Premium starting ₹150
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Premium starting ₹150
94% Claims Settled (FY 24-25)
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.
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.
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.
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
|
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 |
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 |
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"
Here is the list of provisions declared under the shop and establishment act in Uttar Pradesh.
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.
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.
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.
Anyone who fails or violates any provision or rules made for this Act shall be considered guilty of an offence.
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.
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:
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.
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.
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.