In India, the Shop and Establishment Act was introduced to
monitor/regulate work conditions & to protect the employees' right in an unorganised
sector of employment under the Indian Labor Law. The Shop and Establishment Act
Registration is compulsory for all types of food businesses in India be it a food
truck or a fine dining restaurant. Generally, shops are defined under the Shop and
Establishment Act as the premises where the products selling take place either by
retail or wholesale or where services are provided to customers. It comprises
offices, storerooms, warehouses & godowns used in association with the trade or
business.
Commercial establishments under the Act are defined as a commercial, trading,
banking, or insurance establishment or administrative services in which individuals
are employed for office work. It comprises a hotel, eating house, theatre,
restaurant, cafe, or other public entertainment or amusement places. However,
industries & factories are not covered by the Shop and Establishment Act & are
regulated by the Factories Act, 1948 and Industries (Development & Regulation)
Act,
1951. The Shop and Establishment Act Registration Certificate or License
acts as a
Basic Registration or Licence for the business. The Shop and Establishment Act
Registration Certificate is produced for getting many other business Licences &
Registrations. It serves as incorporation proof of commercial shops or
establishments. It is useful when the business owner wants to get a loan or open a
current bank account for the business. Most banks will ask for the Shop and
Establishment Act Registration Certificate for opening a current bank account.