1. An Overview: The Delhi Shops Act for the New Entrepreneurs

Suppose you recently established an entity in Delhi but failed to comply with the Delhi Shops Act, 1954. Well, in India, any type of business is required to be verified through a specific registration. This is where the shop and establishment registration is very important. The new entrepreneurs are required to go through the state-specific rules and regulations before initiating the operation. Adherence to the law provides the legal authorization to operate. However, what does the Delhi Shop Act accomplish, and how does it qualify for shop certification? Looking for the same? Then you are on the right page. See the next section for more information!

2. The History of the Delhi Shop Act

The journey of the Delhi Shops and Establishment Act, 1954, began when it came into force on 1st February 1955. The main goal is to establish a legal framework for keeping an eye on employees’ working conditions in any commercial establishment. By setting the minimum standards for working conditions, it protects the employees from unwanted issues. The key historical milestones and provisions include:

• Delhi Shop Act Implementation: The Delhi Shop Act was approved by the president on June 19, 1954, and officially implemented on February 1, 1955. This act rules, and the regulation is only applicable to the Delhi borders.
• Purpose: The primary aim was to make the shops’ and commercial establishments’ rules and guidelines favorable for employees.
• Employee Rights and Protections: This act was implemented for employees concerning –

1. Wage payments and salaries are on time
2. Rules for working hours and rest intervals
3. Compulsory holidays, annual leave, and sick leave
4. Protection Against Unauthorized Deductions
5. Maternity leave and benefits

• Establishment Regulation: This covers the guidelines controlling the establishment’s operating hours. Ensures the weekly holiday benefit for employees.
• Child Labor Prohibition: The Delhi Shop Act prohibits the employment of children.
• Non-Compliance Penalty: For violating the Act, the offender can face the stringent penalty, as provided in the Act. It also includes the record-keeping and obstructing inspectors.

3. Why the Shop Registration Matters for the New Entrepreneurs? 

The shop establishment license in Delhi provides various benefits. For new business owners, the license is important for the following main reasons:

1. Business Legal Existence: The shop establishment license provides legal recognition to businesses in Delhi. It demonstrates that the business is registered in compliance with the 1954 Delhi Shops and Establishment Act.
2. Employee Rights: It ensures that the registered establishment complies with the state’s specific labor laws. The law is generally implemented to protect the employees’ rights regarding working hours, holidays, and leaves, including wages.
3. Compulsory Registration: The Gumasta License Registration is a prerequisite for the other requirements.

   It is utilized, for instance, when opening a current bank account. 

4. Access to Financial Services: The legally registered businesses can get business loans and services from financial institutions with the shop establishment certificate.
5. Builds Credibility: The shop registration boosts the credibility of the business with clients, including suppliers and banks. 

4. What are the New Entrepreneur’s Responsibilities?

If any fresh entrepreneurs establish a commercial place in Delhi, they must register their business under the Delhi Shop Act. Use the online portal to apply for registration, as it has been streamlined. You can conduct it online through the SPICE+ portal. Maintaining all employee records is essential for the new employee. Must also maintain employees’ details, wages, and attendance reports. Salaries must be paid to employees within the first week of the subsequent month, and they must get at least the minimum wage. 

5. Apply for the Shop Establishment under the Delhi Shop Act, 1954

The Delhi Shop Act of 1954 states that to receive a shop and establishment certificate in Delhi, the applicant must register. Before starting the registration procedure, the businesses are required to access the Delhi Labour Department Portal. The process includes:

Accessing the Online Portal

Must visit the official online registration portal of the Delhi Labour Department. Use the contact details and email address to create the account. 

Completing the Application Form

After selecting the option “Shops and Establishments,” complete the application form by mentioning the necessary details. For the shop establishment application form, use Form A. The name, address, and type of business are the specifics you must include.

Attach the  Necessary Documents

Provide the supported documents with the application form. A copy of the Aadhar Card and PAN card is required to be submitted along with the application form. The applicant should ensure that all submitted documents are in proper format and attached clearly.

Fees for the Shop Registration

Shop license fees must be paid by all applicants; the fee structure will be based on the number of employees and the length of the registration period.

Get your Certificate

Once the application has been verified by the Labour Department, the applicant will find their Registration Certificate available for download via the portal’s dashboard.

6. Sum Up | Shop and Establishment License in Delhi

In Delhi, the commercial establishments register for the shop license under the Delhi Shop Act, 1954. The new entrepreneurs need to obtain these crucial documents. This crucial document demonstrates that your business is legitimate and ready to operate freely. In addition, it ensures that the entity operates within a specific set of legal frameworks. For the smooth registration, register online through the Delhi Labour Department’s Portal. Otherwise, seek the consultancy from a legal advisor. Visit the LegalRaasta.com website for more details.

7. Frequently Asked Questions

1. What is the Delhi Shop Act, 1954?

Ans. The Delhi Shops and Establishment Act, 1954, is an Indian law that governs the working conditions of workers in Delhi’s shops, businesses, and other establishments. 

2. How long is the shop certificate valid in Delhi?

Ans. Generally, the shop establishment certificate in Delhi is valid for five years. But some sources claim it is valid for 21 years. However, as per the official sources, it is valid for the 5-year term.

3. Which application form is required during the license renewal?

Ans. For the renewal, submit the request application in Form L. 

4. What is the shop license registration cost in Delhi?

Ans. The shop license can be downloaded directly upon online submission. But there is a fee associated with the trade license, which is issued by the Municipal Corporation of Delhi (MCD). The cost generally includes Rs 500 to Rs 2000 per year.

5. How many employees can be in a Delhi-based shop licensed entity?

Ans. There is no upper limit on the number of employees in a Delhi-based shop-licensed entity.