Hi Ganesh,
Yes. It is mandatory that you register your establishment under the shops and establishments act. All establishments other than factories need to be registered under this act within 30 days from the date of commencement of business. If you do not do this, in case of inspection, you might have to pay penalties.
Here are the formalities:
1. For registration the employer has to apply to the Sr. Inspector (Shops & Establishment) of his respective Municipal Corporation of Greater Mumbai Wards in the prescribed form ‘A’ togetherwith requisite fees .
2. Form ‘A’ must be accompanied by the authentic documentary proof as regards rightful and exclusive possession/ occupation of premises and also the proof of business conducting.
Such documentary proof shall be in the nature of rent receipt of premises, consent letter from principal tenant, valid leave agreement, electric bill, ration card, property tax bill, Allotment/ occupation certificate of premises, business transaction proof, partnership deed, memorandum of articles, incorporation certificate etc. as deemed to be satisfactory to the Sr. Inspector (Shops & Establishments) Wards.
Registration Certificate is granted for one callender or three callender years depending on the option exercised by the employer.