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Everything You Need To Know To Apply For Shop Act In Mumbai

Everything You Need To Know To Apply For Shop Act In Mumbai

Mumbai is a bustling city being one of the most populated cities in the country. This capital city of Maharashtra is the hub for various business activities and given its large population, a number of entrepreneurs are venturing into a new business every day. For all the business ventures to be recognised by the Government and for them to comply with the State’s labour laws, these businesses need to apply for a Shop Act licence.

Shop Act is a legal permission which legally allows entrepreneurs to do business in a particular place within Mumbai. The Shop Act is a must if the business owners have a physical shop or an office out of which the business operates. Even if the business is operated from home or a residential premise, the Shop Act is mandatory. 

Shop Act is applicable for any business owner in the entire State of Maharashtra, except for Navi Mumbai. This means that any citizen of Maharashtra who wishes to open a new shop or any commercial establishment and wants to commence their business within the jurisdiction of the Government of Maharashtra, has to register itself under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service)  Act, 2017. The Shop Act in Mumbai provides statutory obligation and rights to employees and employers in the unorganized sector of employment, that is, shops and establishments. 

The Shop Act is intended to control installment of wages, long periods of work, leaves, holidays, and other states of work of individuals utilized in shop and business foundations. The factors regulated and covered under Shop Act include-

By regulating the above factors, Shop Act helps to regulate the conditions of work for employees and in turn helps regulate work and employment in shops and commercial establishments in Mumbai.

Apart from regulating the work conditions, Shop Act in Mumbai, and in the entire State, has other benefits too for businesses and enterprises. Some of the benefits include-

  • A business by procuring the Shop Act becomes compliant to the existing labour laws. 
  • The Government of India offers several beneficial schemes which the business can avail if it is registered under Shop Act. In fact Shop Act is a prerequisite for availing the benefits of the several Government schemes.
  • The Shop Act helps organise the various business sectors, including manufacturing, services and trading, thus helping set rules and regulations for the business. 
  • Shop Act is a necessity when opening a bank account for the business. Thus having a Shop Act in place, speedens the process of applying for loans and subsequently their approval too.

The Shop Act is thus a necessity and beneficial for enterprises. However, often businesses feel that the Shop Act in Mumbai is only for shop owners. But that is not the case, as the Shop Act is for all kinds of businesses whether trading, manufacturing or services. The eligibility and  applicability criteria for procuring Shop Act are discussed here- 

  • Shop Act is applicable for commercial sector businesses, such as banking, trading or insurance establishments.
  • Shop Act is applicable for commercial establishments where individuals are employed or engaged to do office work or provide service.
  • Shop Act is also applicable for businesses such as hotels, eateries and boarding houses or smaller cafés or refreshment houses.
  • Shop Act is also necessary for amusement and entertainment places such as theatres and cinema halls or amusement parks.
  • The Shop Act is a mandatory requirement for businesses if the premises of the business are located within the municipal limits.
  • Shop Act is mandatory even if the business is conducted from home or from residential premises.
  • The Shop Act Intimation or Registration certificate needs to be compulsorily displayed at a prominent place within the business premises.
  • The number of employees will decide whether the business will apply online for a Shop Act Intimation licence or a Shop Act Registration.
  •  The applicability of Shop Act Intimation is for establishments that are employing a maximum of upto 9 employees.
  • The Shop Act Registration is for establishments that are employing more than 9 employees.

Shop Act In Mumbai 

The process and steps to obtain Shop Act Intimation or Licence in Mumbai or Maharashtra (except Navi Mumbai) are the same. It is an online process, but to apply for Shop Act Intimation the applicant will have to first register with MAITRI (Maharashtra Industry, Trade And Investment Facilitation Cell) website.  

But before registering on the MAITRI site, the businesses need to keep certain information and documents ready while applying for Shop Act via the online portal, as elaborated herewith.

shop act in Mumbai

Documents To Be Submitted While Procuring Shop Act In Mumbai

The list of documents required to be uploaded online while applying for Shop Act in Mumbai, excluding Navi Mumbai, include-

  • Scanned copy of photo of the applicant (size of photo should be between 5 KB and 20 KB).
  • Scanned copy of the signature of the applicant (size should be between 5 KB and 20 KB).
  • Applicant’s ID proof (Aadhaar card) (size should be between 75 KB and 100 KB)
  • Establishment Photo (Photo of the sign board of the business) (size should be between 75 KB and 100 KB).
  • Business specific licenses, such as FSSAI, RTO Transport permit, The Food and Drugs Administration License, etc.
  • Also, based on the constitution of the business following additional documents are required:-
    • For a Partnership firm – the Partnership Deed
    • For a Limited Liability Partnership (LLP) – the LLP Agreement
    • For a Private Limited Company and OPC – the Certificate of Incorporation
    • For a Trust – the Trust Deed
    • For a Co-operative Society –  the copy of Bye-laws.

Information To Be Furnished While Applying For Shop Act In Mumbai

While applying for Shop Act in Maharashtra, whether Intimation or Registration, certain information regarding the business needs to be furnished. Most of this information needs to be mentioned in English and Marathi. The information required for the application includes-

Validity Of Shop Act

The validity of Shop Establishment License is for one year. It can be renewed every year.

Procedure To Apply For Shop Act In Mumbai

The steps to apply for Shop Act via the online portal are as follows-

  • Register with the MAITRI website.
  • Login to the MAITRI site and fill in details about the business.
  • Choose the Shop Act service under the option “Services Provided”-  “Labour Department”.
  • Upload the documents required for the Registration. 
  • Make the payment for registering with MAITRI website.
  • Fill Form F for the actual application process for the Shop Act Intimation/Registration licence.
  • Upload documents  pertaining to the owners as required for Shop Act.
  • Pay the fees to apply for the Registration or Intimation.
  • Download the receipt after making the payment.
  • On completing the payment process applicants can download the Shop Act Intimation, payment receipt and filed form.

The detailed step by step process for applying for the Shop Act Intimation can be found in the Shop Act Intimation Checklist

Physical Office In Mumbai For Shop Act Registration

The entire application process for Shop Act in Mumbai is carried out online and is the same for the rest of Maharashtra as well, apart from Navi Mumbai. Any queries related to the application process can also be addressed online via their website. Or businesses can even reach out to deAsra for their queries and for assistance. 

However, in case the applicant needs to visit a physical location in Mumbai then the address for the office is-

  • 1st Floor, MTNL Building, Hatiskar Marg, Hatiskar Wadi, Prabhadevi, Mumbai, Maharashtra 400025.

The Shop Act is therefore mandatory for entrepreneurs to start any business in Mumbai, without which businesses can be liable to penalties. Everything related to Shop Act including its features, applicability, eligibility, its salient features, documents required, information needed and the application procedure is discussed here. For further information or queries, businesses can contact deAsra.

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