We have 18 employees, and we are recruiting more manpower in the coming months. We have decided to provide ESI & EPF for all the employees. Currently, we have service tax registration, but we do not have a Shop & Establishment license. We wanted to know if it is mandatory to have a Shop & Establishment license to submit an application for ESI & EPF.
From India, Bangalore
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1From India, Bangalore
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Yes, it is mandatory whether you are registered under The Factories Act 1948 (if the strength is more than 10 and power is being used) or The Shops & Establishment Act (if the strength is less than 20 and power is not used in manufacturing activity).
Requirements for EPF/ESI Benefits
To get EPF/ESI benefits, it is mandatory that you have to be registered under one of the following:
- (a) Having a license under The Contract Labour (Regulation and Abolition) Act 1970.
- (b) License under The Shops & Establishment Act.
- (c) License under The Factories Act 1948.
From India, New Delhi
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Requirements for EPF/ESI Benefits
To get EPF/ESI benefits, it is mandatory that you have to be registered under one of the following:
- (a) Having a license under The Contract Labour (Regulation and Abolition) Act 1970.
- (b) License under The Shops & Establishment Act.
- (c) License under The Factories Act 1948.
From India, New Delhi
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It is compulsory to get registered under either a Factory License or a Shop Act License before you can apply for PF/ESIC registration. It is mandatory for all. The factory license depends upon the nature of your establishment, whether it falls under the definition of a factory. Also, check if your office falls within a Municipal area or a Gram Panchayat area. If it is within a Gram Panchayat area, then there is no need to take a Shop Act license; you just need to obtain a NOC from the Gram Panchayat.
From India, Kolhapur
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From India, Kolhapur
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Thanks a lot Mr. Ashok, Now we will go for the Shop establishment in the first place and then submit application to become a member of ESI & EPF. - Thank you again.
From India, Bangalore
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From India, Bangalore
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You may also have to register for Professional Tax, PAN, TIN/TAN If any manufacturing & service, sale of goods business is involved take care of Regn.Central Excise & service tax, VAT also. kumar.s.
From India, Bangalore
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From India, Bangalore
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If your establishment comes under the following, then go for registration under the Shops and Establishment Act. "Establishment" means a shop, a commercial establishment, residential hotel, restaurant, eating house, theatre, or other places of public amusement or entertainment to which this Act applies and includes such other establishments as the Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act.
Alternatively, if it comes under the following, then go for registration under the Factory Act:
- Factory Definition
"Factory" means any premises including the precincts thereof:
- (i) where ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
- (ii) where twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.
This does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a mobile unit belonging to the armed forces of the Union, a railway running shed, or a hotel, restaurant, or eating place.
- Explanation
For computing the number of workers for the purposes of this clause, all the workers in different groups and relays in a day shall be taken into account.
- Explanation II
For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof.
However, you are not required to be registered under both the Factory Act and the Shops & Establishment Act. You have to be registered under either one. Be clear on this point. After registration is done, you can apply for the ESI or EPF registration.
Thanks to all,
Regards, Raj Labour Law consultant
From India, Delhi
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Alternatively, if it comes under the following, then go for registration under the Factory Act:
- Factory Definition
"Factory" means any premises including the precincts thereof:
- (i) where ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
- (ii) where twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.
This does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a mobile unit belonging to the armed forces of the Union, a railway running shed, or a hotel, restaurant, or eating place.
- Explanation
For computing the number of workers for the purposes of this clause, all the workers in different groups and relays in a day shall be taken into account.
- Explanation II
For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof.
However, you are not required to be registered under both the Factory Act and the Shops & Establishment Act. You have to be registered under either one. Be clear on this point. After registration is done, you can apply for the ESI or EPF registration.
Thanks to all,
Regards, Raj Labour Law consultant
From India, Delhi
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We have 18 employees, and we are recruiting more manpower in the coming months. We have decided to have ESI & EPF for all the employees. We have service tax registration as of now, but we do not have a Shop & Establishment License. I wanted to know whether it is mandatory to have a Shop & Establishment License to submit an application for ESI & EPF.
