Shop & Establishment Registration Delhi- The backbone of commercial establishments

Purchasing has always been an integral aspect of a human being’s life. From clothes to grocery shopping, these businesses benefit and create a rush of excitement. However, understanding how we attain our happiness has its set of rules based on its functions.

The Delhi Shops and Establishments Act is followed in Delhi.

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 differs considerably.

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.

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 follows:

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 follows:

This act applies to any shop, commercial establishment, residential hotel, restaurant, eating-house, theatre, or other public amusement or entertainment places and 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 follows:

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 in which banking, insurance, stocks and shares, brokerage or product exchange are performed. The definition 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.

Registration Under the Delhi Shops and Establishment Act

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
  • Type of the establishment – shop/commercial establishment/residential hotel/restaurant/ theatre/ place of entertainment
  • Working employees in the establishment

Highlights of the Delhi Shops and Establishment Act

The act focuses on:

  • Work hours in Delhi. The statutes grants the following:
    • No adult is required to indulge in work for more than 9 hours per day or 24 hours a week.
    • If the work exceeds 9 hours or 48 hours in a week, then overtime wages must be paid.
    • Adults must not be subjected to 5 hours of continuous working. The period of working for an adult must be fixed.
    • Adults should be given at least half an hour for resting and eating.
  • Employment of children, young people, or women in Delhi. The statute states the following:
    • 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 the following:
    • Every employee must have at least 1 day holiday, 24 h 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.

Procedure For Registration Under Delhi Shops and Establishments Act

The first step is to register the commercial establishment using online forms that can be 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 should verify and post the officer’s satisfaction regarding the authenticity of the statement in the application; he shall register the business. The officer will grant the owner of the business a registration certificate and conclude the registration process.

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 depend solely on the number of employees appointed in the business or commercial establishment.

If there are:

  • Zero 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, benefits the working employees. Because of the better working conditions, the increased efficiency of the employees help customers as well. The statute is the backbone of every shop/establishment.

FAQs on Shop & Establishments Act Delhi

What records are maintained under the Shops and Establishment Act?

Employment records, fines, deductions, advances, salary and holidays are maintained under the Shops and Establishment Act Delhi.

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

The owner should register their shop 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?

The shop establishment registration came into effect from 1st of February, 1955.

Who verifies the registration application and grants the registration?

The Chief Inspector verifies the registration application and grants the registration.