Shopping is a whole different feeling. Purchasing it from your favorite provider is another level of happiness. And being the vendor who sells these items gives you a new face in the market.
But did you ever think of setting up your own business but have no idea where to start? As the Government of India promotes the Make in India initiative to give wings to small business ideas, many people don't know how to open it.
The Ministry of Micro, Small and Medium Enterprises (MSME) is the branch of the Indian Government that acts as an apex executive body. It is responsible for the process formulation, administration of rules, regulations and laws relating to micro, small and medium enterprises in India. There is still a large demand for offline shopping where buyers visit the showroom or shop to buy the product.
Moreover, the freedom to set up your business anywhere in India has given the distributors a huge benefit. They have a chance to establish and set up multiple branches of business from any state - be it Gujarat, Southern India or even the colorful Rajasthan. If you want to establish a branch or start a new business in Rajasthan, you need to follow certain government regulations. These include filling and submitting form 5 which is a mandate for every business owner in the state.
Understand about the Registration Certificate
When you opt to open a business in a particular state, you need to abide by the rules of the state government. Under the Rajasthan Shops and Commercial Establishment Act,1958, every shop owner must fill Form 5 which is now available online. It comes under Rajasthan’s Labour Department Management System.
This form 5 acts as your shop license. It is valid proof of your registration on the state government portal. The government of Rajasthan has been at the forefront of forming several legislations.
Why was the Shops and Establishment Act established?
Filing form 5 online helps the Indian Government maintain a correct database of the registered shops. This technological approach assists in -
- Speedy registration and renewals
- Ease of doing business
- Freedom of operating the business
- Ensures non-discrimination when it comes to women employees
Rajasthan Shop Act
The Rajasthan Shop act is proving to be a good initiative by the state government. It applies to nearly 35 locations in the state. Under the Rajasthan Shops & Commercial Establishment Rule, 1959, it is possible to register for a period of 1,3 or 5 years. For simplicity of the documentation process, the form is now available online. You need the help of a good internet connection and computer.
If you have already registered your business on the government portal, you should mandatorily renew it through the Labour Department Management System (LDMS) portal. Under this, all shops and businesses have to register themselves for a specific charge. The Form 5 payment is based on
- How many years of registration does the owner seek
- Shop size
According to available data, maximum registrations for form 5 are found in Jaipur.
Shop Registration Certificate Documents
While filing Form 5 to register your business, the government portal will demand a few documents for approval and verification process. These documents are related to the employees who work in your shop. You need to provide accurate details of the labourers employed at your shop. The list of documents required include -
- Photo of the shop and owner
- Passport size photo of the employer
- Accurate list of employees in Excel
- Details of employees working in the shop/ company
- Employee Wages in Excel
- Employee Weekly Holidays in Excel
- Address proof of your establishment: If you are the sole owner of the premise or have rented the place, you need to provide proper legal agreement proof
- Affidavit (Self-declaration Form)
- Any 1 valid Photo ID (Passport/ Aadhar/ Driving License/ PAN Card)
Form 5 Application Procedure
Even if you are a newbie in business or an old employer who wants to file a new registration using form 5 in Rajasthan, many do not know the details of Rajasthan shops and establishment act applicability. First, know about the steps about application procedure for a new establishment -
- On opening the LDMS portal, select “Establishment Registration”
- Fill out the form appropriately and attach the documents listed above
- Submit it and note down your LDMS application number. This number is important as you need it to track your Form 5 status or even to retrieve information
- If you have entered the correct details, you will receive its acknowledgement message on the registered email address and phone number
- Once you have finished the payment gateway page, you can download the registration certificate
When you are filing form 5 for renewal, there can be 2 possibilities regarding your establishment’s entry
- Is already present in the LDMS system
- Not present in the LDMS system
In the first case, if it is in the government's records, you can directly search for your establishment’s renewal document by entering the Registration Number. However, if you are not able to get this easily, you need to follow a slightly longer procedure. To get your renewal form, enter the details of the Establishment Registration Date and click on the Submit button. You would be guided to a page where you need to again fill in the details regarding your shop that includes -
- Renewal period
- Number of Employees
- The current value of the workers
- Correct year in License Expiry date
- Registration certificate of your establishment
- Duly filled and scanned copy of Form 5
The worst-case scenario is your registration details have been wiped out of the government’s data records. At such a time, you need to again login on to the portal, enter all details to get your establishment recorded in the LDMS system. You need to save this newly generated registration number for future references. This Form 5 number is used to track the status of your application and for renewal of the certificate after the shop’s tenure ends.
Possibilities in the tenure of Form 5
When an establishment employs labourers for a contractual period, irrespective of the sector, it has to register its details to the concerned government. There are many workers in Rajasthan who work on a part-time or full-time basis based on the needs of the employer.
There are multiple handicrafts, manual work,agro-based industries, textile mills, manufacture of appealing materials and much more availability of job-oriented roles in different sectors which ensures employment for the interested individuals. The employers recruit them on their skills and even to meet deadlines. Irrespective of the reason, he is entitled to fill out Form 5 to give concrete details of the workers in his establishment.
This certificate is validated by the concerned government official. The inspector registers the establishment after thorough verification and satisfaction of the given statements. The validity of the certificate remains until 31st December of the tenure for which it has been granted to the establishment. If the employer fails to renew it within the stipulated time, he might have to pay an amount 10X times the prescribed fee.
Transfer of the certificate
Moreover, there is a provision to transfer the certificate in the name of another individual before it expires. This application is made to the concerned inspector along with a nominal fee of Rs. 50. This transfer is successful when the inspector approves and signs the certificate.
Loss of the certificate
If by any chance, you have misplaced the certificate, then you are liable to pay a penalty of Rs. 20 to get the duplicate copy.
Death or mishap of the Employer
In extreme situations, if there is a major mishap - death or a certain disability post-accident or illness to the certificate owner, then the next individual who continues the business is not accountable for any type of penalty. There are 90 days, in which you can amend the certificate. This is possible only when your certificate is valid and is approved only for the unexpired portion of the tenure.
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- To have your small, medium or large-scale business in the government's database, the owner must keep a copy of the registration certificate
- The Rajasthan government was at the forefront to follow and implement central regulations. It established the Rajasthan Shops and Commercial Establishment Act in 1958
- Under this Act, every employer has to submit all details regarding its employees for the agreed tenure
- Before the certificate term ends in December or the concerned owner’s signed tenure, he should file form 5 for renewal of the registration certificate on the LDMS portal
- The owner must give accurate details of the employees to obtain the license from the concerned government official (inspector)
- He must take appropriate actions for various scenarios like loss of certificate, duplication and even transfer of certificate to avoid payment of a penalty which is 10X the original fee for the establishment’s Registration certificate