Delhi Shops and Establishments Amendment Act 2026: Is It in Force, and Does a Small Shop Still Need to Register?
The Delhi Shops and Establishments (Amendment) Act, 2026 is law but not yet in force. It was published on 11 March 2026, and it starts only on a date the Delhi government notifies. As of 26 October 2026 we have not found that notification. Until then the 1954 Act applies in full, so every shop and office in Delhi, whatever its size, still has to register within 90 days of opening. Once the amendment starts, the Act will cover only establishments with 20 or more employees. This guide sets out what changes, what a small shop or office should do now, and which other registrations do not change at all.
The amendment at a glance
| Point | Before (1954 Act) | After the amendment starts |
|---|---|---|
| Who the Act covers | Every shop and establishment | Only those employing 20 or more employees |
| Normal working day | 9 hours | 10 hours, including rest interval and lunch break |
| Overtime limit | 54 hours a week, 150 hours a year | 60 hours a week, 144 hours a quarter |
| Work before a rest break | 5 hours | 6 hours |
| Spread-over | 10.5 hours (commercial), 12 hours (shops) | 12 hours for all |
| Women at night | Restricted | Allowed 9 pm to 7 am in summer and 8 pm to 8 am in winter, with written consent, CCTV, security and transport, at least two women on the shift and POSH compliance |
| Minimum age of a child (definition) | 12 years | 14 years |
The amendment is Delhi Act No. 3 of 2026. The Assembly passed it on 9 January 2026, it received the President’s assent on 23 February 2026 and it was published in the Delhi Gazette on 11 March 2026. Section 1(2) says it comes into force on the date the Government of NCT of Delhi appoints by notification. Some compliance websites list 11 March 2026 as the start date; that is the publication date, not the commencement date.
The amendment does not touch section 5 (registration), the opening and closing hour rules or the 24×7 exemption process. Those stay as they are.
If you have fewer than 20 employees
Today: register as before
- The 1954 Act still applies to you. Register online within 90 days of starting work. Report changes, such as a new address or more staff, within 30 days.
- It costs nothing and takes minutes. The Delhi Labour Department issues the certificate online in real time, with no inspection, through the labour portal at labourcis.nic.in.
- New companies can do it at incorporation. AGILE-PRO-S (INC-35) still offers Delhi Shops and Establishments registration for companies registered in Delhi. MCA recommends opting in, because the Labour Department portal will not give a first-time registration to a company that skipped it.
After the amendment starts
- The Delhi Act will no longer apply to you. An establishment with fewer than 20 employees falls outside it entirely; the amendment does not replace registration with an intimation or anything else.
- Keep your certificate on file. The Act does not say whether existing certificates of small establishments lapse. Banks, landlords and payment gateways still ask for proof of a business address, and the certificate is often the easiest one.
- Watch the headcount. The Act does not define whether contract or part-time workers count towards 20. If you are close to 20, assume they do until the government clarifies.
The labour code you may need instead: the OSH Code
The Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025. It requires establishments with 10 or more workers to register within 60 days. The central rules were notified on 8 May 2026 and use Form I on the Shram Suvidha portal. For shops and offices the appropriate government is the state, and Delhi’s own rules under the Code were still in draft as of October 2026.
In practice, a Delhi shop or office with 10 to 19 workers may come out of the Shops Act and into OSH Code registration once Delhi’s rules are final. We will update this guide when they are notified.
Penalties went up in April 2026
The original penalty in section 40(1) of the 1954 Act was ₹25 to ₹250. The Delhi Jan Vishwas (Amendment of Provisions) Act, 2026, in force from 16 April 2026, rewrote the penalties in several Delhi laws and adds an automatic 10% increase every three years. Published summaries put the new general penalty under the Shops Act at ₹10,000 to ₹25,000, with daily fines for record-keeping lapses. Registering on time is far cheaper than any of these.
What does not change, whatever your size
| Registration | When you need it |
|---|---|
| GST | Turnover above ₹40 lakh for goods or ₹20 lakh for services in Delhi, or earlier if you sell online or across states |
| FSSAI (food businesses) | Basic registration up to ₹1.5 crore turnover and a state licence up to ₹50 crore, under the limits in force from 1 April 2026 |
| MCD or NDMC health trade licence | Eating houses and other notified trades; MCD runs an online licence portal, and NDMC accepts FSSAI plus GST for restaurants |
| EPF | 20 or more employees |
| ESIC | 10 or more employees, or any number in hazardous work |
| Professional tax | Not levied in Delhi |
Our advice for a small Delhi business
- Not registered yet? Register now under the 1954 Act. It is free and instant, and the law still requires it until the amendment is notified.
- Already registered? Keep the certificate and update it if your address or staff change, until the amendment starts.
- Close to 10 or 20 employees? Plan for OSH Code registration at 10 and EPF at 20. These thresholds now matter more than the Shops Act.
- Running night shifts with women employees and 20 or more staff? Put the consent forms, transport, CCTV and POSH committee in place before you rely on the new section 14.
Frequently asked questions
Is the Delhi Shops and Establishments Amendment Act 2026 in force?
Not yet, as far as we can find on 26 October 2026. It was published on 11 March 2026 but starts only on a date the Delhi government notifies.
Does a shop with 5 employees in Delhi need Shops Act registration?
Yes, today it does, under the 1954 Act. Once the amendment starts, an establishment with fewer than 20 employees will be outside the Act.
Is there a fee for Delhi Shops and Establishments registration?
No. The Labour Department issues the certificate online, free of charge, without an inspection.
Can women work night shifts in Delhi shops now?
Only through case-by-case exemptions until the amendment starts. After that, establishments covered by the Act can employ women at night if they meet all six conditions in the new section 14.
TAXAJ handles Shops and Establishments registration, GST and payroll registrations for businesses across Delhi from our head office in Dwarka. See our Delhi team or our guide to RoC Delhi-I and Delhi-II if you are also setting up a company.
Last updated 26 October 2026. Sources: Delhi Shops and Establishments (Amendment) Act, 2026 (Delhi Act No. 3 of 2026), Delhi Gazette Extraordinary, Part IV, No. 80, 11 March 2026; Delhi Shops and Establishments Act, 1954, sections 5 and 40; Delhi Labour Department online registration notice; Delhi Jan Vishwas (Amendment of Provisions) Act, 2026; Occupational Safety, Health and Working Conditions Code, 2020 and the OSH (Central) Rules, 2026; MCA AGILE-PRO-S FAQ; FSSAI press release of 13 March 2026. General information only; check the current notification before you act on it.
