Registration under Bombay Shops and Establishment Act

CA Hitendra Ranka (Job) (25 Points)

17 December 2015  

Registration is compulsory for any shop / establishment with / without employment within 30 days of the commencement of the work. It generally takes around 10-20 days to complete the registration process. All communications in this respect are sent on the mobile number given with the application.

List of documents required:

a. Property tax bill together with property tax paid receipt (latest) of the place where the business is ought to start.

b. If the place of business is rented, then notarized rent agreement it to be submitted. In case, in tax bill, occupier’s name is not of the tenant, in that case application for changing occupier to tenant is  to be made and the receipt of the same needs to be submitted.

c. If the place of business is owned, conveyance deed / index no. / share certificate copy are to be submitted.

d. If the business is conducted by the other family member who is not the owner of the said property, some proof substantiating the connection with the property owner.

e. If no conveyance deed available at the time of application then, Agreement to sell with copy of power of attorney is to be submitted.

f. Copy of photo ID.

g. Address in the certificate will be as per the address in the Municipal tax bill of the place of the business.

h. Two passport size photos of the proprietor.

i. If no of employees working are equal or more than 10, then fees is to be paid to respective State labors welfare board and the receipt of the same is to be submitted at the concerned.

j. If place of business is same as residence, then application seeking for separate bill for commercial / residence in the concerned civic center is to be submitted.

k. Professional tax certificate as well as receipt of the payment is to be submitted.

l. If third party approach for license, then authority letter on the business’s letterhead is to be submitted.

Benefits of registration from practical perspective:

a. Its observed that when the small entrepreneurs approach to banks for catering their financial needs for their startups, the very basic requirement together with other requirements asked by the  banks / lenders is registration certificate under Bombay Shops and Establishment Act ( Popularly known as 'Gumastha dhara').

b. Its essential and compulsory to get registration as per the local laws of the municipality of the respective city where the place of business is proposed to be set up. It also serves as a proof of place of business.

c. Registration under the Act is subsequent to compliance with professional tax requirements, hence Bankers / lenders have assurance of proper compliance of the local laws where the place of business is proposed to be set up.