Requirement for Shop & Establishment License
Having a license under the Shop & Establishment Act is mandatory to start any business, office, or branch office. Even if you have a license under the Factories Act and wish to open an office other than at the site of the factory, or any place other than the location of the place where the factory is located, a license under Shop & Establishment is necessary. It is to regulate a business whether Proprietorship, Partnership, or a Company under the Company Act. PF/ESIC all come later.
From India, Thana
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Requirement for Shop & Establishment License
Having a license under the Shop & Establishment Act is mandatory to start any business, office, or branch office. Even if you have a license under the Factories Act and wish to open an office other than at the site of the factory, or any place other than the location of the place where the factory is located, a license under Shop & Establishment is necessary. It is to regulate a business whether Proprietorship, Partnership, or a Company under the Company Act. PF/ESIC all come later.
From India, Thana
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As you mentioned, "if an office comes under the Gram Panchayat area, then there is no need to take the Shop Act; you just need to obtain an NOC from the Gram Panchayat."
Guidance on Office Registration and Statutory Records
I need a bit of guidance from you on this: if an office receives the NOC from the Gram Panchayat, would the registration of the office be unnecessary under any act? Additionally, could you provide guidance on which act mandates the maintenance of statutory records in this scenario?
An early response would be greatly appreciated.
Thanks and Regards,
Ratikanta Rath
From India, Durgapur
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Guidance on Office Registration and Statutory Records
I need a bit of guidance from you on this: if an office receives the NOC from the Gram Panchayat, would the registration of the office be unnecessary under any act? Additionally, could you provide guidance on which act mandates the maintenance of statutory records in this scenario?
An early response would be greatly appreciated.
Thanks and Regards,
Ratikanta Rath
From India, Durgapur
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Can Someone tell me if we want to check whether a company has a shop and establishment certificate how could we check the same.
From India, Mumbai
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From India, Mumbai
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if any branch comes under gram panchayat then is it required to get shop & establishment or NOC is enough. Plz let me know urgently.
From India, Kolkata
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From India, Kolkata
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Dear,
We have a project in Pune, and we are a secondary stakeholder of the project. We represent a subcontractor for the project and need to deploy the manpower for the work to be performed as per the requirements of the primary stakeholder.
So please clarify, do we need registration under the Bombay Shop & Establishment Act. My registered office is in Delhi, and I do not have any office in Pune.
Regards,
Rushpal Singh
8588860899
From India, New Delhi
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We have a project in Pune, and we are a secondary stakeholder of the project. We represent a subcontractor for the project and need to deploy the manpower for the work to be performed as per the requirements of the primary stakeholder.
So please clarify, do we need registration under the Bombay Shop & Establishment Act. My registered office is in Delhi, and I do not have any office in Pune.
Regards,
Rushpal Singh
8588860899
From India, New Delhi
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It was a very good piece of information. I have a query here: since they will get an NOC from the Gram Panchayat, aren't they still covered under the Shop and Establishment or Factories Act? For example, if I have an NOC from the Gram Panchayat to run a warehouse, according to the definition of a shop, I will be covered under the Shop and Establishment Act. Now, since we get an NOC from the Gram Panchayat, I will not register myself under the Shop and Establishment Act, yet all the provisions like the management of registers and working hours of my establishment will be governed under the Shop and Establishment Act, right? If not, under what rule or Act are they covered?
Please provide your valuable information on this.
Thank you.
Regards,
Smita
From India, Gurgaon
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Please provide your valuable information on this.
Thank you.
