The Madhya Pradesh Shops and Establishments Act,1958 is a state specific act which govern the operations of businesses across the Madhya Pradesh state. This legislation ensures that commercial establishments, shops, and businesses adhere to specific legal standards, protecting both employers and employees. Whether you are starting a new business or already running one, understanding the requirements and benefits of registration under this Act is essential. Praans Consultech provides hassle free and quick Shop and Establishment Registration in Madhya Pradesh.
What is the Shops and Establishments Act?
The Madhya Pradesh Shops and Establishments Act is a state-level legislation that governs the regulation of employment conditions in shops, commercial establishments, and other workplaces within Madhya Pradesh. Its primary objective is to ensure fair working conditions, protect employees’ rights, and establish a structured framework for business operations.
Who Needs to Register?
Within 30 days of opening for business, any shop or commercial establishment must register with the local labour authority. Business operating in Madhya Pradesh that falls under the following categories must register under the Act:
Shops and commercial establishments
Restaurants and hotels
Theatres, amusement parks, and other entertainment hubs
Advertising & Commission agency
Insurance Company and Bank
Joint stock company, Broker’s office and Exchange;
Any premises used for trade or business activities
Shops & Establishments exempted under the Act
Persons with managerial positions or persons working in a confidential position should not exceed 10% of the establishment’s entire workforce or three employees, whichever is lower
Persons whose work is infrequent in nature, as in the case of a traveller or canvasser
Persons exclusively engaged to do preparatory or supplementary tasks, like clearing or forwarding clerks, are in charge of shipping products by rail or other channels, as well as handling customs procedures or messengers
Person who works only in in the collection, delivery or conveyance of goods
Union or State Government or of local authorities and of the Reserve Bank of India, the State Bank of India and the office of Life Insurance Corporation
Facilities for the treatment or care of people who are mentally unfit, sick, disabled, or poor
Fairs, bazaars, or exhibitions where artwork is sold for charity or for non-profit purposes
Railway dining trains or stations with stalls and refreshment rooms
Clubs not being residential clubs
Benefits of Shop and Establishment Registration in Madhya Pradesh
Registering your shop or establishment is mandatory and offers several advantages, such as:
Legal Recognition: It validates your business operations under state law.
Compliance: Helps businesses adhere to labour laws and avoid penalties.
Employee Benefits: Ensures fair treatment of employees, fostering trust and loyalty.
Credibility: Demonstrates the business’s commitment to legal and ethical practices.
Documents Required for Registration
Voter ID card, PAN card and Aadhaar card of the owner
Passport size photo of the applicant
Address proof of owner (Ration card/Electricity Bill/Telephone Bill/LPG Connection documents/Ownership Deed/Rental Agreement)
List of employees having name, designation, date of joining, father’s name and gross salary
PAN card of the firm
Address proof of premises (Electricity Bill/Telephone Bill/ Ownership Deed/Rental Agreement
Partnership Deed/Memorandum of Article
Sign board photo through MO online Geo Tagging application.
Registration Fee for Shops and Establishments in Madhya Pradesh
Number of Employees | Registration Fee | Validity |
No employees | Rs.100 | Lifetime |
1 to 3 employees | Rs.150 | |
4 to 10 employees | Rs.200 | |
More than 10 | Rs.250 |
Timelines for Approval and Registration Validity
The registration process typically takes 7-10 working days. Registration certificate remains valid for lifetime.
Important Compliance Requirements under the Act
Working Hours and Overtime
Employees can work maximum 9 working hours in a day and 48 hours in a week.
Overtime must be compensated at twice the standard wage rate.
Holidays and Leave
Weekly holiday is mandatory.
Maximum of 30 days of earned leave after 12 months of employment and 14 days of casual leave.
Wages and Salary
Wages must be paid on time by employers.
No unauthorized deductions are allowed.
Health and Safety
Businesses must maintain safe and hygienic working conditions.
Facilities such as clean drinking water and restrooms are required.
Record Maintenance
Employers must maintain:
Attendance registers
Records of wage payments
Leave registers
Registers of fines and deductions
Penalties for Non-Compliance
Non-compliance with the Madhya Pradesh Shop and Establishment Act can lead to severe consequences, including:
Monetary fines
Legal action for continued violations.
Suspension or closure of the business in extreme cases.
Frequently Asked Questions (FAQs)
Who must register in accordance with the Shop and Establishment Act of Madhya Pradesh?
The Act requires registration for all commercial establishments, including shops, offices, lodging facilities, and dining establishments.
How soon should I register my business?
Within 30 days after the starting of the business operations.
Can small businesses or single-owner shops skip registration?
No, even small businesses and sole proprietorships are required to register under the Act.
How long is the registration certificate valid?
The certificate is usually valid indefinitely unless there are significant changes in the business, such as a change of address or ownership.
What are the consequences for failing to register?
Penalties include fines, legal actions, and potential business closure for repeated non-compliance.
How can I update my registration details?
Submit a request for amendments to the labour office with updated documents.
Can I cancel my registration?
Yes, if the business shuts down, you must inform the labour department and apply for deregistration.
Is there any registration fee under the act?
Yes, registration fee is required and it depends on number of employees.