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Shops and Establishments Act – Noida

April 21, 2022

By Rupin Chopra and Apalka Bareja

U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962

The U.P. Dookan aur Vanijya Adhishthan Adhiniyam, 1962 is applicable on all shops and commercial establishments throughout the city of Noida and rest of Uttar Pradesh. All establishments are required to register under the Act.

In Noida, the U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 is applicable as the Act extends to the whole of Uttar Pradesh.

Background

The Act was enacted to regulate the hours of employment in shops and commercial establishments and to also provide for holidays. The U.P. Shops and Commercial Establishments Act was enacted first in 1947 but due to it various shortcomings and deficiencies, the Act was repealed and a comprehensive Bill incorporating the necessary provisions was passed in 1962 to consolidate and amend the laws regulating the conditions and employment of employees in shops and other establishment.

The term ‘shop’[1] under the Act means any premises where any retail or wholesale business is being carried on or where any type of services are being rendered to the customers. It includes the offices, godowns, warehouses which might be used in connection with such business. They do not have to be in the same premises.

The term ‘Commercial establishment’[2] refers to any premises where any type of trade, business, manufacturing or any work which is in connection to such business is carried on for profit, such as a place where journalistic or printing work is being carried on or business of banks, shares, product exchange, theatre, cinema or any other place for public amusement or any other establishment of a factory. But the premises of a factory will not be classified under the term ‘commercial establishment’.

Registration Process under Shops and Establishments Act

Section 29[3] of the Act provides for the appointment of a Chief Inspector and a Deputy Chief Inspector and other Inspectors as per the requirements as may be considered necessary by the State Government. Such inspector is primarily in charge of keeping a check on the shops and establishments in their areas. Such personnel are also in charge of the registration and regulating the records and other documents of these shops and establishments.

The Act stipulates that for the registration of a shop or a commercial establishment under the Act, the owner has to send a duly filled application form to the Chief Inspector along with the fees prescribed for such registration.

The registration can even be done online by going on the labour department’s website[4] of the Government of Uttar Pradesh. There you can find the option for registration as well as renewal both.

The documents required to be submitted at the time of applying for registration are:-

  1. Certificate of the Incorporation, Memorandum of Association, and Articles of Association of the company;
  2. Cancelled Cheque and Bank Statement
  3. An affidavit has to be submitted by the owner
  4. Legal Occupancy document proof of the establishment/unit or allotment letter of the government agency;
  5. Documentary proof of establishment of trade,
  6. Lease Deed of the constitution
  7. NOC (No Objection Certificate) from the land-owning agency
  8. Documentary proof regarding the non-existence of unauthorized construction
  9. IT returns and Property Tax Receipt

Registration fees for Shop

Category Fee (per financial year or part of the year)
With no employees 40
1-5 employees 200
6-10 employees 300
11-25 employees 500
More than 25 employees 1000

*Source[5]

Registration fees for Commercial Establishment

Category Fee (per financial year or part of the year)
With no employees 80
1-5 employees 300
6-10 employees 400
11-25 employees 1000
More than 25 employees 2000
Commercial establishment which is used as theatre or cinema or for any other public amusement or entertainment or Barat Ghar or Guest houses 1000
Hotel up to three-starred standard 2000
Four or five-starred hotels or hotels of like standard 5000
Any shop or commercial establishment having ownership of registered

company employing 1 to 25 employees

1000
Non-Banking Financial Institution/ Adhishthan 2000

*Source[6]

The owner has to apply for registration under the Act within three months from the date of commencement of such business of the establishment. After the application has been made by the owner, it will be duly checked by concerned inspector and upon satisfaction he may register the name of the establishment in the register of establishment and  issue a registration certificate to the owner.

Renewal of the Registration Certificate

The validity of the registration certificate is up to five years[7] from the date of registration and may be renewed after the expiry of such period. The second time also the renewal would be of five years but after that the owner can get the registration certificate renewed for a period which may extend to ten years on the payment of the prescribed fees. An application has to be made to the concerned Inspector for renewal of the registration certificate. The application can be made on a plain paper with the following details

  • Name of the owner
  • Name and address of the shop/commercial establishment
  • Number of employees

(Along with the prescribed fee)

If an application for registration or renewal is not made within the stipulated time then owner is liable to pay a late fee along with the prescribed fees. The late fees should be calculated at the rate of 12-1/2 per cent of the fee of registration or renewal, per month and shall be made in addition to the prescribed fees for registration or renewal whatever the case may be.

Amendment in the registration certificate

If any changes have to be made in the registration certificate, then the owner will have to communicate the changes to the Inspector within fifteen days of such change. For example – if there has been a change in the number of employees, or the address of the establishment, etc. The concerned inspector will then look at the necessary changes and, after inquiry on being satisfied with the correctness of the facts presented by the owner, make the necessary changes in the register of establishments and the registration certificate or issue a fresh one, whatever may be necessary[8]. The registration certificate has to be displayed by the owner in a prominent and conspicuous place in his establishment[9].

This summarises the registration process under the U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 in accordance with the U.P. Dookan Aur Vanijya Adhishthan Niyamavali, 1963.

 

[1] The U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, §2 (16), Act of Uttar Pradesh Legislature, 1962

[2] The U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, §2 (4), Act of Uttar Pradesh Legislature, 1962

[3] The U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, §29, Act of Uttar Pradesh Legislature, 1962

[4] Labour Department, Government of Uttar Pradesh (Online Website) http://www.uplabour.gov.in/

[5] The U.P. Dookan Aur Vanijya Adhishthan Niyamavali, §4-B (2), Act of Uttar Pradesh Legislature, 1963

[6] The U.P. Dookan Aur Vanijya Adhishthan Niyamavali, §4-B (2), Act of Uttar Pradesh Legislature, 1963

[7] U.P. Dookan Aur Vanijya Adhishthan Niyamavali, §4-B (4), Act of Uttar Pradesh Legislature, 1963

[8] U.P. Dookan Aur Vanijya Adhishthan Niyamavali, §4-B (6), Act of Uttar Pradesh Legislature, 1963

[9] U.P. Dookan Aur Vanijya Adhishthan Niyamavali, §4-B (13), Act of Uttar Pradesh Legislature, 1963

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