Where these registrations fit
In IFSCA's workflow for setting up on the SWIT portal, registration under the Gujarat shops and establishments law and for professional tax, as employer and for employees, comes after the certificate of registration and is done on the GIFT City portal. The two can run in parallel, and they come before employee SEZ identity cards and the start of operations. See the set-up sequence.
These are separate from the registrations under the labour codes, such as establishment registration under the OSH Code and provident fund and ESI. See employment and labour law.
Gujarat Shops and Establishments Act, 2019
- Coverage. The Act extends to the whole of Gujarat. Its main provisions apply to shops and establishments employing ten or more workers; section 7 applies to those employing fewer than ten (section 1(3)). The exclusions in section 3 cover Central and State Government establishments, local authorities, offices of the Reserve Bank of India, intermittent workers and family members of the employer.
- Ten or more workers: registration. Within sixty days of commencing business, the employer applies to the Inspector in the prescribed form with the fee, a self-declaration and self-certified documents (section 6(1)). The certificate remains in force until the ownership or nature of the business changes, when a fresh certificate is needed (section 6(3)).
- Fewer than ten: intimation. Within sixty days, the employer gives an online intimation of commencement and receives a receipt (section 7(1)). If the headcount reaches ten, the employer must register under section 6.
- Changes and closure. Changes in the registered particulars are notified to the Inspector (section 9). Closure is notified within thirty days (sections 7(2) and 10).
The Act also sets working conditions, including spread-over, weekly holidays, women's employment and welfare facilities. Check them against the unit's working patterns.
Professional tax
Professional tax is levied under the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976:
- Employer's duty. The employer deducts the tax payable by employees from their salary or wages and pays it to the State, and is liable for it whether or not it was deducted (section 4).
- Registration certificate. Every employer liable under section 4 obtains a certificate of registration (section 5).
- Enrolment certificate. A person liable to pay the tax on its own account, other than a salaried employee, obtains a certificate of enrolment. The Commercial Tax Department's guidance lists limited companies, banks and registered partnership firms among those liable, so a company usually needs both certificates.
Applications are made online through the Commercial Tax Department's portal, or through the GIFT City portal route in IFSCA's workflow. The department's guidance describes monthly returns and online payment. Rates depend on the Schedule to the Act and on salary slabs; check the current Schedule when setting up payroll.
Before you rely on this
- Confirm the current Gujarat rules and forms under both Acts, and any notification affecting units in GIFT SEZ.
- Register in the name of the entity that employs the staff. A branch of a foreign company is the employer for its own staff.
- Keep the certificates and update them when the headcount, address, ownership or nature of business changes.
- Close both registrations on exit. See exit.