Quick Tip: How to Resolve a Change of Business Address in Your Shop Act License?

To meet legal compliance, every established business is required to stay compliant and manage its business records. Each detail in the provided license is required to align with current existing documents. The business address is one of the most crucial items on the license. Even listing the right address in the shop act license is also crucial. Suppose a situation arises where your business address changes after the issuance of the shop establishment certificate. In this situation, the case of license amendment arises.  Let’s explore why updating the business address on the shop certificate is important and what the consequences are if you fail to update it. 

When Do You Need to Update Your Shop Act License Address?

There are various conditions in which a commercial establishment needs to update its shop act license address. However, the businesses need to update their business address on the license when they are related.  It means any changes in the business’s physical address require an update to the license. The following are the main areas where the license prerequisite is to be modified:

• Business relocation to a new office/shop/unit
• Opening a branch or shifting within the same city
• Change in rented premises
• Government compliance checks
• Banking or loan documentation requirements

What is the Significance of Updating a Business Address?

The address listed on the license functions as the registered businesses’ official registered location. The following explains why the companies had to modify their business address:

• Legal Requirement: Under the Shops and Establishment Act, the commercial establishments must provide accurate and current information to the local government or municipal authorities. However, trying to operate the business from an incorrect address causes legal complications.
• Avoid Penalties: During the shop establishment registration process, the respective state’s controlling authority verifies the business information. In case the business details of the application don’t match the original documents, the potential penalties can be imposed. It can also be a possible license suspension or revocation.
• Official Communication: For the legal notices and official communication, the government departments, including tax authorities and other regulatory administrations, use the registered address. Mentioning the wrong business address means you are missing the chance to communicate with the authority.
•  Credibility and Trust: Maintaining accurate and transparent address information boosts credibility with partners, suppliers, and clients.

User Query: Gumasta License Online

The Fastest Way to Resolve a Shop Act Address Change

For the change of the business address in the shop establishment license, you need to submit an application for amendment. It must be submitted to the relevant state’s labor department online. Follow these procedures for the quickest way to amend a shop act address:

Step 1: Gather the Data & Supporting Documents

You must gather all documents that show your current business address. You will be required to furnish the shop act registration certificate number. As proof of the address change, you can provide a rent agreement or an NOC from the landlord. Complete the amendment application. Check the amendment application on the state’s labor department website or the national portal. The name of the business, including the employer’s name, is also required. 

Step 2: Submission of Online Applications

Visit the online portal of the respective state’s labor department. Otherwise, look for the National Portal of India. Visit the section for “Application for Amendment of Certificate of Registration” or “Notice of Change.” Provide all applicable particulars in the online application, including the newly specified business address.

Step 3: Submit Application and Obtain Tracking Details

Once you’ve applied to the business address for the ale/wine/spirits license amendment, you will be able to track your application. Most states will take a few days to amend a shop/restaurant license.

Step 4: Follow Up & Verification

The modification application must be submitted within a specific timeframe. Typically, it must be submitted within 15 days of the date of the changes. The application will be reviewed by the authority to ensure the accuracy of the business address. In some cases, the premises inspection is conducted. Once it is complete, an updated shop establishment license will be issued by the authority with the new address.

Documents Needed for Shop Act License Address Change

During the shop and establishment act address updating, you are required to provide multiple documents. The major documents are

• Proof of identity (such as a PAN card) for the applicant
• New business address proof
• ownership or possession proof of the new premises
• Number of current shops with Act registration certificates
• Proprietor’s passport-sized photo
• Information about the business, such as staffing levels and hours worked
• Trade documents (GST, PAN, Aadhar)

What are the Benefits of Updating the Shop License on Time? 

Keeping all documents updated, including the business address, helps to ensure that the business remains legally sound. It is the way to set up for long-term success. In short, modifying the labor department shop license after the changes helps to align with labor laws. Modification to the license means facilitating the route for business bank account opening. Furthermore, it avoids the legal penalties that are caused by to wrong address mentioned in the license. In addition, a right business mention to the certificate means being eligible for the business loans, MSME registration, and GST updates.

Final Discussion | Shop Act License is Business Existence Proof

The modification of the business address is crucial after any change. Without changing the business address on the shop establishment license, the business can remain active so that the holder is still in compliance with regulations. In order to modify the business address on the shop establishment license, you will need to submit the license and a Notice of Change in most states (sometimes in the form of Form D or E). The particular state and/or municipality will determine the form you must fill out to submit the amendment. During the amendment process, you must adhere to the specified timeframe to avoid any penalty and/or prosecution. Take the LegalRaasta consultancy to make the change in your license faster. 

Frequently Asked Questions

1. Can I cancel my shop establishment license?

Ans.  Yes, you can cancel your shop certificate. But, for it you are required to inform about the same to the chief inspector in writing within 15 days of the business closure. 

2. How to change the shop license address online?

Ans. For the online submission to change the address, submit an amendment application through the state’s specific labor or commercial establishment portal.

3. What does “E-karmika” mean?

Ans. “E-Karmika” is an online portal for the Government of Karnataka. It is generally used for the registration and renewal of establishments under the State’s Shops and Commercial Establishments Act, 1961.

4. Who needs to register under the Shop and Establishment Act?

Ans. Any individual or business that operates a commercial establishment, such as shops, offices, restaurants, or other places that provide services.

5. When is the right time to register the business?

Ans. The businesses must register within 30 days of commencing operations.