If you are an owner of a shop and you do not have a shop registration then you should make it an important priority for yourself to get shop act license In the respective state that you live in India.
It will of your interest to know that if you get a shop registration then you can take advantage of many benefits that are given to the registered shops in India. In this article, we will primarily focus on listing the benefits or importance of shop registration.
In India, a Shop can get registration under the following ways.
A shop can be registered as a Business entity in India.
A shop can be registered as Startup In India.
A shop can register as MSME Enterprise.
A shop can be registered under shop and establishment act of the respective state In India.
Details about the method of Shop registration
If you choose to register as a Business entity, then you can register your firm as a Private Limited Company, LLP, Partnership, OPC etc. and Visit the Ministry Of Corporate Affairs website and File the application using an online portal for registration.
If you choose to register your shop as a StartUp Then you need to first get Registration as Business Entity and then visit the startup India website and fill a simple form and complete all formality and your shop will be registered as a Startup.
IF You choose to register your shop as an MSME Enterprise then you need to visit the Udyog Aadhar website and File an application for Registration and upload all documents to complete the Registration process.
IF You choose to register your shop under a Shop and Establishment act then you need to visit the website or the State government office to complete the Registration Formality in A Method prescribed by the State Government.
Documents You will need While Carrying out the Shop registration under method given above:
Voter ID Card
License and permits that are required by particular shops
FSSAI License In Case of Food Shop.
Importance of Shop Registration
Benefits that you get, when you register your shop as a Business Entity:
When a person opens a Shop, A person becomes legally responsible for all aspects of your business, including any debts and losses.Sometimes This can result in the loss of all your personal assets such as your car and home.
If you register your shop as a company, then it gets a separate legal entity and becomes an easy way to protect your personal assets from your business actions.
If you chose partnership then you can be sure of better management and equal sharing of the profit and losses and also there will be flexibility in operations of the shop.If you choose to register your shop as a Limited Liability Partnership, Then It will protect the Partner’s personal assets from the liabilities of the business.
Benefits you will get If you Register your Shop as a Startup:
If you choose to register your shop as a startup you can gain benefits such as Simple and less costly Business registration, Ease in raising funds for business, Tax Holiday, Easy access to Research and development facilities and Startups will be given First priority when they apply for the Government tenders In India.
Benefits you will get If you get a Registration of Shop under MSME:
If you register your shop Under MSME or SSI, you can get benefits such as you can get easy Loans from Banks, Enjoy Tax Benefits and Exemptions, Marketing Assistance, Technology Development and Provision for Training Facilities etc.
Benefits you will get If you Register Your shop Under Shop and Establishment Act:
If You Register Your Shop Under Shop and Establishment Act, then on the basis of Shop Act License You can easily Open A current Account In Bank, There will be less Legal Compliance that you Need to follow and Shop and Establishment License is compulsory to be displayed at all Shops.
I Hope you like this article about Importance of Shop Registration. still, if you are confused you can mentioned queries in the comments.
(Disclaimer: This is a guest post submitted on Techstory by the mentioned authors. All the contents and images in the article have been provided to Techstory by the authors of the article. Techstory is not responsible or liable for any content in this article.)
About the Author
Ankush Sachdeva is COO & Co Founder at MyOnlineCA which deals in Online Business and Tax Registrations across India.