Madhya Pradesh - Form B - Register of Establishment

The Shops and Commercial Establishments Act is a crucial ordinance enforced by every Indian state wherein most businesses and companies across India are subject to the law.

The law is intended to regulate wages, maintain compliance records like wage registers and returns, monitor working hours, ensure the health and safety of employees, terms of employment, and other working conditions for employees in stores and businesses.

The Department of Labor oversees the Shop and Establishment Act, which applies to places where businesses or professions take place. It also monitors associations, charities, for-profit institutions, and places where banks, stocks, or shares are traded.

Several other aspects are covered in the law. Here we will focus on the Madhya Pradesh Shops & Establishments Act 1958

For a new owner planning to open a restaurant in Bhopal, the study of this article is highly recommended.

When you think of initiating a new venture, you must first consider how to get it registered. According to the Madhya Pradesh Shops & Establishments Act 1958, you must fill out Form B Registration form to apply for a new registration or renew or modify an existing firm.

The Act has various other compliances like monitoring working hours, maintaining wage registers, keeping a tab on leaves and holidays, etc. But it starts with Form B- New Registration of a shop, store, or establishment.

Form B - How to Register, Renew, or Modify

If you are a shop owner or entrepreneur and want to know the procedure for applying for registration, renewal, or modification under the M.P. Shops and the Establishment Act, you have come to the right section.

Form B Registration takes place via the portal: https://labour.mponline.gov.in/Portal/Services/Shram/default.aspx

Documents Required for Form B Registration

Select Stores and Branches Act once you are on the page and submit the requested documents:

Two passport-size photos of the applicant
Challan's original registration rights transfer
Photo ID of the owner - one of the following
AADHAR card
Voter ID
Passport
Pan Card
Driving license
Proof of owner's address

You can attach one of the following documents:

Ration card
Phone bill
Electricity bill
Title deed
Gas Connection Documents
Rental agreement
Address Proof of the location of the shop

You can submit one of the following documents:

Memorandum of the article if it is a company
Telephone bill
Electricity bill
Title deed
Rental agreement
Certificate of partnership if it is a general partnership

Form B Registration Requires You to Note Important Costs

You need to pay the Form B registration fee to the following account:

According to the MP Shops and Establishment Act, you must submit the following along with the prescribed fees:

The original of the challan and the photocopies of the other documents must be presented
The original registration certificate must be presented for the renewal or modification of an existing registration

The following tables provide information on the different commission amounts required for the different processes:

Fee For New Registration/Renewal

Sl. No.	Condition	Registration Renewal Fees	Compounding Fees in case application is time-barred (applied after 28th Feb)
1	In case of no workers	100	100
2	For 1 - 3 workers	150	150
3	For 3 - 10 workers	200	200
4	For more than 10 workers	250	500

Fee For Amendment in Old Registration

Sl. No.	Condition	Correction/Alteration Fees	Compounding Fees if the application is time-barred (should be applied within 7 days of the modification)
1	In case of no workers	10	100
2	For 1 - 3 workers	25	150
3	For 3 - 10 workers	40	200
4	For more than 10 workers	50	500

Fee For Renewal with an amendment in old Registration

Sl. No.	Condition	Correction/Alteration Fees	Renewal Fees + (Renewal Late Fee)	Compounding Fees if an application for renewal is time-barred (applied after 28th Feb) or applied after the 7th day of change
1	In case of no workers	10	100	100
2	For 1 - 3 workers	25	150	150
3	For 3 - 10 workers	40	200	200
4	For more than 10 workers	50	250	500

Late Fee and Compounding Fee for Renewal and Amendment in Old Registration Certificate

Sl. No.	Condition	Fees
1	Renewal Fees paid before 1st December of the financial year	No Late Fees
2	Paid on or after 1st December, but on or before 28th February	10
3	Paid after 28th February	10 + Compounding

About Madhya Pradesh Shops and Establishments Act

Form B is a vital compliance document that comes under the Madhya Pradesh Shops and Establishments Act to register, renew or amend the certificate of a firm. The rules apply to all stores and commercial companies from the entire state of Madhya Pradesh.

The law is issued to protect employees and contains regulations for the payment of wages, maintaining wage register, working hours, rest intervals, overtime, opening hours and closing, leaves, holidays, Maternity holidays and services, working conditions, rules for the employment of children, files, records, recordings, etc.

Definitions

The commercial establishment refers to an integrated installation of businesses for secondary or auxiliary activities, trade, or work.

A company is registered using Form B as part of the law on the registration of companies of Madhya Pradesh, 1959 (1,1960) 2 in the context of random or secondary activities in these stores, shops, or work.

A shop refers to all the rooms in which the goods are sold, either in retail or wholesale, or the two services provided to customers. Shops can be in the form of an office, a store, a Godown, a warehouse, or a work that is on the same premises or other means in the context of such trade or such a company.

The following shops/store or establishments fall in the section that requires form B for registration:

An institution that operates the company with advertising, the commission agency, the transfer or trading authority, or is a department of the office of a factory or an industrial or commercial company
An insurance company, a joint-stock market company, a bank, an office, and the broker's exchange

An establishment Form B registration may include a company, a residential building, a restaurant, a cafe, a theatre, or another place of public fun or entertainment. The Act does not include a factory.

