Shop & Establishment License — State-Wise Guide for Indian Businesses (2026)
Shop and Establishment License — state-wise, process, documents, fees, renewal. Mandatory for shops, offices, commercial establishments.
A Shop & Establishment License is mandatory for all commercial establishments in India under the respective state's Shop & Establishment Act. In this guide, we cover the registration process, state-wise variations, and renewal.
What is a Shop & Establishment License?
A Shop & Establishment License is a registration certificate issued by the state Labour Department. It is mandatory for any commercial establishment — shop, office, warehouse, hotel, restaurant, salon, clinic, etc. Governed by the respective state's Shop Act.
Who Needs It?
- All shops (retail + wholesale)
- All offices (Pvt Ltd / LLP / Partnership / Sole Prop)
- Warehouses + godowns
- Hotels + restaurants + cafes
- Salons + spas + beauty parlours
- Clinics + diagnostic centres
- Co-working spaces
- Manufacturing units (some states)
- E-commerce sellers with physical office
Documents Required
- PAN of the establishment
- Aadhaar of the proprietor / partners / directors
- Address proof of the establishment (rent agreement + NOC + utility bill)
- Photos of the establishment (front, interior)
- List of employees (name, address, date of joining)
- Salary structure (for employees)
- Certificate of Incorporation (for companies)
- LLP Agreement (for LLPs)
- Partnership Deed (for partnerships)
- Trade License (in some states)
State-Wise Variations
| State | Act | Validity | Online Portal |
|---|---|---|---|
| Maharashtra | Bombay Shop & Establishment Act | 1 year (renewable) | Mahakosh |
| Karnataka | Karnataka Shops & Commercial Establishments Act | 1-5 years (renewable) | SeWA Karnataka |
| Delhi | Delhi Shops & Establishment Act | 5 years (renewable) | Edistrict Delhi |
| Tamil Nadu | Tamil Nadu Shops & Establishment Act | 1 year (renewable) | TNeGA |
| Gujarat | Gujarat Shops & Establishment Act | 1-3 years (renewable) | iORA Gujarat |
| West Bengal | West Bengal Shops & Establishment Act | 1 year (renewable) | WB Labour |
| Telangana | Telangana Shops & Establishment Act | 1 year (renewable) | TS Labour |
Registration Process
Step 1: Register on State Portal
Most states have online portals. Maharashtra: Mahakosh. Karnataka: SeWA. Delhi: Edistrict. Register and login.
Step 2: Fill Application
Fill: establishment name, address, owner details, employees, business activity.
Step 3: Upload Documents
Upload: PAN, Aadhaar, address proof, employee list, photos.
Step 4: Pay Fee
Pay online fee. Varies by state: ₹200-₹5,000.
Step 5: Get License
License is generated digitally. Download as PDF. Display at the establishment.
Cost
| Service | Cost |
|---|---|
| Shop Act License (1-year validity) | From ₹1,499 |
| Shop Act License (3-year validity) | From ₹2,499 |
| Shop Act License (5-year validity) | From ₹3,499 |
| Renewal of Shop Act License | From ₹999 |
| Our service fee (state-wise) | From ₹1,499 |
Penalty for Non-Compliance
- Operating without Shop Act License: ₹1,000-₹10,000 per month + prosecution
- Late renewal: 25% surcharge + interest
- Failure to maintain register of employees: ₹500 per violation
- Failure to display license: ₹500 per day
- Other violations: up to ₹25,000 + imprisonment (state-wise)
Frequently Asked Questions
Q: Is Shop Act License mandatory for online businesses?
A: If you have a physical office, warehouse, or employees in a state, yes. Pure online businesses (with no physical presence) may not need it. But once you hire employees in a state, get it.
Q: What is the difference between Shop Act and Trade License?
A: Shop Act: Issued by Labour Department, for the business (employees, working conditions, hours, leave). Trade License: Issued by Municipal Corporation, for the premises (zoning, safety, hygiene). Both are typically required.
Q: How long does Shop Act registration take?
A: 1-7 days depending on the state. Most states: 1-3 days with online portal.