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Applicability of shops & establishments act

(Querist) 14 November 2013 This query is : Resolved 
My Head Office (H.O) is in Delhi and three branches are in Mumbai, Kolkata and Bangalore. The branches which are mainly warehouses run through service providers but all VAT & other licences are in the name of my company. there is no staff employed by me there except the brach head which is on HO roll. All support staff is engeged by service providers. I want to know whether shop and establishment act of the respective states i.e. Maharashtra, Karnatake and W.B. in applicable in my branches even if i do not have any own staff there and am I suppose have registration of Shops & Establishment Act at those branches.

Please share your views. Thanks & regards

P.C. joshi
BAALASUBRAMANNYAMM (Expert) 14 November 2013
kindly read and verify it is applicable to you or not
This was taken under Shops & Establishment Acst.
(5) "commercial establishment" means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, contractors and auditors establishments, quarries and mines not governed by the Mines Act, 1952 (35 of 1952), educational or other institutions run for private gain, and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on, but does not include a shop or a factory registered under the Factories Act, 1948 (43 of 1948), or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment;
"employer" means the owner of any establishment about the business of which persons are employed, and where the business of such establishment is not directly managed by the owner, means the manager, agent or representative of such owner in the said business;
(9) "establishment" means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies and includes such other establishment as Government may, by notification in the Official Gazette, declare to be an establishment for the purpose of this Act;
Hemant Agarwal (Expert) 14 November 2013
Each and every unit, that conducts business for the Principle, will have to have a S&E registration and Trade licence, in Mumbai, irrespective of the number of persons employed or not employed.

Keep Smiling .... Hemant Agarwal
Rajendra K Goyal (Expert) 14 November 2013
Each Branch has to observe respective State Shops & Establishment rules irrespective of Staff employed there.
P.C. Joshi (Querist) 14 November 2013
Dear Friends,
Thank you very much for valuable inputs. as you can see from the facts of my case. There is no employee directly employed by me but the manpower being used is employed by the service provider, whom I am paying commission for providing services.

Now my question is whether I am suppose to get registration under the Shop & Establishment ACt or my my service provider or both. Please let me have a considered view please.


P.c. Joshi
Raj Kumar Makkad (Expert) 14 November 2013
You shall have to get registration under the act as the issue of employment of manpower working with you, has no connection with the registration.
Hemant Agarwal (Expert) 15 November 2013
for "P.C.JOSHI"

If your "service provider" is going to manage your business affairs in mumbai AND if the service provider is going to display his Business Name Board, outside his business premises, THEN it would be best for you to refrain from obtaining the S&E registration and Trade licence, in Mumbai.

HOWEVER, you should direct your service provider to register and obtain S&E registration and Trade licence, under the name of the service provider.

Keep Smiling .... Hemant Agarwal

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