Shop & establishment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2013 Why we require shop & establishment licence?
suppose M/S abc is PF & registered office is at 1 place, but no business activities has been carried from this place. The main activities is from some other place which is on rent .I want to know whether in this case M/S abc is required to obtain shop & establishment licence? if Yes, then on which place of business whether Reg. office or rented premises?

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2013 please reply

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Great question! Here's how it works:

Why is Shop & Establishment License required?
It is mandatory under the respective state’s Shops and Establishments Act to regulate conditions of work, payment of wages, working hours, holidays, etc.

Any place where business activities are carried out usually requires this registration.

In your case — M/S ABC has:
Registered office at Place A (no business activity here)

Business activities carried out at Rented Premises B

What should be done?
The Shop & Establishment License is required for the place where actual business activities take place, i.e., the Rented Premises B.

The registered office, if no business is done there (like just an address for correspondence), typically does not require this license.

However, if any employees work or business is conducted from the registered office, then it would need registration.

Summary:
License is needed where business operations are actually carried out.

Registered office without activity generally does not require license.

The rented place where business happens must have the Shop & Establishment license.

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