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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Meera opens a small stationery shop in Pune and begins trading immediately. She assumes that, as the shop is tiny, no registration is needed anywhere. Which statement best reflects the general position under State shops and establishments legislation in India?

Shops and establishments laws are made by individual States, and commercial establishments generally must register with or intimate the designated authority as that State's law requires. The rules and thresholds vary by State, so a small shop cannot assume it is exempt.

  1. ARegistration or intimation to the designated authority is generally required for commercial establishments, with the exact rules set by the State lawCorrect
  2. BRegistration is required only if the shop employs more than 500 workers
  3. CRegistration is required only with the Registrar of Companies
  4. DShops and establishments laws are enacted only by Parliament and apply uniformly

Explanation

Shops and establishments laws are State enactments, so each State prescribes its own registration or intimation requirement and thresholds. Option B invents a threshold, C confuses the regulator, and D is wrong because the law is State-made.

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