Regards,
Smita
From India, Gurgaon
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Gram Panchayat NOC will not exempt you from the obligation of registration under the S & E Act. You are required to register yourself under the S & E Act of the state in which you conduct your business. Gram Panchayat NOC is applicable in cases where registration under the municipal rules of a city or state is to be avoided. For example, a restaurant operating as a company on Gram Panchayat land may be exempt from obtaining a municipal health license, subject to certain conditions. The applicability is based on the area of jurisdiction. Compliance with any relevant Act must be ensured within its jurisdiction for implementation and adherence.
Thanks,
Regards, Raj Singh Phogat
From India, Delhi
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Thanks,
Regards, Raj Singh Phogat
From India, Delhi
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Hi Vishy,
You have mentioned that if the location falls under Gram Panchayat, there is no need to obtain a Shop Act license. We have another unit for which we have obtained a No Objection Certificate (NOC) from the Gram Panchayat, but it is not registered under the Shop Act. Can the NOC from the Gram Panchayat suffice in this scenario? Is it considered equivalent to a Shop and Establishment Act certificate?
Please reply.
Thanks!
Saunee
From India, New Delhi
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You have mentioned that if the location falls under Gram Panchayat, there is no need to obtain a Shop Act license. We have another unit for which we have obtained a No Objection Certificate (NOC) from the Gram Panchayat, but it is not registered under the Shop Act. Can the NOC from the Gram Panchayat suffice in this scenario? Is it considered equivalent to a Shop and Establishment Act certificate?
Please reply.
Thanks!
Saunee
From India, New Delhi
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Obtaining a labor license is mandatory in all states. In Andhra Pradesh, one can obtain the labor registration certificate under the A.P. Shops and Establishments Act, along with five other acts, integrated labor license through Mee Seva directly without having to wander to the local labor license office.
From India, Nellore
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From India, Nellore
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Yes, you have to obtain a labor license under the Contract Labor Act of 1970 from the Maharashtra Labor Department near your workplace. If your work is for the central government, then you have to obtain a license from the Central Assistant Labor Commissioner. If not, obtain a labor license from the Maharashtra State Labor Department and another labor license under the Shops and Establishments Act in New Delhi, applicable to your head office registration for the supply of manpower throughout the country.
From India, Nellore
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From India, Nellore
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Respected seniors,
In this thread, I have studied that registration under the S & E Act or Factory Act is mandatory to get registration in EPF & ESI. However, as per my knowledge, we can also use the service tax or sales tax registration to obtain registration in EPF & ESI. Hence, there is no need to obtain a license under the S & E Act and Factory Act.
Please correct me if I am wrong?
From India, Agra
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In this thread, I have studied that registration under the S & E Act or Factory Act is mandatory to get registration in EPF & ESI. However, as per my knowledge, we can also use the service tax or sales tax registration to obtain registration in EPF & ESI. Hence, there is no need to obtain a license under the S & E Act and Factory Act.
Please correct me if I am wrong?
From India, Agra
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In continuation with Smita's response, two possible queries come to mind, which are as follows:
1) If we obtain a Gram Panchayat NOC from the respective authority, would I need to follow the S&E checklist, or would there be a different checklist available under Gram Panchayat?
2) And if at all I don't obtain an NOC from Gram Panchayat, what are all the consequences and challenges under the state constitutions? As many of you are aware, the respective authorities wouldn't issue NOC certificates even after continuous follow-ups. I would be glad to get legal guidance under the above circumstances.
Also, please share some sort of experience that you have come across in the past.
Regards,
Janardan
From India, Mumbai
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1) If we obtain a Gram Panchayat NOC from the respective authority, would I need to follow the S&E checklist, or would there be a different checklist available under Gram Panchayat?
2) And if at all I don't obtain an NOC from Gram Panchayat, what are all the consequences and challenges under the state constitutions? As many of you are aware, the respective authorities wouldn't issue NOC certificates even after continuous follow-ups. I would be glad to get legal guidance under the above circumstances.
Also, please share some sort of experience that you have come across in the past.
Regards,
Janardan
From India, Mumbai
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Brief Kerla Shop & Establishment Act.pdf