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'Shops and Establishments Act' basics

Shops & Establishment License

Running a shop or an office and are not sure about the rules?

Save yourself from some possible harassment. These are answers to some of your possible questions as per ‘The Bombay Shops and Establishments Act, 1948’.

A shop includes any premises where goods or services are sold and includes an office, a store-room, a warehouse or godown. An establishment includes an eating place, a hotel or entertainment place like theater.

Documents needed for a "Shops and Establishments" license:

  • Filled up "Form A", describing nature of operations, to be submitted at the License department of the local BMC ward office, with an Undertaking.

  • Fees of Rs 1,400 per annum (depends on number of employees).

  • If rental property, then rent receipt, landlord NOC and rental agreement

  • If owned property, then society maintenance receipts

  • Electricity bill copy

  • Visiting/ Business cards, showing address of the enterprise

  • If you are a Professional like a Chartered Accountant, Advocate, Lawyer or a Doctor, you do NOT need a license. Exception is if the Doctor is running over 2-bed clinic. Download the relevant High court order:

  • If you are running a trade or a business (not a profession) with customers coming in, which may cause annoyance or nuisance to neighbours, you may need a license.

  • To "change user" from a residential room into commercial, BMC's permission is required (Maharashtra Rent Control Act, section 30 and also MRTP Act). However if premises are part residential and part commercial, but dominant user is still residential, then there is no "change of user" and a license is not required.

  • For renewal of the license, please fill up Form "B".

You can also apply on-line at www.mcgm.gov.in. You can track your application using your Unique Application No.


Form A - http://www.diehardindian.com/ngo/download/SE-formA.pdf

(Undertaking) - http://www.diehardindian.com/ngo/download/SE-formA-ut.pdf

Renewal Form B - http://www.diehardindian.com/ngo/download/SE-formB.pdf

Initial Scrutiny Checklist to be attached along with form A:
For Proprietary firm
- Undertaking

For Partnership firm
- Undertaking
- Deed of partnership
(proving company is a legal entity)

For Public/Private Ltd. Company
- Undertaking
- Memorandum of Article and Memorandum of Association
- List of Directors with Residential Address

If you are making a change, you must notify the Inspector within 15 days of the change. After due inspection, he will issue a new certificate or make a correction to the existing certificate.

If you are closing your establishment, then you must notify the Inspector in writing and return your registration certificate

Other basic questions:

  1. Does the “Shops and Establishments” certificate have to be displayed prominently in the shop? YES.
  2. Does a Visitor’s book have to be made available for officers/ staff from the BMC who come to inspect the shop owner’s premises? YES.
  3. Does the signboard of the shop have to have Marathi script? YES.
  4. Is it compulsory for a shop owner in Mumbai to keep the shop closed for one day in a week? YES.
  5. Can wages of permanent employees be deducted for the weekly off day? No.
  6. Can the shop-owner choose the day of the week, for which he wants to keep the shop closed? YES. But that day will be either Sunday (Public holiday under the Negotiable Instrument Act, 1881) OR Monday (Zonal weekly off as fixed by BMC, but implemented by S&E Senior Inspector).
  7. If the shop owner wants to change the day of the weekly off (from Sunday to Monday or vice versa), does he have to give it in writing to the BMC, during the annual renewal? YES.
  8. Is the license fee schedule based on number of workers in the shop? YES. For eg. annual registration fee for shops having 1-5 employees is Rs 300 and for 6-10 employees is Rs 600 and so on.

This information is as obtained from the BMC. For further clarifications, please check with local BMC ward office or with their main office at:

Office of the Chief Inspector - Shops and Establishments
4th Floor, Bhimabai Rane BMC school bldg
Raja Rammohan Roy Marg,
Opp Central Plaza Cinema,
Girgaon, Mumbai 400004
Tel: 23616961

Gaurang Damani



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