Shop Act License

What is Shop Act License?

It is a state-specific registration governed by the Shops and Establishments Act of the respective state.
For Maharashtra, it comes under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017.
This license is required for:
✔️ Shops
✔️ Offices
✔️ Cafes, hotels, and restaurants
✔️ Small businesses and commercial establishments
✔️ Professional service providers (like CA, consultants, etc.)

Objectives of the Shop Act

To regulate working hours, overtime, and weekly holidays.
To ensure proper wages and leave policies.
To regulate employment of women and young persons.
To maintain health, safety, and welfare standards at workplaces.

Who Needs It?

Any business establishment where:
Goods are sold (retail/wholesale)
Services are provided (professional/service sector)
Office/Commercial unit is operating

👉 Even freelancers, professionals (like doctors, lawyers, architects, consultants), and home-based businesses often need it for bank account opening, GST, loan, or official contracts.

Documents Required

(Common in Maharashtra & most states – may vary slightly)
ID Proof – Aadhaar / PAN / Passport / Voter ID
Address Proof of Business – Rent agreement / Property tax receipt / Electricity bill
Business Proof – PAN of firm/proprietor, partnership deed / MOA-AOA (for companies)
Passport Size Photo of owner
Other Licenses (if applicable) – GST, FSSAI (for food businesses)

Registration Process (Online in Maharashtra)

Visit Maharashtra Labour Department Portal.
Fill online application with establishment details.
Upload scanned documents.
Pay fees online (depends on number of employees & validity period).
License is issued digitally – usually within 2–7 working days.

Validity & Renewal

In Maharashtra, license can be taken for 1 year to lifetime validity.
Renewal required only if taken for limited period.

Government Fees (Approx in Maharashtra)

Depends on number of employees and validity:
0 employees (just owner) → ₹1,000 – ₹1,500 approx
With employees → fees increase slab-wise
Lifetime registration also available

Benefits

✔ Legal recognition of your business
✔ Mandatory for GST registration, bank account, loans, tenders
✔ Helps in smooth inspections by labour authorities
✔ Builds trust with customers and suppliers

Penalty for Not Registering

Operating without Shop Act license may lead to penalties, fines, or closure notice by the labour department.