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    All About Shops & Establishments Act in Telangana

    A successful business needs planning, enthusiasm, and the, most importantly, the legal necessities. First, after deciding to do a particular type of business, you need to check all the compulsory guidelines of it. Among all requirements, getting a licence is of utmost importance.

    The Shops and Establishment Act in Telangana is a regulation that provides shop owners with a basic licence. In addition, it also determines the wages, the working hours of the employees, and other allied things that a business owner needs to keep in mind to run a business in the state.

    Eligibility Criteria to Register Under Telangana Shops and Establishment Act

    The Shops and Establishment Act in Telangana is a mandatory activity for all business owners who want to set up a business in the state. Therefore, any state shop or commercial establishment must register under this Act.

    Hence, "shop" means any place where business execution is made and customers are facilitated. Examples can be offices, warehouses, go-downs etc. On the other hand, establishments or commercial establishments are any areas where trade or profession is executed for profit. Examples can be restaurants, public entertainment places etc.

    Therefore, if any resident of Telangana wants to start these above-mentioned businesses, then he or she will need a shop and establishment licence in Telangana.

    As you already know about the eligibility criteria to open the account, the process of registering your business comes next. The following segment will discuss this comprehensively.

    How to Register Shops and Establishments Act in Telangana Online?

    The step-by-step procedure to register shops and commercial establishments in Telangana is as follows,

    Step 1: Open the official website of the Labour Department of the Telangana Government

    Step 2: A page consisting of the 'Register yourself" button will appear. Click on that.

    Step 3: Fill up the fields with the required information

    Step 4: Tap on the login button after completing the registration process

    Step 5: Next, fill the Form 1, which is the main document

    Step 6: Attach the digital copies of the required documents

    Step 7: Select the number of employees and pay the registration fees accordingly

    Step 8: The registration gets completed, and Form II will be generated

    This digital registration process is hassle-free and effective because you will get notifications immediately.

    In addition, there are certain documents that individuals need to submit to register their businesses. The next segment will discuss this.

    Documents Required for Shops and Establishments Registration in Telangana

    The documents necessary for acquiring the shop licence in Telangana are as follows -

    • Form No 1, which is the registration form for the licence
    • A photograph of the board with the name of the shop or establishment written in Telugu
    • Number of workers or employees
    • For a rented shop or establishment, a rental deed is needed
    • Business owner's identity proof and a recent passport-size photograph
    • Incorporation certificate
    • For the companies, AOA or MOA 

    Therefore, with the above-mentioned documents, you can register under the Act and continue your business legally without any further issues.

    Registration Fees for Shops and Commercial Establishment in Telangana

    Applicants need to follow the fee structure mentioned below to complete this registration process in Telangana -

    Number of Employees

    Fees

    No employees

    ₹ 100

    1-5 employees

    ₹ 500

    6-10 employees

    ₹ 1,000

    11-20 employees

    ₹ 2,000

    21-50 employees

    ₹ 5,000

    51-100 employees

    ₹ 10,000

    More than 100 employees

    ₹ 10,000 + ₹ 5,000 for additional 50 persons

    Apart from knowing the fee structure, you should also be aware of the online tracking procedure of the application status and licence. The following segment will discuss the necessary steps.

    How to Check Application Status of Registration for Telangana Shops and Commercial Establishment?

    The steps to check the application status of registration for Telangana Shops and Commercial Establishment are as follows -

    Step 1: Go to the official website of the Telangana Labour Department.

    Step 2: Log in successfully with your credentials.

    Step 3: Find the "track application status" on the home page.

    Step 4: Input the unique application reference number that was provided at the time of registration.

    Step 5: Fill the Captcha and get the tracking result.

    Validity of Shop and Commercial Establishment Registration Certificate in Telangana

    The certificate's validity will remain from the issued date to the 31st Day of December of that particular year. You need to renew this certificate within 30 working days after it expires. Failing to do so will cause penalties. Therefore, business owners must pay yearly fees to keep their licences valid.

    Timeline to Pay Annual Fees to Ensure Validity of Shop Licence in Telangana

    Here is the timeline to pay the annual fees for ensuring the validity of the shop licence in Telangana -

    • From 1st November to 1st December to avoid penalty
    • From 2nd December to 31st December with a 25% penalty
    • After this span, with a 50% penalty

    Hence, as a business owner, you need to know the rules of the Act that should be maintained to run a business successfully in the state.

