What is the applicability and documents required for shop and establishment registration?

Published On: Oct 11, 2023Last Updated: Mar 30, 20243 min read


In the intricate web of India’s business regulations, understanding the nuances of licenses is paramount. One such fundamental requirement for any business entity operating in India, whether a bustling shop or a commercial establishment, is the Shop and Establishment License. Governed by the Shops and Establishment Act, this license ensures businesses adhere to specific rules and standards. It fosters fair employment practices and ensures safe working environments. In this comprehensive guide, we will delve deep into the applicability of the Shop and Establishment Act. We will also understand the imperative nature of the Shop Act License, and explore the extensive array of Shop Act licence documents required for its procurement.

Applicability of Shop and Establishment Act

The Shops and Establishment Act applies not only to traditional shops but also to a wide array of establishments. Such as hotels, clubs, restaurants, and other places of public amusement or entertainment. The act operates under the jurisdiction of the state’s Department of Labor. It oversees any trade, business, or profession carried out in an establishment. Although the specifics of the act may vary from state to state, its primary purpose is to regulate aspects such as working hours, rest intervals, holidays, and employment conditions.

Applicability in Gujarat and Maharashtra

In Gujarat and Maharashtra, two economically vibrant states in India, the Shop and Establishment Act holds substantial significance. As mentioned earlier, this legislation applies not only to traditional shops. It also encompasses a wide spectrum of establishments, including hotels, clubs, restaurants, and places of public amusement or entertainment. In each of these states, their Labour department governs the Shop and Establishment license. Additionally, this license is called the Gumasta license in Maharashtra.

Shop Act License

Is Shop and Establishment License Compulsory?

Absolutely. Acquiring a Shop and Establishment License is not just a legal formality; it is a mandatory requirement for any business operating in India. Whether a business operates from a commercial space or the confines of a home, this license is indispensable. It serves as a legal entity proof, acting as the foundation upon which various other licenses and certifications are obtained. Any failure to obtain this license can result in severe penalties, making it a non-negotiable aspect of business operations.

What Shop Act licence documents do I need?

Obtaining a Shop and Establishment License involves gathering essential documents. Shop act licence documents include:

  • Identification proofs like Aadhar card, PAN card, voter identification card, or driving license of the employer. 
  • Passport-size photographs of the employer
  • Affidavits
  • Cancelled cheques and bank statements
  • Photos of the establishment
  • Rent agreements (in the case of rented property)
  • Utility bills for the working premises are also required. 

Moreover, additional documents may be necessary based on the type of business entity.

Additional Shop Act licence documents

Depending on the nature of the business, certain establishments might need additional Shop Act licence documents. For instance, businesses handling food products might require licenses related to food safety and hygiene. Those dealing with hazardous materials might need special permits. Hence, it is essential to tailor the document submission process according to the specific demands of the business operations.


In the diverse tapestry of Indian businesses, the Shop and Establishment License stands as a fundamental thread. It weaves legalities with operations. Businesses, whether small or large, must recognize the significance of this license. It not only ensures compliance with the law but also fosters a conducive environment for both employers and employees. Having the required Shop Act licence documents beforehand while applying for the license can help you get your Shop and Establishment registration quickly and without any roadblocks.

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Monjima Ghosh
About the Author

Monjima Ghosh

Monjima is a lawyer and a professional content writer at LegalWiz.in. She has a keen interest in Legal technology & Legal design, and believes that content makes the world go round.

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