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Process of Registration under Telangana Shops and Establishment Act, 1988

May 27, 2022

By Rupin Chopra and Apalka Bareja

The Telangana Shops and Establishments Act is applicable on all shops, commercial establishments, etc. A shop, under the definition provided by the Act, means any premises where any trade or business is carried on or where services are being rendered to the customers and may include offices, store rooms, godowns, warehouses, whether in the same premises or otherwise, which might be used in such connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory. A commercial establishment on the other hand refers to a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a café or any other refreshment house, a theatre or any other place of public amusement or entertainment. The establishment can be classified into four categories depending upon the composition

  • Proprietor Firm
  • Partnership Firm
  • Private Ltd. Company
  • Public Ltd. Company

It is one of the most important types of regulation under which an establishment or a shop for commercial use is required to register and comply with the provisions of the said Act. The objective of the Act is to consolidate and amend the Law relating to the regulation of conditions of work and employment in places such as shops, establishments, etc.[1].

Registration Process under Telangana Shops and Establishment Act, 1988[2]

It is necessary for every employer of an establishment to register under this Act if that establishment exist and, or is operating in the State of Telangana.

In case an establishment is already existing at the time of commencement of the Act then a period of thirty days is provided to the employer from the date of enactment of the Act to get their establishment registered.

In case of new establishments, the employer of the establishment is given a period of thirty days from the date of commencement of work of the said establishment. Within this period the employer has to send the concerned Inspector a statement concerning such particulars, documents, etc along with the fees as may be prescribed. On the receipt of such statement the Inspector will, according to the procedure and manner prescribed, register the establishment in the register of establishments.

After the Inspector has registered the establishment into the register a registration certificate would be provided by him to the employer who will be responsible for displaying the said certificate in a prominent place of the establishment.

The registration certificate is valid from the date on which it is being issued up to the 31st Day of December following.

If any change has to be made by the employer in the particulars of the statement that has been provided by him to the Inspector, then the said employer should give his intimation to the Inspector within fifteen days after the change has taken place. The inspector therefore on the receipt of such intimation, along with the fees prescribed, make the changes in the register of establishments and therefore amend the registration certificate or issue a fresh one whatever the case may be.

If the establishment has been closed then the employer has to give intimation and inform in writing to the inspector within fifteen days of the closure of the establishment. The Inspector, being otherwise satisfied, will then accordingly remove the name of the establishment from the register of establishments and cancel the registration certificate.

Renewal of Registration Certificate[3]

The application of renewal of the registration certificate has to be made to the Inspector in not less than thirty days before the expiry of such registration. After this period penalty may be levied as prescribed from time to time by the Government.

For example – the registration expires on 31st December therefore the penalty for Application submitted on or after 2nd December, but before 31st December would be 25% of the fees prescribed and such penalty would increase to 50% of the prescribed fees if the application is submitted on or after 1st January[4].

The period of renewal of Certificate of Registration shall be one year or up to three years from the date of its expiry, at the option of the employer commencing from the date of expiry.

Revocation or Suspension of Registration Certificate[5]

The inspector has the power to revoke or suspend the registration certificate if he is satisfied with the fact that registration certificate granted or renewed has been obtained by fraud, mis representation, or suppression of any material fact.

The revocation can also happen if the employer has voluntarily or wilfully contravened any the provisions of the Telangana Shops and Establishments Act, 1988.

Appeal[6]

An appeal may be made by the aggrieved person (employer) to any authority prescribed under this Act within thirty days from the date on which the order of revocation or suspension is communicated to him. The appellate authority should dispose of the appeal within two months and shall provide the appellant with a reasonable opportunity to be heard.

If the appeal is ruled in favour of the appellant, then the registration status of the employer (appellant in this case) would be restored by the competent authority.

This in whole summarises the process of registration under the Telangana Shops and Establishments Act, 1988 and the time period prescribed for various stipulations.

 

[1] Telangana Shops and Establishments Act, Preamble, Act of Andhra Pradesh State Legislature, 1988

[2] Telangana Shops and Establishments Act, §3, Act of Andhra Pradesh State Legislature, 1988

[3] Telangana Shops and Establishments Act, §4, Act of Andhra Pradesh State Legislature, 1988

[4] The Telangana Shops and Establishments Rules, §3(7), State of Telangana, 1990

[5] Telangana Shops and Establishments Act, §5, Act of Andhra Pradesh State Legislature, 1988

[6] Telangana Shops and Establishments Act, §6, Act of Andhra Pradesh State Legislature, 1988

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