All About Shop & Establishment Registration in Madhya Pradesh

Shops and Establishments Labour Licence Registration has become a mandate for any business activities in India. Your business will not be considered legal unless you register under this law. This registration helps you obtain a Gumasta licence if you are a business owner in Madhya Pradesh?

Are you looking to obtain the Gumasta licence MP for your shop? Keep reading this article to know the registration process.

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Eligibility Criteria to Register Under Madhya Pradesh Shops & Establishment Act 1958

Any society registered to make a profit from citizens in MP is required to register for this licence. The following establishments must register under the Madhya Pradesh Shops & Establishment Act 1961.

Shops and commercial establishments
Residential hotels, restaurants and eateries
Theatres and other places of public amusement
Advertising, commercial and commissioning agency
Insurance, joint stock and bank broker’s offices

Establishments Exempted From Registration Under the Madhya Pradesh Shops & Establishment Act 1958

This act's provisions do not apply to every business or establishment. The exempted establishments do not need to register for an MP Gumasta certificate. These are as follows.

People occupying management positions or employed in a confidential capacity
Those who are associated with professions like a traveller, canvasser, watchman or a caretaker
Offices under the Union or State Government or of local authorities
Financial institutions and offices under the Reserve Bank of India, State Bank of India and Life Insurance Corporation
Fairs, bazaars and exhibitions for selling products for charitable purposes
People associated with the collection, delivery or conveyance of goods
Stalls, refreshment rooms and diners on the railway
People associated with preparatory or complementary work

How to Register Shops and Establishments in Madhya Pradesh Online?

The registration process for Madhya Pradesh Shops and Establishment Act is quite simple. You can do it with the following steps.

Step 1: Visit the official website of Shram Sewa Portal. Go to the “Shops & Establishment” icon.

Step 2: Click on “New Registration”. It will redirect you to an online form.

Step 3: Fill out this form with all your details. After submitting it, you receive a username and password on the registered email and contact number.

Step 4: Now, log in with your credentials. Proceed to the online registration form and fill out all its fields.

Step 5: Take a challan from any specified bank based on the number of employees. Attach all the required documents and collect your receipt number.

Step 6: Submit the physical copy of your online application form and the documents to your nearest regional circle.

You must wait for the Senior Labour Inspector to inspect your application and check all the details. They will then issue the certificate once this process is complete.

Documents Required to Register Under Madhya Pradesh Shop & Establishment Act

You must wonder about the documents required for a Gumasta licence in MP. These might differ from one application to another based on the establishment type. The following table will give you a clearer idea about it.

Type of Establishment	Documents Required
Sole Proprietorship	ID Proofs (Aadhar card/ PAN Card), electricity bill as an address proof, application form in the right format, authority letter for business, proof of property ownership, rental agreement
Partnership Firm	Partnership deed, partner’s ID and address proof, partnership Firm’s PAN, required fees for a partnership firm
Private Limited Company	Memorandum and Article Of Association, Certificate of Incorporation, Company Director’s ID and address proof

Registration Fees for Shops and Establishment in Madhya Pradesh

Now that you know the purpose of a Shop Establishment licence of MP, you must be wondering about the fees required in this process. It is depicted in the following table.

Number of Employees	Registration fees
No employee	₹ 100
1 to 3	₹ 150
3 to 10	₹ 200
More than 10 employees	₹ 250

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

Now, the question is how to download a Gumasta licence online in Madhya Pradesh. For this, you need to check the status of your form. If the inspection is complete, you will download it from the portal. The following steps will help you to check its status.

Step 1: Visit the official website of the MP Labour Department (MPLD). It will redirect you to the download page.

Step 2: Enter your registration number after submitting the application form. Next, enter the original password and captcha code.

Step 3: Click on "Download Certificate". It will open a new screen, including your application's details.

Step 4: You can see your status from the "Current Status" tab. If it shows "Certificate generated, " you can download your certificate from this page.

What Are the Important Rules And Laws Of the Shop and Establishment Act in Madhya Pradesh?

Now that you know the steps for online registration of Gumasta licence MP, the following rules and regulations regarding the Shop and Establishment Act will benefit you.

