The Shop and Establishment License Registration is a basic license that provides an entity with a legal identity in terms of carrying on a trade, business or profession. This license makes an entity a registered business establishment in the eyes of law and therefore, does not face any difficulty at the time of inspections or government surveys.
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Frequently asked questions.
Shop Act License is a type of Legal permission which legally allows us to do business in a particular place. If you have a physical shop or a office where the business is done, this license is a must. It gives you a proof of a particular business being done at that place.
The Shop and Establishment (S&E) Act is applicable on all the commercial establishments; viz, business centres, offices, warehouses, stores, hotels, eateries, amusement parks, theatres, etc, nationwide. It is one of the most important regulations required to be complied with for any business.
Following is the difference in between Trade and Shop Establishment License: An individual who is going to commence any business or shop needs to get the business registered with the local government in Shop Establishment while trade license is a permission given to a person to carry out a particular business or trade.
Both are Acts to regulate conditions of service of workers engaged. While the Factories Act is applicable to establishments wherein a manufacturing activity is carried out the Shops and Commercial Establishments Act is applicable to establishments which do not fall under the definition of factory, mine or plantations.