Shop and Establishment Registration in Delhi

Shop and Establishment Registration in Delhi 

The registration of shops and commercial in Delhi is regulated under the Delhi Shops and Establishments Act, 1954. The registration is mandatory for all businesses such as shops, offices, hotels, restaurants, and other establishments operating in the city. Below is a detailed explanation of the process, requirements, and obligations related to the Shop and Establishment Registration in Delhi.

What is the Shops and Establishments Act?

The Delhi Shops and Establishments Act, 1954 is an important act that regulates the conditions of work and employment in shops, commercial establishments, hotels, restaurants, and other similar places of business within the Delhi (NCT). The Act ensures that business owners comply with basic labour rights, safety standards, and working conditions, thus safeguarding the rights of employees working in these establishments.

Who Needs to Register?

All businesses operating in Delhi under the following categories must register under the Delhi Shops and Establishments Act, 1954:

• Shops: Retail stores, wholesalers, or outlets selling goods or services.
• Commercial Establishments: Offices (including banks, insurance companies, etc.), educational institutions, IT businesses, etc.
• Hotels, Restaurants, and Lodging Houses: Any establishment that offers food, beverages, or lodging services.
• Entertainment or Amusement Establishments: This includes clubs, theatres, or any other places where entertainment is provided to the public.

Shops & Establishments exempted under the Act

• Factory
• Religious Body

Advantages of Shop and Establishment Registration in Delhi

1. Legal Recognition: It validates your business operations under state law.
2. Compliance: Helps businesses adhere to labour laws and avoid penalties.
3. Employee Benefits: Ensures fair treatment of employees, fostering trust and loyalty.
4. Credibility: Demonstrates the business’s commitment to legal and ethical practices.

Documents Required for Registration

1. Owner’s PAN and Aadhaar card 
2. PAN card of the firm
3. Address proof of premises (Electricity Bill/Telephone Bill/ Ownership Deed/Rental Agreement 
4. List of employees 

Fee for Shops and Establishments in Rajasthan

Shop and establishment registration in Delhi does not require any registration fee. 

 

Timelines for Approval and Registration Validity
The registration process typically takes 1-2 working days. Registration certificate remains valid for lifetime.

 

Key Provisions of the Rajasthan Shop & Establishment Act

1. 1. Display the Registration Certificate:
      • The certificate is required to display at the prominently place in the establishment.
   2. Maintain Registers:
      • You must maintain a register of employees, which includes details such as name, contact information, working hours, and wages.
      • Keep a record of attendance, wages, and leave details.
   3. Comply with Labor Laws:
      • Follow all labour laws including working hours, rest intervals, weekly holidays, and overtime pay.
      • Provide 15 days earned leave, 12 days sick leave, and 12 days casual leave 
   4. Notify Changes:
      • If there are changes to the business (e.g., address change, ownership change, increase in employees), you must notify the Labour Department within 30 days.
   5. Comply with Health and Safety Standards:

• Ensure the workplace adheres to health and safety standards under the act. 

Penalties for Non-Registration

If a business operates without registration under the Delhi Shops and Establishments Act, it can face several penalties:

• Monetary penalty for failure to register.
• In extreme cases, the business may be closed down for non-compliance.
• Legal proceedings can be initiated against the establishment for violation of labour laws.

1. According to the Delhi Shops and Establishments Act, who must register?

All businesses in Delhi, including shops, commercial establishments, hotels, restaurants, and offices, must register under the Act.

2. What is the registration deadline for a business?
   Businesses operating in Delhi are required to register within 30 days of opening for business.
3. What documents are required for registration?

Required documents include identity proof, address proof, business documents, and employee details.

4. Is there a registration fee?

No, there is no registration fee.

5. Can I register multiple branches under the Act?

Yes, each branch must register separately under the Act.

6. What are the consequences of not registering?

The establishment may be subject to fines, penalties, and even closure if it is not registered.

7. Is the registration permanent?

Yes, its permanent and valid for lifetime

8. What are the working hour restrictions under the Act?

Employees are not allowed to work more than 9 hours a day and 48 hours a week. Overtime is allowed with compensation.

9. Are employees entitled to leave?

Yes, employers need to give 15 days earned leave, 12 days sick leave, and 12 days casual leave to the employees. 

10. What is the overtime pay rate?

Usually, overtime compensation is double the regular wage rate for hours done beyond regular business hours.

11. Is it mandatory to display the registration certificate?

Yes, the registration certificate needs to display at a visible location within the establishment.

12. What happens if there are changes in business address or ownership?

You must inform the Labour Department within 30 days of any changes in address or ownership.

13. What penalties exist for non-compliance with the Act?

Penalties can include fines, closure, and legal actions for violations related to working hours, leave, and safety standards.

14. Are weekly holidays mandatory?

Yes, employees must receive at least one full day off per week.

15. Can children or minors be employed?

No, children under the age of 14 are not allowed to work. Minors (14-18 years) can work with restrictions.

16. Can a business operate beyond regular hours?

Yes, but employees must be compensated for overtime work as per the Act’s guidelines.