Karnataka Shops and Establishment Act and who needs to Register

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Karnataka Shops and Establishment Act and who needs to Register
The Karnataka Shops and Establishment Act apply to the whole state of Karnataka and has been enacted to regulate the conditions of work and employment in shops and commercial establishments/undertakings in Karnataka.

As per the provisions of Karnataka Shops and Establishment Act,
• The employment of children below 14 years of age at any establishment is prohibited.
• Young persons (anyone who has completed the age of fourteen) and woman shall not be employed to work in any establishment during the night.
• Establishment requiring young persons and woman to work at night must apply for special permission from the concerned Labour officer after fulfilling certain welfare measures.
• An employee shall be allowed to work for nine hours in a day and forty-eight hours in 1 week. And overtime wages should be provided to an employee if the employee works more than regular hours. Further, an interval shall be given after every 5 hours of work.
• All establishments in Karnataka shall remain closed for one day of the week. If an establishment wants to work on holiday, it should take permission from Labour Officer.
• Employees in Karnataka should be allowed to avail a leave with wages at the rate of one day for every 20 days of work performed and in case of young persons, the leave is to be availed for every fifteen days of work performed.

Who needs to Register
Besides those exempted u/s 3(1) of the act by the Government and a factory covered under the Factories Act, 1948, all other shops and commercial establishments in the Karnataka must register and comply with the Karnataka Shops and Commercial Establishment Act even if no person is employed by the establishment. Also, if a company has several branches, the Business owner should register each branch separately.

Therefore, according to this act, all the new shops or commercial establishments in Karnataka must apply for online registration within 30 days of commencement of business. The inspector within 15 days, verifies the application and grant registration. All registrations under this Act are valid for a period of 5 years and can be renewed after the expiry of the said period.

Register Online

Further, the can be filed electronically on e-Karmika that provides the online facility for registration under the Act or renewal or amendment of Licenses etc. The Shops and Establishment Act Registration application in Form-A along with supporting scanned documents must be submitted in the prescribed format to the Labour Inspector of the area concerned, with necessary payment towards registration fee.

The information that needs a user should provide for filling up of Form A as a part of the Shop and Establishment Act Registration application include the name of the company, postal address of the establishment, details of the director, nature of the business, weekly holidays and such other particulars as may be prescribed.

Along with form A, you also need to register documents such as Incorporation Certificate of Company, MOA and AOA, Rental Agreement/ Lease Agreement of Company, Company PAN Card etc. as per the act For any changes such as an increase in working hours, change in address etc. use the same form- Form A . You also need to maintain other important registers as per the act including:

(a) Register of leave with wages Form-F
(b) Employee attendance in form -T.
(c) Appointment order in Form -Q
(d) Change in date of weekly holidays in Form-P
(e) Registration certificate to be exhibited in Form-C

Documents to be uploaded for Registration:-
• Proprietor / Managing Partner/ Directors Photo
• Address proof for the establishment /shop (Rental /lease agreement etc.)
• Identity Proof of the owner/ authorized signatory (PAN card/ Driving license/Voter Card etc.)
• Statutory Documents (Partnership deed/BBMP trade License/Incorporation Certificate /Memorandum of Article)
• Authorization letter for Authorized signatory / self-attestation Letter for Owner
• Challan /Payment Receipt /Transaction Receipt
• Duly filled Registration Form signed by owner / Authorized signatory

Registration Fee based on Number of Employees
No. of Employees                   Fees (Rs.)
No Employees                             250/-
1 to 9 Employees                        500/-
10 to 19 Employees                   3000/-
20 to 49 Employees                   8000/-
50 to 99 Employees                  15000/-
100 to 250 Employees              30000/-
251 to 500 Employees              35000/-
501 to 1000 Employees            45000/-
Above 1000 Employees           50000/-

New Registration

Looking for registering under Karnataka shops and establishment ? contact Mr. S Kumar @ 09902977233 or visit www.saiconsultingservices.com 


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An MBA in finance, I like to cover the wide range of topics related to Taxation, SEBI, Finance and anything that is Public Helpful. The motive is always to make it simpler for the taxpayers understand the system better and take informed decisions.

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