    Rules of Shops and Establishments Act in Telangana

    There are sets of provisions for shops and establishments under the Act. This segment will discuss them briefly.

    1. Employment of Women and Children

    Under this Act, no child under the age of 14 years is allowed to work at any establishment. Adding further to these rules regarding women, employers have to provide them maternity leave for six weeks before the day of delivery and six weeks after the day of delivery.

    2. Working Hours

    No shops should be open after the hour fixed by the government. Hence, this hour limit may differ from area to area for different times of the year. The employees' work should have an interval of 1 hour after 5 hours. However, employers can reduce half an hour from the interval for employees who work less than 8 hours a day. Further, if any customer is waiting for service, he or she can be served within a quarter of the closing hour.

    3. Exemption of Work

    Women are exempted from work at any shop or commercial establishment before 6 am and after 8:30 pm. Similarly, young individuals don't need to work before 6 am and after 7 pm.

    4. Regulations and Employment

    • The maximum load capacity for a male worker should not exceed 55 kgs; for women and young individuals, it should be 30 kgs.
    • No woman should carry a load during pregnancy or 10 weeks after delivery.
    • Proper instruction should be given to everyone regarding how to carry loads.
    • Employers should conduct yearly medical check-ups for the employees.
    • Employers cannot charge any penalty to an employee without letting him show a cause against the penalty.
    • Young individuals are exempted from fines.
    • Employees should not work more than 8 hours and 48 hours a week.
    • In case of overtime, there should be extra wages, which should not exceed more than 6 hours a week.
    • Employees of shops and establishments can get twice the regular wages for overtime.
    • Employers should not exceed a wage period of more than one month.
    • The wages should be paid within five consecutive days after the fixed date of receiving wages.
    • Employers should pay wages on working days.

    5. Weekly Holidays

    Every shop and commercial establishment must remain closed on Sunday or any weekday. In addition, every employee should get nine holidays each year with wages. If any employee works during the holidays, he or she is entitled to reasonable wages.

    6. Annual Leave With Wages

    Employees who have served for 240 days can apply for 15 days of leave with wages. Alternatively, if the employees have not served 240 days, they can apply for 8 days of leave with wages.

    7. Right of Employees

    • When an employee files a complaint about not getting any benefit, the employer cannot terminate that employee without resolving the issue.
    • Employers cannot terminate any employee who has been working for 6 months continuously without any valid reason and without giving at least 1 month's notice period.
    • Employees who have served for not less than 1 year should get at least 15 days' average wages per year as service compensation. This will be applicable (i) on the voluntary retirement after 60 years of age, (ii) on the resignation, (iii) on proven physical or mental issues, and (iv) on death or disablement due to any disease or accident.

    Benefits of Registration Certificate for Shops & Commercial Establishment Act in Telangana

    The shop or establishment owners can reap the following benefits by acquiring a shop licence in Telangana -

    • Registering under the Act helps business owners to continue business without any problem.
    • It helps to determine the working hours, leaves and employee wages.
    • Employers and employees both can enjoy a positive ambience of work.
    • Registering under the Act helps business owners to open a current account.
    • There will be fewer audit requirements with this licence.

    Keeping in mind all these important aspects of the Shops and Establishment act Telangana, any state citizen should start a business and flourish. Therefore, consider this guide to make the registration process easier with less effort.

    Frequently Asked Questions

    Which form is required to apply for any notice of change or amendment in the Shop and Establishment Act of Telangana?

    Form no. E must note any changes to the information provided earlier by the applicants. Applicants should pay fees according to the change in the number of employees.

    Form no. E must note any changes to the information provided earlier by the applicants. Applicants should pay fees according to the change in the number of employees.

    What are the cleanliness and safety guidelines for the shop and commercial establishment owners in Telangana?

    The general cleanliness guidelines in Telangana are that the shop, establishment premises, drains, and surroundings should remain clean. In addition, rooms, ceiling and passages must be whitewashed every 2 years. Every shop and establishment should have proper fire handling equipment and a fire exit for security purposes. Safety and first aid appliances should also be there.

    The general cleanliness guidelines in Telangana are that the shop, establishment premises, drains, and surroundings should remain clean. In addition, rooms, ceiling and passages must be whitewashed every 2 years. Every shop and establishment should have proper fire handling equipment and a fire exit for security purposes. Safety and first aid appliances should also be there.

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    Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

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    Last updated: 2023-01-30

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