Have you started your shop or a new business in the Punjab region? If yes, then you should know that registration under the Punjab Shops And Commercial Establishments Act, 1958 using Form F and B is compulsory for all businesses whether they are shops or hotels, food houses, local restaurants, city theaters, or public entertainment places. Under this act, you must submit the application form within 30 days of starting any such new business.
Now, it might sometimes be difficult for you to understand the rules related to the registration process using mandatory forms and eligibility of your new shop or any kind of business under the Punjab Shops and Commercial Establishments Act, 1958 because such application forms are filled with many complicated details.
So, what are the things that you must be aware of in this act and what do you need to know for the registration of your business? Here is the comprehensive guide for your assistance.
What is the Punjab Shops and Commercial Establishments Act?
The Punjab Shops And Commercial Establishments Act, 1958 is the primary legislation governing the registration of shops and commercial establishments in the state of Punjab, India. The Act applies to all shops and commercial establishments except those falling under the Central enactments or those which the state government may exempt by way of notification.
All shops and commercial establishments must be registered with the relevant municipal authority within a specified period from the date on which they commence business operations. The Act prescribes the conditions of employment for workers in shops and commercial establishments, including hours of work. It also prescribes certain conditions under which a shop or commercial establishment may be closed, such as holidays and strikes.
Definition of ‘Shop’ and ‘Commercial Establishment’ as per the Punjab Shops & Commercial Establishments Act, 1958
Concerning Section 2(1)(xxv) of the Punjab Shops and Commercial Establishments Act 1958, the “shop” can be any premises where any trade or business is carried on. It can also be a place where services are rendered to customers and includes offices, store-rooms, godowns, sale-depots or ware-houses, whether on the same premises or otherwise, used in connection with such trade or business.
But, a ‘shop’ does not mean a commercial establishment or a shop attached to a factory where the employees are entitled to the benefits provided under the Factories Act, 1948 (LXIII of 1948).
Section 2(1)(iv) of the same act implies that a commercial establishment means any premises wherein any business, trade or profession is carried on for profit.
It also includes journalistic or printing establishment and premises in which business of banking, insurance, stocks and shares, brokerage and produce exchange is carried on or which is used as a hotel, restaurant, boarding or eating house, theater, cinema or another place of public entertainment or any other place which the Government may declare to be a commercial establishment for this Act.
What are the key provisions of the Act?
The Punjab Shops And Commercial Establishments Act, 1958, is a state law governing shops and commercial establishments in the state of Punjab, India.
The act covers a wide range of topics, including hours of work, leave, holidays, wages, and more and it is designed to protect the rights of workers and to ensure that they are treated fairly by their employers. Some of the key provisions of the act are as follows:
● The Act applies to all shops and commercial establishments that employ 10 or more employees.
● The Act contains several provisions that are designed to protect the rights of employees, including provisions on hours of work, leave, holidays, and overtime pay.
● The Act also requires employers to provide certain benefits to employees, such as restrooms and drinking water.
● The Act provides for the registration of shops and commercial establishments, hours of work, annual leave, sick leave, pay and other conditions of service of employees, and the health and safety of employees.
● One of the most important provisions of the Act is the requirement for employers to maintain registers of employees, which must be made available for inspection by the authorities.
● The Act also requires employers to display certain information at their premises, such as the names and addresses of the proprietor and manager, the nature of the business, etc.
● The Act also requires that every shop and commercial establishment display a notice containing the particulars of the Act and the rules made thereunder, and the certificate of registration issued to the employer by the Registrar.
Documents Required for Shop and Establishment Registration
While registering online, you must keep the following documents scanned and ready with you:
● Address proof of shop/commercial establishment
● Photo of the shop/commercial establishment’s front entrance
● Photo of the shop/commercial establishment’s interiors
● Identity proof of owner/directors
● Scanned copy of the signature of the applicant
● A copy of the resolution, duly stamped on the company letterhead, permitting the partner/director to apply for shop and establishment act registration.
● Power of Attorney
● Memorandum of company
● List of directors of the company
● PAN card of company and directors
What is Form F and B?
Form F requires the details of your Shop/Commercial Establishments including the personal details of the owner/MD.
In Form B, you need to provide the Departmental details such as the working hours of your employees.
Role of Walia Associates
If you want to know exactly what you need to get your Shop and Establishment registered, you can contact Mr. Harpreet Singh Walia, one of the Top HR Consultants in India.
He is an experienced legal expert at Walia Associates who provides you professional advice on registering for the same by filling the necessary Form F and Form B under this act, so that you do not face any difficulty from filling and submitting the application to getting the registration certificate.
Frequently Asked Questions (FAQs)
Q: What is the Shop and Establishment Act of Punjab?
A: The Punjab Shops And Commercial Establishments Act, 1958 is a state law that regulates the working conditions of employees in shops and commercial establishments in the state of Punjab, India.
Q: What is the difference between a shop and a commercial establishment?
A: According to Section 2(1)(xxv) of the Punjab Shops and Commercial Establishments Act 1958, a shop refers to the place where the services are rendered to customers. It also includes offices, store-rooms, godowns, sale depots or warehouses. Whereas, by the commercial establishments, section 2(1)(iv) of the same act means any premises used for running a business, trade or profession for profit. It includes journalistic or printing establishments, premises of banking, insurance, stocks and shares, brokerage and produces exchanges like the hotel, restaurants, boarding or eating houses, theatres, cinemas or other places of public entertainment.
Q: Is a shop and establishment license compulsory?
A: Yes, it is mandatory to get your shop or commercial establishment registered under the Punjab Shops and Commercial Establishments Act, 1958.
Q: Is there any penalty for not registering my business under Punjab Shops and Commercial Establishments Act, 1958?
A: Yes, the act includes a penalty for not doing so. As per the sub-section 6 inserted by Haryana Act 1 of 1997 under section 13 of Punjab Shops and Commercial Establishments Act, 1958, in case of any contravention of, or failure to comply with the provisions of this section, the employer shall be liable, on conviction, to a fine, which shall not be less than one thousand rupees but which may extend to three thousand rupees along with the prescribed registration or renewal fee, as the case may be.
Q: How can I get a shop establishment certificate in Punjab?
A: You can avail the certificate of your shop or establishment by registering under the Punjab Shops and Commercial Establishments Act, 1958 and filling the Form F and B. you also need to submit certain documents like address proof of shop/commercial establishment, photo of the shop/commercial establishment’s front entrance and interiors, identity proof of owner/directors and a few more.