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Anil Agrawal (Retired)     13 August 2009

Shops Act

 Does a private limited company require to obtain licence under Shops and Establishment Act?



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 4 Replies

badrinath (Sr.Manager-human resources)     14 August 2009

i take that its a "manufacturing company"  and if its so, they have to get  "Factory licence" under the factories Act.  they need not  get  licence  under  shops and establishment  Act.

shaeilesh (lawyer)     14 August 2009

The private limited co need not to register as per shop and establishment act. but the company must register under the companies act 1956.

Anil Agrawal (Retired)     30 August 2009

 Section 2(4) of S&E Act says:

(4) "Commercial establishment" means an establishment which carries on, any business, trade or profession

A private limited company certainly carries on some business. How can it not be covered under the Act. 

Ashish Ovalekar (Manager Legal & Compliance)     04 September 2009

Dear Mr. Anil,

You are right in stating that every commercial establishment needs to be registered under the Shops Act, if they are not covered under the Factories Act, or Mines Act.

Most of the High Courts have interpreted the definition of Industry in different terms, and hence the State Government have been through notifications are increasing the applicability of the act to more and more trades, professions and businesses. 


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