A Complete Guide to Shop and Establishment Registration in Delhi

To operate any commercial establishment, such as a shop, restaurant, or office in Delhi, navigating the shop and establishment registration is important. The shop registration in Delhi is not a legal formality, but is necessary to get authorization to operate. The state-specific legislation governs the operation. But in Delhi, it is governed by the Delhi Shops and Establishments Act, 1954. Meanwhile, the registration process for the shop certificate is straightforward. But the right guidance helps you easily get the license. This guide will explore how businesses can navigate the registration process, including documentation and compliance requirements. 

2. What is Shop and Establishment Registration?

The shop establishment registration is a comprehensive procedure in which businesses register their establishment with the state’s controlling authority. Registration is compulsory in India for most commercial establishments. It provides a structural framework that regulates the working conditions, including employee rights. Delhi, which is the national capital of India, follows the stringent rules for establishments. The major advantages include

• Eligible for the other registrations and permissions.
• Provides the authorization to run the operation legally.
• Safeguards the rules of employees by setting the rules.
• Monitors the employers along with the working set regulations.
• Registration is formal evidence of the business’s existence.

3. Who Needs to Register Under the Shop Act License?

The registration for the shop license in Delhi is mandatory for various commercial establishments. This registration is compulsory for a wide range of commercial establishments, including

• Shops and retail stores
• Offices, hotels, and restaurants
• Warehouses and godowns
• Theaters and cinemas
• Educational institutions and coaching centers
• Hospitals and clinics

Apart from this, the workshops, factories, canteens, beauty parlors, and laundries are also eligible for the compulsory Shop and Establishment Certificate in Delhi. In addition, the businesses that manage online, such as e-commerce and online stores, are also required to register.  Home-based business proprietors who run a business from home without a physical store must also get a license. 

User Query: Punishments for Not Registering Under the Shop and Establishment Act

4. What are the Benefits of Shop Registration in Delhi?

Holding a valid shop certificate in Delhi means being eligible for the various advantages. The major benefits you can get are

• Legal identity: Establishes a legal entity, giving the business the right to operate in Delhi.
• Business bank account: Essential for opening a current bank account for the business.
• Access to government schemes: Allows the business to avail of various government benefits and subsidies.
• Loan and finance access: Simplifies the process of getting loans and other financial support.
• Other registrations: Makes it easier to register for other licenses, such as GST. 
• Employee rights: Provides a legal framework that protects the rights and well-being of employees, including aspects like wages, leave, and working hours.
• Smooth inspections: Helps in undergoing smoother and quicker inspections by government authorities like the Municipal Corporation of Delhi (MCD).
• Avoids penalties: Ensures the business complies with local labor laws, preventing penalties for non-compliance

5.  Documents Mandated for Shop Registration in Delhi

For the registration of a shop establishment in Delhi, the national capital of India, the applicant needed to provide multiple documents. Here is the list of essential documents: 

• Proof of ownership/lease agreement
• ID and address proof of the proprietor/partners/directors
• PAN card of a business entity
• Photograph of the establishment
• Certificate of incorporation (if applicable)
• If the premise is on rent, the property papers
• Establishment’s utility bill
• Shop’s trade name
• Complete details of employees
• GST certificates of the shop
• Establishment nature

6. The Shop and Establishment Registration Process

To establish any shop in Delhi, your primary requirement is to register the establishment with the state’s controlling authority. Follow this step-by-step registration process: 

Step 1: Access the Online Portal

For the registration in Delhi, you must visit the official website of the Department of Labor, Government of Delhi. The website is “https://labour.delhi.gov.in.”

Step 2: Make an Account

Use a valid mobile number and email ID to sign up to create a new account on the portal. Must ensure the number you provide also links with the other documents, such as the PAN card, Aadhaar card, and business certificates.

Step 3: Look for the Registration Form

Fine the “Shop and Establishment Registration” section on the portal. Then, look for the online application form (Form A). 

Step 4: Complete the Application Form 

Fill out the entire application form (Form A). Must mention all the information in the application, such as the establishment name, address, owner’s information, business category, and the number of employees.

Step 5: Provide Documents

Attach all the supported documents to the application forms. The major documents you required are Aadhaar and PAN card copies.

Step 6: Complete Registration Fees

Through the online portal, complete the registration fees. 

Note: The shop and establishment license cost varies based on the number of employees and registration timeline.

Step 7: Verification Stage

The application with all documents will be verified by the Delhi department authority. The process takes a few days. However, it can take more days if any document is missing or mismatched.

Step 8: Download Shop Certificate

Upon successful verification of the application form and documents, download the license from the dashboard. 

7. Validity and Renewal of Shop and Establishment Certificate in Delhi

In Delhi, the shop certificate is valid for at least 21 years. It can be mentioned as one of the longest validity timelines of the shop license. This is because, in some states, it is valid only for one to four years. On the other hand, apply for the renewal at least 30 days prior to the license expiration. For the renewal, you must submit an application in form “L.” 

8. Sum Up | The Shop and Establishment Act, Delhi

To navigate the shop and establishment registration in Delhi, understanding the legal compliances is essential. By getting sufficient information regarding registration requirements and supporting documents, the businesses can navigate it easily.  Meanwhile, to register the shop and establishment license in Delhi, one must apply online via the Delhi Labor Department portal and attach documents with Form A with all business details. If you are going to navigate the registration steps alone, then you need supportable assistance. Get in touch with LegalRaasta professionals, who will guide you throughout the registration. 

FAQ Section

1. Is shop and establishment registration mandatory in Delhi?

Ans. Yes, the shop license registration is compulsory in Delhi. The registration is also compulsory with a physical setup for online businesses.

2. How long does it take to get a shop license in Delhi?

Ans. The business in Delhi will receive the shop certificate in approximately 7 to 15 working days. 

3. What are the fees for shop registration in Delhi?

Ans. The registration cost for a shop establishment certificate in Delhi depends on the number of employees. If an establishment has 0 employees, the cost is Rs 5; between 1 and 10 employees, the cost is Rs 15; between 10 and 25 employees, the cost is Rs 30; and for 25 and above, the cost is Rs 50.

4. Can I register my home-based business under the Shop Act?

Ans. Yes, the home-based businesses with a physical location are also eligible for the shop establishment certificate.

5. How do I renew my shop and establishment certificate online?

Ans. For the renewal of the shop and establishment certificate, one must navigate the state’s labor department or e-district portal.