The Shop & Establishment Certificate is a mandatory legal registration for every business in India—whether it’s a shop, office, consultancy, commercial establishment, small business, or service provider. It ensures your business is officially recognized by the Labour Department and compliant with state rules.
In this blog, we break down the step-by-step process, required documents, benefits, and FAQs to help you apply easily—especially if you are a new entrepreneur.
What Is a Shop & Establishment Certificate?
A Shop & Establishment Certificate (also called Shop Act License) is an official registration issued by the State Labour Department. It governs the working conditions and ensures employees’ rights within shops, offices, small businesses, and commercial establishments.
This registration is mandatory for:
Proprietorship businesses
Partnership firms
Private Limited Companies
LLPs
Retail shops
Service-based businesses
Online & home-based businesses
Why Is a Shop & Establishment Certificate Important?
1. Mandatory for Business Legality
Most states require this certificate within 30 days of starting a business.
2. Useful for Opening a Current Bank Account
Banks often ask for this license to verify business existence.
3. Helps in Government Compliance
Ensures your business follows labour laws, working hours, leave rules, etc.
4. Builds Trust & Credibility
Customers and vendors trust businesses with proper licenses.
Step-by-Step Process to Get Your Shop & Establishment Certificate