Navigating Shop & Establishment Registration in Delhi: Do I Need Separate Registrations for Two Entities?

Dear Friends & Seniors, I have two queries regarding shop & establishment registration in Delhi.

Separate Registration for Different Entities

1. We have a head office in Delhi for two different entities in a single building. Do we need to register separately for these two different entities under the Shop & Establishment Act in Delhi, or is a single registration sufficient to cover both entities?

Penalty for Late Registration

2. We have had the head office since 2010. What will be the penalty if we register after 8 years?

Thanks in advance for your suggestions and response.

Regards, Navneet Kumar Regulatory Compliance Manager

Hi Navneet,

You need to obtain a separate license for each entity.

As stated by Praveen, you need to procure two different registrations for two different offices. Secondly, there is no government fee for such registration in Delhi, and no documentary proof is required to be uploaded on the portal. Hence, at the time of registration, there is no provision for penalty calculation.

However, at the time of future inspection, if the inspector observes that the establishment applied for registration after the first 90 days of its operation, they may levy a maximum penalty of up to Rs 250 for contravention of Section 5(5) under the Delhi S&E Act, 1954, and a further maximum of Rs 250 for contravention of Section 33 if you have not maintained any records and registers as per the Delhi S&E Rules, 1954.

Hope this clarifies your point.

Best Regards, Jayanta Labour Law Consultant

[Email Removed For Privacy Reasons]

I would like to share my views as follows:

1. You have to obtain separate registration for both your legal entities under The Delhi Shops & Establishments Act.

2. Compared to all other states, obtaining registration under Delhi S&E is very easy. As of now, there is no documentation and no fee payable. Also, there is no renewal. You can obtain registration online by simply filling in your company details and generating the RC then and there.

3. Regarding the penalty for late registration, if an inspection takes place after registration, you have to pay a maximum penalty of Rs. 250/- for each of your legal entities.

Regards,
P.S. Lakshmanan
S. G. Management Services
(PAN INDIA Consultant – Labour Law Compliance, PF, ESI, P Tax, Benefit Management & POSH COMPLIANCE) - KOLKATA