Shop n Establishment

SHOPS AND ESTABLISHMENT

Any citizen who wishes to open new shop or a commercial establishment wants to commence its business within the jurisdiction of Government of Maharashtra, has to register itself under The Bombay Shops and Commercial Establishment Act, 1948.

The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 came into effect December 20, 2017. The 2017 Act replaces the Maharashtra Shops and Establishment Act of 1948.

Previously, the federal government enacted the Model Shops and Establishments Act in 2016 that revised the regulatory norms for operating commercial establishments in India. Following this, several states initiated legislation to implement the new rules in their respective state jurisdictions.

Maharashtra is the first state in India to draft the new Shops and Establishments law. The law is applicable to all commercial establishments in the state, (not covered under the Factories Act), which employ 10 or more workers.

Firms that employ more than 10 workers must obtain a license under the Maharashtra Shops and Establishments Act within 60 days after the new Act comes into effect or once a firm’s current license expires. The registration can be done online, and all records will be maintained electronically. Further, the commercial entity can determine the validity period of its registration, which cannot exceed 10 years. Firms which employ less than 10 works must still register under the Act but do not require a license.