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What is Shop Act?
Shop Act has had its importance and relevance since the act was incorporated. With the objectives to render statutory obligations and rights to employees and employers, the show created has a few exciting things you may not be aware of. Before you explore them, understanding the goal, scope, and coverage will help you, especially if you are starting a small business of your own.
Shop Act Registration
Entrepreneurs must comply with the “Shop Act provisions,” particularly when they have a business or an establishment. The shop act has been incorporated for the better administration of the working conditions and employment in shops, commercial establishments, restaurants, eating joints, hotels, theatres, and many such places of public entertainment. The best services to receive Shop Act Registration in Lucknow is through our help at Business Buddy. If you’re an entrepreneur with any of these businesses, this Shop Act application checklist can help you with detailed instructions on registering.
What is the reach of the Shop Act registration?
The Shop Act is a state legislation, and each state has drafted rules and regulations applicable to the particular state. What is expected in the act is that it applies to every person in an establishment, whether with wages or without it and excludes the employer’s family members. It is under the jurisdiction of the state government to exempt, either entirely or for some duration, any establishment from any clause or complete act.
Documents required in the Shop Act Registration:
If Applicant is Individual I Proprietor:
(a) Individual’s photo J.D. (it can be Pan card, Driving license, Passport, Aadhaar Card, Election Card)
(b) residential address proof ( electricity bill, property tax paid receipt, purchase deed, rent agreement)
(c) Documents in support of the place of business ( electricity bill, property tax paid receipt, purchase deed, rent agreement)
(d) Actual photo of the establishment in which the signboard (name) of the establishment duly displayed, appears.
If the applicant is a company under Indian Company Act:
(a) Articles of association/Memorandum of Association with a list of directors
(b) Resolution of starting of the business
(c) Photo of one of the director or the applicant or the authorized representative duly authorized by resolutions to that effect
(d)Address proof of the person above, ( electricity bill, property tax paid receipt, purchase deed, rent agreement)
(e) Address proof of the place of business (purchase agreement, lease deed, rent agreement, electricity bill, property tax paid receipt)
(f) Actual photo of the establishment in which the signboard (name) of the establishment duly displayed, appears. Photo identity of the manager/Authorized person along with appointment letter who applying for the company.
(g) A copy of the license, registration which is mandatory under any other law from any authority before starting of that business.
Advantages of the Shop Act Registration:
To be able to enjoy the positive factors of Shop Act Registration in Lucknow we need to aware of its advantages and characteristics as well.
Shop Act is a mandatory requirement if the business premises are within municipal limits. It is applicable even if you are doing your business for your home or residential premises. Based on the number of employees, you will have to apply online for either Shop Act Intimation or Shop Act Registration. Shop Act Intimation applies to establishments employing up to 9 employees. It is compulsory to display the Shop Act Intimation/Registration certificate in a prominent place on the business premises.
2. Working Hours
As per the act’s regulations, it is required to display a notice in the place of business stating the working hours, rest intervals, and even weekly holidays. Companies working in the shift must display well in advance a shift schedule of the respective employee and the weekly holiday. There shall not be less than 12 hours of gap between two shifts.
3. Health & Safety
Keeping the establishment clean and hygienic also comes into the act and must be strictly followed. The premises should be not only free from dirt and garbage but also be odorless and cleaning time to time with prescribed methods like lime washing, color washing, disinfecting, and deodorizing. The premises should be well-lit with lights or natural sunlight and state-prescribed precautions from fire. The employer must take all the measures to protect the premises and workers from the danger of fire. Maintaining a duly equipped first aid box with first aid appliances and medicines is required.
4. Closure of Business:
In case the business is closed, the employer has to notify the shop act authority within 30 days of the closure of the company. This is applicable for both Shop Act Registration and Shop Act Intimation. The employer has to fill out the application form and physically submit the same to the respective shop act authority. On receipt of the application and after verification of the documents, the administration will remove the name of the establishment from the register of establishments and cancel the registration certificate.
5. Records & Registers:
Every employer is required to maintain the Muster roll cum wage register in the prescribed format, either electronically or manually. The record shall be either in English or the local language. The log should be authenticated either digitally or manually by the employer or any manager who is authorized to do so. The overtime entries should be recorded immediately after the completion of such overtime.
Suppose the number of employees in an establishment exceeds 9. In that case, such establishments must apply for Shop Act Registration, and all the registration provisions will apply to such establishments. In the case of Shop Act Registration, the establishments should apply for renewal of the certificate 30 days before its expiry.
For any and every business person, especially someone who has a small business or is starting a small business, a thorough check over the complete details of the act to avoid any legal issue after the commencement of the establishment is a must. The same is required as a good citizen and for the betterment of the establishment, business, and people working along with you. Therefore any individual or company who wants to be able to complete Shop Act Registration in Lucknow need to be aware of these facts and laws for the smooth knowledgeable functioning.
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