Shop License: Available benefits & documents needed

SRINAGAR — All businesses registered in India have to register under the Shops and Establishments Act, even if they are not planning on doing business within the country. Some Acts are put in place for the employees of an establishment, while others exist to protect the customers of the business.

The shop licence, applied for through the Shops and Establishments Act, aims at protecting the people working at the enterprise, but registering for the same involves a lot of paperwork from the company. However, since it is mandatory, they have to get through it or it could be shut down by authorities.

Registering for the Shops and Establishments Act provides the applicants with a shop licence that they use to prove that they are a registered establishment. They need the shop licence when they are hiring staff or if they want to apply for other company-related paperwork.

The Benefits of Shop Licence:

The document proves that an establishment is a legal entity: Each shop or business needs to prove that they are a legal entity, whether they are a proprietorship firm or partnership firm etc. The document gives them the right to conduct business in a specific area depending on their registration.

It assists when applying for a company bank account: The shop license needed to prove the legality of a business entity can also assist when opening a Current bank account. Each shop and establishment has to open a separate bank account for the daily transactions as per the RBI Compliance.

It assists with smooth inspections which are frequent for public businesses: State government and local Municipality conduct regular inspection visits. They go through the establishment to make sure they are following the proper working rules and conditions, and they have the right licenses as well. If you have the Shop Act License, then you can quickly get over the inspections every time by showing them that you have your documentation in place.

Establishments can apply for government benefits: Each State has a DIC Department which creates the policy in that respective State for all the small businesses. Based on Shop License Registration Certificate, companies, businesses, and startups can easily avail various government benefits.

Documents Needed When Getting Through The Process:

• A photograph of the Shop or Establishment with Name Board in local language.
• The Certificate of Incorporation, MOA & AOA of Company or LLP Agreement of the Company or LLP.
• A copy of PAN Card.
• The list of Directors or Partners and their ID & Address proof.
• The copy of Board Resolution or Partners’ Consent.
• The Address proof of Company/LLP/Partnership/Proprietorship.
• The details of all the employees, if any.

Similarly to running a business with a shop licence, if the same company is working with food in any part of the country, they have to get their food licence. FSSAI stands for the Food Safety and Standards Authority of India, which is an organization monitoring and governing the food business in India. It is an autonomous body under the Ministry of Health & Family Welfare, Government of India.

The FSSAI was established under the Food Safety and Standards Act, 2006 (FSS Act), which is a consolidating statute related to food safety and regulation in India. Initially, there were about 12 Acts, along with several separate departments that are all put under the giant umbrella that is the FSSAI. They have to ensure the food products undergo quality checks, thereby preventing or reducing food adulteration and the sale of sub-standard products. It is responsible for registering and licensing Food Business Operators (FBO) in India and lays down the rules and regulation for running the food business in India.

FSSAI registration or license is based on business volume and premises. Depending upon the installed capacity or turnover or location, applicant premises are eligible for the license such as Basic License, Central License, and State License.

Applicants can apply for both the shop registration and food licence online, and applicants can go through the details of the applicant without having to leave the comfort of their house. The Government’s e-Governance platform provides all the information that people might need on the process for getting this done.