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    All About Shop Licence Registration in Punjab

    In Punjab, the Shops and Establishments Act requires one to register his or her business with the State's Department of Labour. This Act governs the working and employment conditions in shops and other commercial establishments.

    Keep reading to get a thorough knowledge of shop licence registration in Punjab.

    Team Digit

    Eligibility Criteria to Register Under Punjab Shops and Commercial Establishments Act 1958

    All companies operating out of any location or shop in Punjab are required to register under this statute. Additionally, within 30 days of opening a new business, every employer in Punjab must file an application for their shop or any other type of commercial institution.

    This shop licence act in Punjab regulates all stores, lodging facilities, eateries, neighbourhood restaurants, city theatres, venues for public entertainment, and other commercial establishments; as such, all of these must register as shops and establishments in accordance with the law.

    Establishments Exempted From Registration Under the Punjab Shops and Commercial Establishment Act

    Any local authority, railway administration, offices of or under the State or Central Government, The Reserve Bank of India

    • (a) Any air service, telephone or postal telegraph railway service, water transport service, tramway,
    • (b) Any system of public sanitation conservancy or any industry business or undertaking which supplies water, power, and light to the public
    • (c) Railway dining cars
    • (d) Legal counsel's offices
    • (e) Any individual working for any establishment listed in paragraphs mentioned above (a) to (d)
    • (f) Any individual whose working hours are controlled by or pursuant to the Factories Act of 1947, with the exception of section 7's subsections (3), (4), and (5) this Act insofar as they pertain to factory employment
    • (g) Any person whose work is inherently intermittent
    • (h) Establishments of petition writers and stamp vendors

    How to Register Shops and Commercial Establishments in Punjab Online?

    To register for a shop licence in Punjab online, an individual has to follow the steps mentioned below -

    Step 1: The first step is to visit the official website of Punjab labour. Individuals logging in for the first time have to create a login ID before the registration process. This login creation is an OTP-based process.

    Step 2: Next, by checking the appropriate box, an individual has to choose the suitable licence from the list displayed on the webpage.

    Step 3: Then, an individual has to choose the appropriate jurisdiction Area, then the ‘Start filling Application’ option.

    Step 4: The next step for individuals is to fill out Form-B for Shop and Commercial.

    Step 5: Individuals can find the following tabs at the bottom of the electronic form.

    • Next - This tab lets an applicant save the data he or she submitted, and the summary page will appear.
    • Previous – This tab shows the page where the licences are provided and lets an applicant go back to it.

    Step 6: In the next step, individuals have to press the Next button and complete Form F.

    Step 7: Individuals have to upload necessary papers via the 'Upload Documents’ option.

    Applicants will no longer have the chance to edit this electronic form after they select the ‘Lock and Submit’ option. If applicants want to make any changes, they can redirect the edit tab to an editable version of the electronic form.

    Documents Required to Register Under Punjab Shops and Commercial Establishments Act

    Following are the necessary documents that one will require to register under the Punjab shops and commercial establishments act.

    Proof of address of the business/shop location

    • A photo of the shop or other place of business's front door
    • A photo of the interior of the store or other commercial space
    • Identification documentation of owner/director
    • Scanned copy of applicant's signature
    • A copy of the lease agreement or rent agreement
    • A copy of the resolution authorising the partner or director to apply for shop and establishment act registration, properly stamped on the firm letterhead.
    • Power of attorney
    • Memorandum of organisation
    • A list of the company's directors
    • PAN cards of association and directors

    Registration Fees for Shops and Commercial Establishment in Punjab

    According to the official website of the Punjab Government, no fee is chargeable to get a registration of shop/establishment in the State.

    Validity and Renewal of Registration Certificate for Shop and Commercial Establishment in Punjab

    A registration certificate for Shop and Commercial Establishment in Punjab is valid for about a year. business owners need to renew it once it is expired. The renewal deadline for the registration certificate is the 31st of March each year. However, there is a grace period of 30 days for the certificate renewal. The employer needs to communicate any changes to any information in his statement required by this section to the prescribed authority in the specified form within seven days of the change taking effect. 

    The authority must update the establishment record in accordance with the notice after receiving it and determining that it is accurate. If required, the authority must also revise the registration certificate. The employer must give written notice to the required authority within ten days of closing the establishment.

    When the authority receives the information and ensures that it is not accurate, it will strike the name of the establishment from the list of establishments and revoke the registration certificate.

    Rules of Punjab Shops and Commercial Establishments Act

    The following are the rules under the Punjab shops and commercial establishments act.

    1. Employment of Young Persons

    • The establishment must set up a work schedule for a young person so that it does not exceed seven hours per day, including his rest period.

    2. Payment of Overtime

    • Section 16 of the Act states that the employer must pay the employee for overtime on the next payday.

    3. Maternity Benefits

    • According to Section 31 of the Act, a woman is entitled to maternity benefits at a rate equal to her average daily earnings over the three months preceding the six-week period prior to the day of delivery.
    • After one week from the date of demand following delivery, a woman employee will receive the maternity benefit that is due to her. If the employer doesn't make the payment within the allotted time, he must pay the employee a penalty equal to 50% of the maternity benefits.

    4. Health

    Every establishment's premises must be-

    • Kept clean and free of debris accumulation;
    • Kept adequately lit throughout all working hours;
    • Properly ventilated to allow enough air and light into the premises; and
    • White-washed and varnished at least once per year, with a notice indicating the date of the most recent white-washing and varnishing displayed on the premises.
    • The establishment has to install an efficient drainage system and maintain it when a facility's floor is susceptible to getting wet during a production operation.
    • The organisation has to also implement appropriate measures to ensure that the people working there have a sufficient supply of drinking water. The water supplied in this manner must be safe for human consumption, and it must be kept covered and stored in a protected area.

    5. Safety

    • The organisation has to provide appropriate equipment for cutting power from operating machinery in an emergency. It must be kept in good working condition in every business where industrial processes are conducted using electric power.
    • The establishment should not allow any employee to work near moving equipment or a belt while wearing loose-fitting clothing. Instead, the employer shall provide tight-fitting clothing for this purpose.

    Benefits of Registration Certificate for Shops and Commercial Establishment in Punjab

    The most prominent benefits of this registration certificate for  Shops and Commercial Establishments in Punjab are -

    • Employers can open a bank account in the company's name with ease if they have Shop and Establishment registration in place.
    • Having such a licence enables the employee to easily register for both the sales tax and the services tax.
    • The employee has access to state-level tenders thanks to their State and registration licence.
    • Increases a company's legitimacy, which draws in more creditors, clients, and suppliers.
    • Entities holding this licence can anticipate easy access to bank loans.

    That is all for shop licence registration in Punjab. Having knowledge about the same will help individuals streamline the process more efficiently and smoothly.

    Frequently Asked Questions

    Is it illegal to not get a shop licence in Punjab?

    Yes, since it is mandatory for a business to get a licence, any business running without it would be considered illegal and may have to pay heavy penalties.

    Yes, since it is mandatory for a business to get a licence, any business running without it would be considered illegal and may have to pay heavy penalties.

    What is the difference between the Shops Act and the Factories Act?

    The Shops Act is applicable to shops where any service is provided and any commercial establishment where any form of trade or goods takes place. While on the other hand, the Factories Act is applicable to a factory where the goods are manufactured.

    The Shops Act is applicable to shops where any service is provided and any commercial establishment where any form of trade or goods takes place. While on the other hand, the Factories Act is applicable to a factory where the goods are manufactured.

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    Last updated: 20-05-2025

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