'Shop and Establishment Act' basics
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 Shop and Establishment Act, 1948’.
needed for a "Shop and Establishment" 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).
rental property, then rent receipt, landlord NOC and rental agreement
owned property, then society maintenance receipts
Electricity bill copy
Visiting/ Business cards, showing address of the enterprise
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 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.
"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.
renewal of the license, please fill up Form "B".
Form A -
Renewal Form B -
Checklist to be attached along with form A:
For Proprietary firm
For Partnership firm
- Deed of partnership
(proving company is a legal entity)
For Public/Private Ltd. Company
- Memorandum of Article and Memorandum of Association
- List of Directors with Residential Address
Does the “Shop and
Establishment” certificate have to be displayed prominently in the shop?
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.
Does the signboard
of the shop have to have Marathi script? YES.
Is it compulsory for
a shop owner in Mumbai to keep the shop closed for one day in a week?
Can wages of
permanent employees be deducted for the weekly off day? No.
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).
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
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 Establishment
4th Floor, Bhimabai Rane BMC school bldg
Raja Rammohan Roy Marg,
Opp Central Plaza Cinema,
Girgaon, Mumbai 400004
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