Shop And Establishment Act

Dear All
We are running a pvt ltd. company and a proprietorship in the same premises. Pvt. ltd is 3 years old and proprietorship is 15 years old. Employee strength is 16 in each organisation. We are not registered under the shop and establishment act (S&E act).
Q1. What are implications of the above facts?
Q2. If I take up the process of registration... should I register one or both organisations?

The registration of the shop act is required if you are into trading or services etc. withing the ambit of definition of shop or commercial establishment. If any mfg activity is carried on then Factory licence is required.
you can register it prospectively. If you are abiding by the rules of maintenance of muster roll, wage register hours of work etc. closing opening time etc. then there would be no issue.
Depending on the activity you can register them as one or two separate entities.

These are two diff.entities and if it's not covered under any other Act like the Factories Act, you should go for registration of both separately. Since both are already running firms, you may have to face penalties for the delay in registration but there is no problem in registering prospectively.

Dear Mr. Smrit,
You need to register both the companies under shop and establishment act. In case of delay in registration you may need to pay penalty.
For Further assistance, Contact Mr.Vinodh on 0989461 0088 and mail to [Login to view]
We have the expertise in labour laws of various states in India. ARMSS is probably the only integrated HR services provider, offering corporate customers an end to end solution.

Dear smriti,
Pl.go thru' the following provisions of the Act for this purposes -
Chapter I-Section 2, Sub Section (3),(5),(6) (17) read with
Chapter II -Section 4 and Chapter VIII of the Rajasthan Shops & Commercial Estt.Act, 1958,
Labour Department
And for further guidance study this link as well -
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