Shop & Establishment Registration Delhi – The backbone of commercial establishments

The act of purchasing has always been an integral aspect of a human being’s life. From clothes to grocery shopping, these businesses benefit us and create a rush of excitement when we head to these stores. However, it is essential to understand how we attain our happiness has its set of rules based on its functions.

In Delhi, the businesses, to work on the same as aforementioned, follow the Delhi shops and Establishments act.

The Shops and Establishments Act

In general, all businesses must follow the guidelines and rules provided by the Weekly holiday act, 1942; when focusing on the intricacies of how corporate establishments function, the following statute is different.

Enacted by the central government, the Weekly holiday act emphasises the grant of holidays only. However, the Shops and Establishments Act brought upon the state governments extends to defining work hours, payment of wages, health and safety provisions of a commercial business establishment.

The Delhi Shops and Establishment Act

The Delhi Shops and Establishments act applies to all shops, commercial establishments, and corporate businesses found within the state of Delhi in India.

The statute defines a “Shop” as:

Any premise where goods either get sold by retail/ wholesale or provide services to customers. It also includes an office, a store-room, godown, warehouse or workhouse or workplace, whether in the same premises or otherwise which is used in or in connection with such trade or business. The definition does not include a factory or a commercial establishment.

The statute defines an “Establishment” as:

This Act applies to any shop, commercial establishment, residential hotel, restaurant, eating-house, theatre, or other public amusement or entertainment places. It also includes other establishments as Government may, by notification in the Official Gazette, declare to be an establishment regarding this Act.

The statute defines a “Commercial establishment” as:

Any premise wherein any trade, business or profession or any work in connection with, is carried on.

It includes a society registered under the Societies Registration Act, 1860, and charitable or other trusts, whether registered or not, which carries on any business, trade or profession or work in connection with journalistic and printing establishments, contractors and auditors establishments, quarries and mines which the Mines Act, 1952, does not govern.

The definition also comprises educational or other institutions run for private gain and premises where banking, insurance, stocks and shares, brokerage or product exchange gets carried on. It does not include a shop or a factory registered under the Factories Act, 1948 or theatres, restaurants, cinemas, eating houses, residential hotels, clubs or other places of public amusements or entertainment.

The Delhi Shops and Establishment Act registration

Within 3 months, all commercial establishments, businesses, and shops functional and based in Delhi must apply for registration under the Delhi Shops and Establishments Act. The form of the application must consist of the following information in the presented format:

  • Name of the Employer
  • Name of the Manager (if any)
  • Postal address of the commercial establishment
  • Name of the establishment
  • The type of the establishment- Shop/commercial establishment/ residential hotel/restaurant/ theatre/ place of entertainment etc
  • The working employees in the establishment

The highlights of the Delhi Shops and establishment act

The act focuses on:

  • Work hours in Delhi: The statutes grants:
    • No adult is required to indulge in work for more than nine hours per day or twenty-four hours a week.
    • If the work gets done so post 9 hours or 48 hours in a week, then overtime wages must get paid to them.
    • The adults shall not exceed five hours in respect to continuous working. The period of working for an adult must get fixed.
    • The adult should be given at least half an hour for resting and eating.
  • Employment of children, young people or women in Delhi: The statute states that:
    • No child is allowed to work as an employee or under any other position in a business.
    • No young person employed can work post 6 hours in a day.
  • Holidays for establishments in Delhi: The statute suggests that:
    • Every employee must get one day holiday, 24 hours of rest minimum per week.
    • Every commercial establishment must be shut on three national holidays per year when notified by the government in the official gazette regarding closed days.

The procedure For Registration Under Delhi Shops and Establishments Act

The first step is to register the commercial establishment using online forms that can get filled by the Department of Labour, Government of Delhi. The form must refer to the Delhi shops and established rules of 1954.

The second step is verification. After receiving the application, a chief inspector shall be responsible for verification and post the officer’s satisfaction regarding the authenticity of the statement made in the application; he shall register the business. The officer will grant the owner of the business a registration certificate, hence concluding the registration process.

The requirements For Shop Registration in Delhi

The documents needed for the shop and establishment registration in Delhi are as follows:

  • Utility Bill of establishment
  • PAN card or Aadhar card
  • Passport size photographs of the owner
  • Rental agreement if rented
  • Property papers if the owned

Shop Establishment registration fees in Delhi

The shop and establishment registration fees in Delhi depends solely on the number of employees appointed in the business or commercial establishment.

If there are:

  • 0 employees, then Rs.5
  • Less than 10 employees, then Rs.15
  • 10 to 15 employees, then Rs. 30
  • Above 25 employees, then Rs.50


From focusing on work hours, holidays granted to the requirements for registering a shop in Delhi, the shop and establishments act is how every shop functions.

The shop and establishment licence, the most crucial document for the owner, serves as a huge benefit for the working employees. Due to the better working conditions, the increased efficiency of the employees helps the customers as well. The statute is truly the backbone of every shop/establishment.

FAQs on Shop & Establishments Act Delhi

What records are to get maintained under the shops and establishment act?

Employment records, fines, deductions, advances, salary and holidays etc

Within how many days should the owner register their shop in Delhi?

Within 30 days of starting their business

What are the objectives of the statute?

To secure uniform benefits for employees working in different establishments in Delhi.

When did the shop establishment registration come into force?

From 1st of February, 1955

Who verifies the registration application and grants the registration?

The chief inspector

About Author

Holding the title of Tiara Miss India Tourism- First runner-up 2019, I am Varenya Vaish, a mass media graduate, currently pursuing LLB.

From working for the betterment of animals to travelling without any hindrance, exploring, learn and growing is my motto!