The Shop and Establishment Act in India has many benefits, including:
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Legal complianceThe license ensures compliance with state laws and regulations, and protects businesses from legal action and penalties for operating without a license.
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Employee benefitsThe Act guarantees certain rights and benefits to employees, fostering a healthier work culture. For example, holders of a Shop Establishment Act Certificate must follow government standards regarding pay.
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Business proofThe license can be used as a valid legal entity proof for opening an account in any bank, and to avail government benefits. It can also help in obtaining many other licenses.
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Child laborThe Act makes child labor unlawful and a penal offense.
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Other benefits
The license also provides the following benefits:
- Ease of opening a current account
- Hassle-free inspections
- Ensure peace of mind for employer & employee
- Enforce better wages and holiday management
- Avoid unethical business practice
- Promote Growth
- Solidifies entity’s position in the market
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