1. Employment Rules for Women, Children and Young People

According to this law, children should not be allowed to work in any establishment. They should neither be an employee nor in any way associated with an organisation.
Women and young people should have fixed work timings. They should not have to come to work before 7 am or after 9 pm.
Young people should not work for more than five hours in an organisation.
Women and young people should not have to work in any dangerous circumstances.

2. Working Hours

The working hours of employees are 9 hours a day for shops, 10 hours a day for commercial establishments and 48 hours a week. If employees work beyond prescribed hours, the employer must pay them for overtime. Moreover, the working periods of employees must be fixed so that the working period does not go beyond 6 hours without an interval.

3. Weekly Holidays

Every establishment must remain closed at least once a week, which they can choose for themselves. Employers should not call the employees on that day to work. If the same day is a public holiday, then the company can keep the shop open on that day and shift the holiday to another day in the week.

If the employees get one paid holiday weekly, then such companies will be exempted from the provisions of section 13.

4. Leave Policies

Employees should receive the following types of leaves from their employers.

Every employee is subject to a privilege leave of a month after 12 months of continuous employment.
They should receive casual leaves every year, not for about 14 days in total.

Employees should receive wages according to the rates equivalent to the daily average of his/her wages for the working days. They will receive the same wage for the paid leaves.

5. Employee Rights

Employees will have the following rights while working for an establishment.

They must receive twice their original wage when working overtime.
No employee should have to work on the days of their leaves or pre-decided holidays.
Employees should receive a notice period of three months or more before a dismissal.
There should not be any suit, prosecution or other legal proceedings for any employee regarding an activity done with good intention.
Employers must provide a provident fund amount for employees, which should not exceed six and a quarter percent of his/her wages.

6. Record Management

Employers must maintain records in proper registers and documents regarding the following factors.

Details of employment
Employee details and age
Over time work and wages
Leave policies and structure
Weekly closed day
Form L notice of holidays
Register of payment of wages
Inspection visit book
Attendance cards

7. Minimum Wage

The minimum wage structure according to this act is as follows.

Class of employment	Total wage per day	Total wage per month
Unskilled	₹351	₹9,125
Semi-skilled	₹384	₹9,982
Skilled	₹437	₹11,360
Highly skilled	₹487	₹12,660

8. Registration of Establishments

Every establishment that is eligible under this act must register under this licence within 30 days of starting the business. It should include the details like address of the firm, names and details of the owners and partners, category of establishment, etc. The employer must inform the inspector regarding any change in this information.

Benefits of Registration Certificate for Shop and Establishment Registration in Madhya Pradesh

A shop and commercial establishment's owner can avail the following benefits after availing the Gumasta Licence in Madhya Pradesh:

Legal authority: This licence offers legal authority to business owners to conduct their business and generate profitability. They will be able to avoid the possible hurdles in law and order to ensure smooth business operations.
Better wages and leave management: When business owners obtain this licence, they are legally bound to follow the rules of the Shop and Establishment Act. As a result, employees will receive better wages and working hours. Employers will also be able to manage their leaves properly.
Ethical business practices: As per the requirements of this law, business owners must avoid unethical business practices. They should provide the right wages based on working hours and follow the laws regarding child labour. This way, the government will be able to handle unethical practices.
Hassle-free inspections: If you have a licence, it already ensures that you are following the laws and being ethical. This reduces the frequency of inspection from state government and local municipalities. As a result, you can continue business operations without facing such inspections regularly.
Growth promotion: This licence increases the commitment and interests of the business owners towards their business. It transforms a shop into a legal entity, solidifying its market position. This way, the business owners can improve their activities and efforts.

Therefore, as this article pointed out, every business owner needs a Gumasta licence in Madhya Pradesh to continue their business activities. This licence can also help business owners to maintain smooth operations and follow all the legal regulations. The registration process is simple; you download the certificate from the official website.

Frequently Asked Questions

All

What is the validity of the Establishment Registration?

The validity of an Establishment Registration certificate differs from one state to another. In MP, it usually starts from five years, and it might increase based on the type and range of business.

Can I use my personal PAN card while registering for a Gumasta licence?

If the business is a sole proprietorship, you can use your personal PAN while completing your registration for a Gumasta licence. However, for partnership or Private Corporation, you need to use the firm's PAN.