What is Shop and Establishment Act? Here's how you can register for a shop license

The shop licence refers to a type of legal permission that legally allows people to do business in a particular place. If any individual has a physical shop or office, it is essential to obtain a license. The license acts as proof of a particular business being done at that place.

The Shop and Establishment Act in India is promoted by the state governments, but it slightly varies from state to state. All the shops and commercial establishments functioning within a particular state are covered by this act.

An example of this is - in Maharashtra, the Shop and Establishment Act is known as GUMASTA in the regional language, all the shops there have to be registered under this act.

For labour registration related details click here.


1) Provides a chartered and legal obligation and rights to employees in the unorganized sector of employment.

2) Regulates and maintains the conditions of work and employment in the following places:

a) Shops

b) Commercial establishments

c) Restaurants

d) Theatres

e) Other places of public entertainment

3) If any individual is going to start with a shop establishment or a commercial working place, he/she must apply to the chief inspector for a Shop and Establishment Act License within the stipulated time.

4) The application for the license in the prescribed form should contain:

a) Name of employer

b) Address establishment

c) Name of the establishment

d) Category of establishment

e) Number of employees

f) Other details that might be asked for

5) The shop will be registered only after the submission of the application and review by the chief inspector.

6) The shop or commercial establishment will be further registered, and a registration certificate will be issued to the occupier.

7) This license issued must be prominently displayed at the shop or commercial establishment and should be renewed periodically under the act.


1) AADHAAR card

2) PAN card

3) Address proof like electricity bill or NOC from the owner

4) Authority letter for business

5) PAN card of the partnership firm

6) An application letter in the prescribed format addressed to the municipal corporation


MSME stands for Micro, Small and Medium Enterprises, MSME industries have become the backbone of the economy of India.

In a developing country like India, the MSME sector contributes to 45% of India’s total Industrial Employment. These industries are also called small-scale industries or SSI’s when these industries grow, the economy of the country flourishes and grows as a whole.

The registration can be done by any small and medium scale industry owner who needs to fill the application form either online or offline.


With this GST regime, any business whose turnover amount exceeds Rs.40 lakhs needs to register as a normal taxable person, this process of registration is called GST registration.

For some businesses, registration under GST is compulsory, if the business is carried on without registering, heavy penalties will apply.

It is essential to apply for a shop licence if you are planning to set up an office or a commercial establishment.

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