Doing Business in Maharashtra: Shops and Establishments Act Explained

The Maharashtra Shops and Establishments Act, 2017 establishes the principal legal framework governing employment conditions in shops, offices, commercial and professional establishments, and other covered workplaces across the state of Maharashtra. The Act regulates working hours, rest intervals, weekly holidays, leave, overtime, employment of women, workplace safety and welfare, employee records, and other employment-related requirements.

Maharashtra has amended the Act over time to update compliance requirements and provide greater operational flexibility for businesses. The 2025 amendments, for example, revised employee thresholds for key compliance requirements and increased the permissible limits for daily working hours, daily spread-over, and quarterly overtime, while retaining the 48-hour weekly working limit.

Which businesses are covered under the Maharashtra Shops and Establishments Act?

Under the Maharashtra S&E Act, the definition of ‘establishment’ is broad. It covers businesses engaged in trade, business, manufacture, professional activities, or related activities, including the following:

1. Shops and offices
2. Commercial establishments
3. Banks and insurance businesses
4. Stock and share businesses, broking and commodity exchanges
5. Restaurants and eating houses
6. Residential hotels
7. Theatres and places of public amusement or entertainment
8. Hospitals, clinics, dispensaries, and other medical establishments
9. Architects, engineers, accountants, tax consultants, and professional consultants
10. Registered societies
11. Charitable and other trusts carrying on business, trade, or professional activities
12. Other establishments notified by the state government

Establishments governed by the applicable factories legislation are excluded from the definition for purposes of this Act.

2025 Maharashtra Shops and Establishments amendments

Maharashtra’s S&E law was significantly amended in 2025 to reduce certain compliance requirements for smaller establishments and provide greater flexibility in workforce scheduling. The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Act 2025 has been in effect since 1 October 2025.

Key Changes under the Maharashtra S&E (Amendment) Ordinance 2025
Compliance area	Earlier position	Current position
Registration threshold	10 or more workers	20 or more workers
Small-establishment threshold	Below 10 workers	Below 20 workers
Daily working hours	9 hours	10 hours
Continuous work before rest	5 hours	6 hours
Daily spread-over	10.5 hours	12 hours
Quarterly overtime ceiling	125 hours	144 hours
Weekly working limit	48 hours	48 hours

Source: Maharashtra Ordinance No. VIII OF 2025

The 2025 amendment retains the 48-hour weekly working limit while increasing flexibility in daily scheduling and overtime. Establishments employing fewer than 20 workers are subject to an intimation requirement

Commercial establishment registration and intimation in Maharashtra

Entities employing 20 or more workers must comply with the applicable registration requirements. However, establishments employing fewer than 20 workers are required to submit an intimation of commencement of business instead.

Businesses should keep registration or intimation details updated when there are relevant changes to the establishment, such as its name, address, employer, nature of business, or workforce.

An acknowledgement of commencement of business does not replace other licences, registrations, or permissions required under applicable laws.

Leave and weekly holidays

Workers are entitled to statutory weekly holidays and prescribed leave benefits, including:

• Eight days of casual leave with wages per calendar year
• Earned leave for eligible workers, calculated based on days worked
• Accumulation of earned leave subject to the prescribed limit
• Eight paid festival holidays each calendar year, comprising four specified holidays and four holidays determined in accordance with the applicable requirements

Employment of women

The Maharashtra S&E Act and applicable Rules prescribe safeguards for the employment of women, including requirements relating to safety, sanitation, security, prevention of sexual harassment, and night work.

Women may work during the applicable night period subject to the prescribed conditions, including consent and safety-related requirements.

Employee records and statutory registers

Maharashtra-based employers must maintain prescribed employment, attendance, wage, overtime, and leave records. These include the Muster-Roll-cum-Wages Register and the Leave Book, subject to applicable exceptions and prescribed alternatives.

Employee information should remain consistent across appointment records, identity documentation, payroll, attendance systems, and statutory registers.

Health, safety, and welfare of workers

The framework requires covered establishments to maintain appropriate workplace health, safety, and welfare arrangements, including first-aid and sanitation facilities.

Establishments ordinarily employing 100 or more workers must constitute a Health, Safety and Welfare Committee with equal representation from employers and workers.

Opening and closing hours

The statutory provisions governing the opening and closing of establishments are distinct from the limits applicable to employee working hours. Employers must therefore comply separately with the provisions governing the permitted operating hours of an establishment and those governing employee working hours, rest intervals, and weekly holidays.

