How can you complete the Shop Registration Process within 30 Days?

Securing the shop establishment license from the respective state’s controlling authority means the entity is operating legally under a specific law. The shop license is a prerequisite for businesses that are covered under the Shop and Establishment Act. However, for the new businesses, the length of the processing timeline is important. Entrepreneurs frequently don’t know how long it takes or what steps are required under this act. What if the registration process is completed within 30 days of application registration? We’ll go over how to finish the procedure in 30 days while adhering to legal requirements in this thorough guide. 

A) Understand the Legal Requirements (Day 1-3)

Before starting the shop and establishment registration process, businesses must understand the specific legal requirements. Since the registration is a state-specific topic, it becomes important to go through each state’s rules and regulations. Different documents must be prepared by businesses for each state or region. These documents include the identity and address proof of the businesses and the business license application. 

B) Choose Your Business Structure (Day 4-5)

It is a further crucial part. For the shop establishment certificate, the businesses are required to register under a specific business structure. Each structure has different tax and liability implications. The major structure includes:

I) Sole Proprietorship Registration

It is best for those who want to operate the establishment alone and want a simple setup. It can be set with minimal documents and low cost. The structure offers unlimited liability and full control of the setup.

II) Partnership

If any commercial establishment is built by two or more owners, a partnership is required. It is simpler as compared to a corporation and offers unlimited liability.

III) Private Limited Company (Pvt Ltd)

The establishments are looking for rapid growth and investment. It offers protection to personal assets, helps to raise funds, and also offers perpetual existence. It is more complicated as contrasted to other business structures, including offering greater legal formalities and higher setup costs.

IV) Limited Liability Partnership (LLP)

For individuals who wish to operate with multiple owners in order to reduce their personal liability, this business structure is perfect. It provides the liability protection while still being relatively easier to manage than a Pvt Ltd. However, it is more complex to manage compliance.

C) Organize all Required Documents (Days 6- 10)

Before applying, it is critical to have all required documents organized and prepared prior to submission. It is also necessary to submit the following documents. This typically includes:

• For the identity proof provided, a PAN card, Aadhaar card, voter ID, driving license, or passport.
• Assure the establishment. If you are renting the location, you will need to include either the rental agreement or the lease deed. If your location is owned, you should include proof of ownership, such as the sale deed or attached documents and copies of current receipt(s) for the property taxes due.
• A recent utility bill includes the electricity bill, water bill, etc. (Must ensure it is not more than two months old).
• Owners and the establishment’s photographers. The photograph must show the name of the board.
• The business details include the name and address of the establishment, the nature or category of business, the number of employees and their details, and the manager’s name, if any.
• A copy of the partnership deed and the company’s PAN card, if it is a partnership firm. 
• For the company, the Certificate of Incorporation (COI), Memorandum of Association (MoA), Articles of Association (AoA), and the list of directors.
• If applicable, the GST registration certificate, No Objection Certificate (NOC)
• The specific trade license depends on the business nature (e.g, if there is a food business, the FSSAI license, and for a wine shop, the Excise license).

D) Register with the Local Authorities (Day 11-15)

The applicant is required to navigate their state’s local government or municipal portal. Visit the right local government or municipal office to start the shop and establishment registration process. Often, some states’ controlling authority provides an online mode for registration. Digital shop registration will automatically speed up the process. Complete the application form and pay the specified registration cost. 

E). Apply for Permits and Licenses (Day 16-20)

Additional registrations are required beyond the shop and establishment license. It depends on the nature of the business you are operating. Securing the additional permits is mandatory. For example, if there is a food business shop in a specific state, such as Delhi, the owner may need of FSSAI food license to run it lawfully. In case you didn’t know about the other registrations, consult with a lawyer or visit to government’s official website. 

F) Register for Taxes (Day 21-25)

Once the shop and establishment is registered, the business needs to register for GST if it passes the turnover limit. The taxes further include the VAT, sales tax, and income tax registration, depending on your business’s type and locality.

G) Set Up Your Business Bank Account (Day 26-27)

Must ensure you have a separate current bank account to manage the shop and establishment’s finances. Open a current business bank account and manage the separate transactions. Often, the banks offer special accounts for businesses with additional features. These special features include merchant services or business loans. It is important to keep the financial records organized from the start.

H) Review and Confirm Registration (Day 28-30)

Once all documentation is submitted, the documents and application will be processed by the controlling body of that state. Must ensure that you get all official registration certificates and other documentation from the local authority to operate your entity freely. 

User Query: Who Is Exempted from Obtaining the Mandatory Shop Establishment License?

I) Final Thoughts | Legal Requirements for Shop and Establishment License

The businesses can complete the process of shop and establishment registration within 30 days with the right guidance and support. However, the process can be increased if there is an error in the documentation and other steps. Apart from documentation, the businesses also need to comply with the governing rules and regulations. Once all these requirements are completed, you can officially start the business. Speak with LegalRaasta experts to streamline and expedite the registration process. We will support you during the registration procedure. 

FAQs | Shop and Establishment  Registration 

Q1. In how many days does the shop establishment registration process complete?

Ans. The registration process typically takes four to ten full working days, and state-by-state variations in the time required for approval are common.

Q2. Where can you obtain proof of occupancy?

Ans. The NOC (No Objection Certificate) of the landlord on whose property you are located is required to prove that you have the right to use that property.

Q3. How can you establish a shop in India?

Ans. To establish a shop, one must obtain the mandatory Shop and Establishment Act license from the respective state’s labor department. 

Q 4. Can you operate a commercial establishment without a shop license?

Ans. No, you cannot operate any commercial establishment without a shop license. This is because getting a shop and establishment license is required by Indian law. 

Q5. How long is a license valid?

Ans. As the shop license is a state-specific certificate, it also differs in its validity. It ranges from 1 to 5 years or even a lifetime. In other states, an establishment with fewer than ten employees is eligible for a lifetime license.