittently, as a traveller or canvasser.
Government offices
Offices of local authorities
Hospitals and asylums
An employer’s family members

How to Register Shops and Commercial Establishments in Uttar Pradesh Online?

Individuals can follow this step-by-step guide to register their shops and commercial establishments in Uttar Pradesh.

Step 1: Visit the official portal of the labour department of Uttar Pradesh government.

Step 2: Owners of the businesses have to create a profile in this portal and then use their credentials to fill in the details.

Step 3: Applicants have to upload all the supporting documents (which are listed below) to complete the registration process.

Step 4: Pay the required processing fees to complete this process.

Step 5: After successfully paying the registration fees, applicants need to provide their challan details, bank name and date of payment in the application form.

All these forms then go through a review, processed by a labour enforcement officer. After verifying and scrutinising these details, they issue a shop and establishment licence.

Documents Required to Register Under the Uttar Pradesh Shop & Commercial Establishment Act

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

Type of Establishment	Documents required
Sole Proprietorship	• Aadhar card • PAN card • Proof of bank account • Registered office proof
Partnership Firm	• PAN card • Original copy of partnership deed • Aadhar card of applicant • ID and address proof of all partners • Declaration affidavit certifying correct application • Supporting documents for registered office • Rent agreement for rented space or NOC by a landlord
Private Limited Company	• PAN card • Address proof of the Director • Registered office address proof • Registered document for the office space • Notarized copy of the lease or rent agreement

Registration Fees for Shops and Commercial Establishments in Uttar Pradesh

According to shop act registration in UP, applicants have to pay the following fees as per their shop or commercial establishment category.

Number of Employees	Fees for Shops
No employees	₹ 40
1 to 5	₹ 200
5 to 10	₹ 300
11 to 25	₹ 500
More than 25	₹ 1000

Steps to Check Application Status of Registration for Uttar Pradesh Shops and Commercial Establishment

Applicants can view the status of the shop and establishment registration in UP by following the mentioned steps.

Step 1: Visit the official website of the Labour Act Management System of Uttar Pradesh

Step 2: Click on verify licence or registration details button

Step 3: Select “Uttar Pradesh Shops and Commercial Establishment Act, 1962”

Step 4: Feed in the Registration Number

Step 5: Check the status of the application by clicking on the option "under scrutiny"

Validity of Registration Certificate for Shop and Commercial Establishment in Uttar Pradesh

The validity of the shop act licence in UP is for five years, after which they require renewal. If the licence is not renewed on time, it can cause several legal issues.

Rules and Laws of Uttar Pradesh Shop and Commercial Establishment Act

Here is the list of provisions declared under the shop and establishment act in Uttar Pradesh.

1. Working Hours

Any shop or commercial establishment cannot open earlier and close later on any day. Employers must not allow any employee to work beyond their specified working hours.

Five hours for a child
Six hours for a young person
Eight hours for any other employee

However, if other employees are allowed to work outside their fixed time, it must not exceed 10 hours a day. The only day that is exceptional in this regard is the day of stock-taking or making of accounts.

2. Close days and Holidays

Each employer is allowed to close his shop or establishment for one day a week and on public holidays.
Altering a close day on a public holiday needs the approval of the authority appointed on behalf of the State Government.
Except for watchmen or caretakers, every employee is allowed a holiday on the close day, which is a public holiday and one day each week.

3. Annual Leaves

Those who have been working under the same employee for a year and more are entitled to 15 days of earned leaves for each year. This is in addition to the public holidays and close days.
Caretakers or watchmen who have been working continuously for the same employer are permitted 60 days of earned leaves in a year.
An employee who has worked for six months and more is eligible for 15 days of sick leave in a year.
If an employee does not avail of any earned leaves, it will get added to the leave allowance for the following year. However, a particular employee's total number of earned leaves must not exceed 45 days.
Employees can only avail of these leave benefits if and only applied for.

4. Wages Distribution

Every employer must fix a wage period, and after its expiry, they are entitled to pay the set remuneration to their employees.
The wage period must not exceed by one month.

5. Employment of Children and Women

Children below the age of 14 are prohibited from working in any establishment except if appointed as an apprentice.
Women and children are not permitted to work at night in any given circumstances.

6. Maternity Leave and Benefit

No employer can knowingly allow a woman to work in a shop or commercial establishment within the first six weeks after delivering a child.
When a female employee has applied for maternity leave, she is entitled to get the benefits stated under this Act, but not to any wages.
A woman employee can produce seven clear days' notice to get relieved from her duties. This can be availed for six weeks preceding the delivery date.

7. Miscellaneous Rights of Employees

The working hours must be set in order to grant employees an hour for rest and not more than five hours of continuous work.
A written notice specifying the close days must be put in a prominent space of the shop or establishment.
If the employer terminates an employee or the employee resigns from the role; the employer is liable to pay the due amount of the earned leave.

8. Record Maintenance

According to this Act, an employer must maintain all the registers and records of the establishment. In addition, employers must display notices and required information in a clear and visible space.

9. Termination of Employment

Employees other than those who are engaged for a specific time or on leave can terminate their employment. In order to do so, they must produce a notice of thirty days or any specific time as mentioned in their employment terms.
If any employee fails to fulfil the previous provision, their unpaid wages of fifteen days may be forfeited to his employer.

10. Violation of this Act

Anyone who fails or violates any provision or rules made for this Act shall be considered guilty of an offence.

Benefits of Registration Certificate for Shop and Establishment Licence in Uttar Pradesh

Mentioned below are the benefits of shop act registration in UP.

1. Official Recognition

Obtaining the shop and establishment licence provides legal and official recognition to the business. In other words, it solidifies the base of the business in the market. Moreover, there are numerous competitors and having a legal licence makes it more trustworthy among the target customers.

2. Proof of the Business

The licence for shop and establishment act in UP is proof of a business. This is a very crucial document which helps the owner carry out the following formalities:

Open a bank account for safekeeping
Sign-up for new investments and
Avail of the government benefits provided to the business owners

3. Hassle-Free Inspection

The state government and local municipality can conduct regular inspections to check whether the entity is working as per the protocols. Having the licence makes this process less complicated and does not disturb the work efficiency. Moreover, the Shop Act Licence ensures there would be less diligence and auditing.

4. Enforce Better Management

Businesses in unorganised sectors are unaware of government policies regarding shop management, wages distribution etc. Once an establishment obtains a licence, they are bound to maintain government guidelines which ensure systematic management.

5. Avoid Unethical Business Practice

There are many shops and entities that are continuing to function using unethical practices. For instance, hiring child labourers. The shop and establishment act prohibits such practices, and those who have the licence under this Act maintain business ethics.

If you are planning to establish a business, make sure to apply for shops and establishment registration in Uttar Pradesh and follow all the guidelines of this Act. This not only enlightens you about your rights and benefits as a business owner but also helps for a seamless registration.

Frequently Asked Questions

All

Is shop and establishment licence mandatory in Uttar Pradesh?

Under the Shop and Establishment Act of 1962, having a licence for any physical entity where trade occurs is mandatory. Anyone who owns a business can visit the official website of the UP government labour department and register themselves.

Does the shop and establishment licence permit business functioning from anywhere in India?

The licence for a shop and commercial establishment is legal proof which gives the business owner the right to conduct work in a particular state. Hence this registration certificate is provided by the state government.