All businesses in India are required to register under The Shops and Establishment Act with their respective authorities depending on the place of business.

Shops and Establishment Act is enacted to regulate the conditions of work and employment such as working hours, holidays, leave, opening and closing hours, rest interval of employees, and payment of wages in shops, hotels, restaurants, theatres and other commercial establishments. The Shops and Establishment Act is a State Act & the procedure may vary from state to state. 

Each state in India has framed its own rules for the act, which may differ from state to state. In some states it’s also known as Shops and Commercial Establishment Act.

• Shops
• Residential Hotel
• Eating-house
  Restaurant
• Theatre
• Places of public amusement or entertainment
  Other commercial establishments as required by the act

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. ESI applicability criteria as per the ESI act is that any employee whose gross salary is upto Rs. 21000 can avail this by the help of the employer. Also, it is mandatory for the employees, labour workers etc having gross salary upto Rs.21000 under such type of industrial unit where 50% to 90% injury or health cause is during company premises. ESI contribution by the employee is 1.75% and 4.75% by the employer. Any Company having more than 10 employees (in some states it is 20 employees).

• Shops
• Movie theatres
• Newspaper establishments (not covered under factory’s act)
• Private educational institutions
• Restaurants engaged only in sales
• Road motor Transport establishments

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

EPF registration is applicable for all establishment which employs 20 or more persons. EPF registration can also be obtained voluntarily by establishments having less than 20 employees.

The EPF contribution paid by the employer is 6% of (basic salary + dearness allowance + retaining allowance). An equal contribution is payable by the employee. In case of establishments which engage less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and the employer is restricted to 10%. For most employees working in the private sector, it’s the basic salary on which the contribution is calculated. It is obligatory that employees’ drawing less than Rs 15,000 per month, to become members of the EPF. employee whose salary is more than 15000 required consent of employer to register under EPF.

EPF Registration is Mandatory by employers as per Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 for the welfare of employees.

Factory having the strength of 20 or more persons engaged in any industry

Any other establishment having the strength of 20 or more persons or any other establishment which is specified by the Central Government in this behalf.