Establishment Compliance

Establishment compliance refers to all the statutory and regulatory requirements that shops, offices, factories, and commercial establishments must follow under Indian labor laws to legally operate and avoid penalties.

Key Establishment Compliances

1. Shops & Establishment Act (State-wise)

  • Registration of establishment within prescribed time of starting the business

  • Display of registration certificate at premises

  • Maintain registers (attendance, wages, leave, etc.)

  • Compliance with working hours, leave rules, holidays

2. Labour Laws Compliance

  • PF (Provident Fund): Registration & monthly deposit if 20+ employees

  • ESIC (Employees State Insurance): Registration & monthly deposit if 10+ employees and salary ≤ ₹21,000

  • Gratuity Act: Applicable if 10+ employees (payment after 5 years of service)

  • Bonus Act: Applicable if 20+ employees (minimum bonus 8.33%)

  • Minimum Wages Act: Pay as per state’s minimum wages notification

  • Payment of Wages Act: Ensure timely salary disbursement

3. Professional Tax (PT)

  • Deduct and deposit PT as per state laws

  • File monthly/quarterly returns

4. Contract Labour (Regulation & Abolition) Act

  • Contractor and principal employer registration if hiring contract labour

  • Maintain registers of contract employees

5. Factories Act (if manufacturing unit)

  • Factory license from local authorities

  • Compliance with health, safety, and welfare provisions

  • Maintain registers (accidents, working hours, overtime, etc.)

6. Other Important Establishment Compliances

  • Trade License (from local municipality/corporation)

  • GST Registration & Returns (if applicable)

  • Fire Safety NOC & Pollution NOC (if required)

  • Shops Act Renewals (periodic renewal in some states)

📅 Key Compliance Deadlines

  • PF & ESIC Payments: By 15th of next month

  • PT Returns: Monthly/Quarterly (as per state)

  • TDS Payments: 7th of next month

  • Labour Welfare Fund: Half-yearly/Yearly (state-specific)

  • Annual Returns: Under Shops & Establishment / Factories Act