Compliance considerations for businesses operating in Maharashtra

Companies operating in Maharashtra should incorporate the Shops and Establishments requirements into their HR and compliance processes. Key areas for periodic review include:

• Registration or business intimation
• Employee headcount and establishment records
• Working hours and shift schedules
• Overtime and payroll records
• Leave and weekly holiday administration
• Women’s employment and night-shift safeguards
• Statutory registers and employee documentation
• Workplace health, safety, and welfare measures

For businesses establishing or expanding operations in Maharashtra, these requirements should be integrated into HR, payroll, workforce planning, and statutory compliance processes from the outset.

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2024 Maharashtra Shops and Establishment Rules amendment

On 22 July 2024, the state government notified the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Rules 2024. The amendment introduces insurance-related requirements into the registration, renewal, commencement-intimation, and annual-return processes.

Form	Description
Form A	New registration of an establishment
Form B	Registration certificate
Form C	Register of establishment
Form D	Renewal of registration certificate
From E	Renewed certificate of registration
Form F	Intimation of commencement of business
Form G	Intimation receipt
Form H	Register of establishments that have given intimation (for establishment engaging less than 10 workers)
Form I	Notice of change in registration certificate
Form J	Intimation of closing of business (for establishment engaging more than 10 workers)
Form K	Intimation of closing of business (for establishment engaging less than 10 workers)
Form L	Consent of women workers to work in the night shift
Form M	Notice of hours of work, rest interval, weekly holiday
Form N	Notice of shift schedule and weekly holiday of workers engaged in shift
Form O	Leave book
Form P	Notice of maximum leave accumulated
Form Q	Muster-roll cum wage register
Form R	Annual return

Source: Brihanmumbai Municipal Corporation; Government of Maharashtra.

The 2024 amendment adds an insurance certificate of the establishment to Forms A, D and F. It also amends Form R to require the insurance policy number and date of validity of the establishment’s insurance policy.

It must be noted that the amendment does not prescribe the type of insurance, minimum coverage, sum insured, or insurer.

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Are the Shops and Establishments rules different in Maharashtra’s Tier 1 cities?

No separate Shops and Establishments law applies to Mumbai, Pune, or other Tier 1 cities. The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 and the rules made under it provide the state-level framework for covered establishments.

However, establishments must also comply with applicable local requirements, including municipal, zoning, fire safety, licensing, and other local regulations. The Shops and Establishments registration itself does not replace these separate approvals.

How much time does it take to register a new business under the Maharashtra S&E Act?

An establishment required to register must submit its application online within 60 days of commencing business. Following submission, a state government appointed officer (facilitator) is required to issue the registration certificate in Form B within seven working days, provided the application is complete and supported by the required documents. If the application is incomplete or the required documents are missing, it may be rejected with reasons within the same seven-working-day period.

The 2025 amendment increased the threshold for mandatory registration from 10 or more workers to 20 or more workers. Establishments employing fewer than 20 workers are subject to an intimation requirement instead of full registration.

What is the validity period of registration and renewal?

A registration certificate may be issued for the period requested by the applicant, subject to a maximum validity of 10 years. The registration certificate should be renewed online at least 30 days before its expiry.

If a renewal application is submitted after expiry but within 30 days of expiry, the Act provides for an additional late fee equal to 50 per cent of the applicable renewal fee.

What employee records must establishments maintain?

Employers must maintain the prescribed registers, records and notices required under the Maharashtra Shops and Establishments framework. These records may generally be maintained electronically or manually, but a signed hard copy must be produced if demanded during an inspection. Records must also be kept at the establishment’s premises.

The compliance framework covers employment and payroll-related information, including employee identification and employment records, attendance and working hours, leave, wages, overtime and other prescribed particulars.

The establishment must also comply with the name-board requirement under the Act. The name board is required to display the establishment’s name in Marathi in Devanagari script, along with the other prescribed requirements.

Is there an annual audit report requirement for commercial establishments?

Maharashtra’s S&E framework provides for an annual return, rather than a general annual performance audit of commercial establishments.

Employers are required to maintain the prescribed employment records and submit the applicable annual return. Separate annual audit, financial reporting, tax, corporate, labour, or industry-specific requirements may apply to an establishment under other laws, depending on its legal structure, size and business activities.

Does an establishment need to inform the authorities about a change in management? If yes, how?

Yes. An employer must notify the facilitator when there is a change in any of the particulars provided in the establishment’s registration application.

A commercial entity must submit the notification online in the prescribed form, along with the applicable fee, self-declaration, and self-certified supporting documents. Once the change is accepted, the facilitator updates the register and issues a fresh registration certificate online.

This requirement is particularly relevant where there is a change in the employer, manager, ownership or other particulars recorded in the registration application.