Another option is when the government declares an institution as a shop or an establishment for this law by notification.

Every shop/store or establishment must file Form B- Registration within 30 days from the date on which this law applies to an institution. The employer will go to the inspector of the area concerning a declaration, in the prescribed form, together with necessary documents.

Now Form B can also be filled online, as discussed above, and the relevant documents can be submitted online

Sample of Form B

Inclusions of Form B

Part I- Shops

Part II-Commercial Establishments

Part III-Residential hotels

Part IV- Restaurants and eating-houses

Part V-Theatres and another place of public amusement or entertainment

This Form B shall be maintained separately for each employee

Registration No. of establishment/shop or store
Name and address of the employer
Name and address of the manager or any person who the owner of the store authorizes
Nature of business
Number of employees
Renewal Year

Form B contains

the name of the employer who performs management functions
the postal address and start date of the company based on the position
the name, if present, of the location
the category of the Establishment that is, that it is a shop, commercial Establishment, residential hotel, restaurant, theatre, or another public entertainment place
Such other details can be prescribed.

After receiving the declaration and reimbursements, the inspector, respecting the accuracy of the declaration, records the institution in the institution register in a way that can be prescribed and will issue the registration certificate as requested under Form B to the prescribed employer.

Form B registration certificate is displayed prominently on the premises.

In the case of any doubt or disagreement between an employer and the inspector regarding the category to which an institution should belong, the inspector refers to the case of the commissioner of the work, which, after an investigation like him, determines the decision.

Exemptions – Form B Registration Does Not Apply in The Following Cases

Stores or shops where people occupy managerial positions and are declared as such under clause (a) of subsection (2) of section 6 or used in a reserved capacity are not more than 3 or 10% of the total number of employees, which is less;

People involved in activities like cleaning or transmission of employees
People who work exclusively to collect, provide, or transport goods;
Establishments that report to the Union or State Government or local authorities and the Reserve Bank of India, the State Bank of India, and the Life Insurance Corporation;
Establishments for treatment or assistance for the sick, weak, or mentally unsuitable;
Bazar, fairs, or exhibitions for the sale of works for no-profit or charity institutions
Stalls and refreshing rooms in the railway stations or train wagons;
Clubs that are not residential

Other Compliances

Besides Form B, the MP Shops and Establishments Act requires the employer and employee to follow the below-mentioned compliances too:

Form A - Statement under section 6(2)

Form C – After the registration is requested using Form B, the registration certificate of Establishment comes under this form

Form D - If there is any reason or need to change or make alterations to the existing scenario or reforms, the same should be reported to the inspector using this form

Form E – If there is any reason or need to close down a business or firm, the same should be reported to the inspector using this form

Form H – The Form of Certificate of the Establishment is notified under this form

Form I – Employers maintain this Register of Leaves based on leaves taken and balance leaves of each employee

Form J – This is about the Leave Book that each employee should maintain

Form K – If there is any leave applied by the employee that the employer has refused, it should be notified using this form along with the reason for its refusal

Form L – For any Lime Washing done on the premises, the same should be reported by the employer using this form

Form N – Employers need to fill out this form, which is more like a wage register, and notes the details of Employees, their salaries, attendance, overtime, penalties, or any other kind of deductions

Form O – Any holiday given to the employees should be notified using this form

Form P – All kinds of tenures and periods of work should be notified under this form

Form Q – This form notifies the inspector and employees of any closing day in the shop/enterprise and if there is any change in the existing closing day of the firm

Form R – The announcement and fixing of a weekly holiday is a must for all shops and establishments. If there is any change in the weekly holiday because of any public festival, the same should be notified using this.

Conclusion

Form B is a vital record under the Madhya Pradesh Shops and Establishment Act which initiates the registration of a new firm. Not only that, Form B helps owners renew an existing registration certificate or to make imperative modifications to the existing certificate. If the owner needs a change of address or authorized representative, he must fill out Form B to make the necessary changes.

How Deskera Can Assist You?

Deskera has the tools to help you manage your payroll, leaves, employee onboarding process, and managing employee expenses, all in a single system. Easily generate pay slips for your employees and simplify your payroll management with Deskera. It also digitizes and automates HR processes including hiring, expenses, payroll, leave, attendance, and more.

Try Deskera for your Business!

Click here for free trial

Key Takeaways

The Madhya Pradesh Shops Act is a document consisting of 11 chapters and 2 programs and is a retail and establishment law set by the state
In India, different states may have their shops and establishment acts, varying slightly from state to state.
All operating stores and businesses are legally protected by applicable business and establishment law.
Shops and Establishment- both have different definitions and meanings and can also step into the world of business and operation once it is registered using Form B.
The Act contains substantial definitions, the process of registration using form B under the Act, maintaining important compliance records like the wage register, paid leaves, and leave records, and descriptions of businesses and establishments covered by the Act.
It is also about the employment of young people, children, and women.
The document states that employee health and safety, enforcement, monitoring, violations, and penalties are mandated and explained.
Form B Registration takes place via the portal: https://labour.mponline.gov.in/Portal/Services/Shram/default.aspx
The main documents to register using Form B should be kept handy before starting with the registration procedure online, and the prescribed fee should be paid accordingly