Ramesh has purchased a shop in local market of New Delhi and wants to set up a business of electronic goods. Is he required to get his shop registered under the Shops and Establishment Act? If so, advise him with the pro

CS Executive · Setting up of Business Entities and Closure · PYQS · December 2018
Ramesh has purchased a shop in local market of New Delhi and wants to set up a business of electronic goods. Is he required to get his shop registered under the Shops and Establishment Act? If so, advise him with the procedure.

Answer & Explanation:

Any shop or commercial establishment that commences operation shall apply to the Chief Inspector for a Shop and Establishment License, in a prescribed form along with the prescribed fees, within the prescribed time. Considering the fact that Mr. Ramesh has purchased a shop in the local market of New Delhi, therefore Ramesh as a business owner of the shop is compulsorily required to get the same registered under the Delhi Shops and Establishment Act, 1954. Further, Mr. Ramesh is advised to follow the procedure for registering the Shop, which is described as below: The application for license in the prescribed form containing the name of the employer, address of the establishment, name of the establishment, category of the establishment, number of employees and other relevant details as requested, must be submitted to the inspector of the area within 30 days of starting any work in the Shop/Establishment along with the prescribed fees. Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of the establishment. This Certificate will be valid for 5 years and has to be renewed thereafter.

Topics: Labour Laws

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