Shop Act License Registration And MSME Registration


Shop Act License Registration

Shop Act License Registration

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

Shop Act License Registration

The shop act license 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 acquire a license. The license acts as proof of a particular business being done at that place. In Maharashtra, this act is known as GUMASTA in the regional language. The shop license act provides a chartered and legal obligation and rights to employees in the unorganized sector of employment. It also regulates and maintains the conditions of work and employment in the following places:

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  1. Commercial establishments
  2. Restaurants
  3. Theatres
  4. Other places of public entertainment
  5. Shops

The application for the license in the prescribed form should have the following details:

  1. Name of employer
  2. Name of the establishment
  3. Address of the establishment
  4. Category of establishment
  5. Number of employees
  6. Other details that might be asked for



  • The commercial establishment or the shop will be registered, and a registration certificate will be issued to the occupier.
  • This license issued must be prominently displayed at the shop or commercial establishment and should be renewed periodically according to the act.
  • The shop will be registered only after the submission of the application and review by the chief inspector.



  • MSME, a short name for Micro, Small, and Medium Enterprises.
  • MSME industries have become the backbone of the economy of India.
  • In a 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.



The following documents are required to obtain a shop license:

  • AADHAAR card
  • PAN card
  • Address proof like electricity bill or NOC from the owner
  • Authority letter for business
  • PAN card of the partnership firm
  • An application letter in the prescribed format addressed to the municipal corporation



  • 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 particular businesses, registration under GST is mandatory, if the business is carried on without registering, heavy penalties will apply.
  • The Contract Labour Act had been implemented and was established by the Indian Legislature in the year 1970.
  • Every contractor who has employed more than twenty workers on any day needs to apply for the labor license.

If any individual is planning to start with a shop establishment or a commercial working place, he must contact the chief inspector for a Shop and Establishment Act License within the stipulated time.

For shop licence click here


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