The Karnataka Shops and Establishment Act regulates the operations of shops and commercial establishments. The Karnataka Shops and Establishment Act was introduced to regulate the hours of work, annual leave with wages, wages and compensation, employment of women and children and other aspects of shops or commercial establishment

The Shops and Establishment Act has been enacted by various State Governments to regulate the conditions of work of employees in shops, commercial undertakings, restaurants, etc., All commercial establishments must abide by The Weekly Holiday Act, 1942 enacted by the Central Government which governs the grant of holidays. However, there is no specific Central Government Act which comprehensively governs hours of work, payment of wages, health and safety in commercial establishments. To bridge this gap, state Governments have enacted a Shops and Establishment Act to help regulate the conduct of commercial establishments within their jurisdiction. 

The Karnataka Shops and Commercial Establishment Act extends to the whole state of Karnataka. All shops and commercial establishments except those exempted are required to comply with the Karnataka Shops and Commercial Establishment Act.

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The Karnataka Shop and Establishment Act defines a shop as:

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“A “shop” means any premises where any trade or business is carried on or where services are rendered to customers, and includes offices, storerooms, godowns, or warehouses, whether in the same premises or otherwise, used in connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop fall within the scope of the Factories Act, 1948.”

The Karnataka Shops and Establishment Act defines a commercial establishment as:

“The “commercial establishment” means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theater or any other place of public amusement or entertainment and includes such establishments as the State Government may by notification declared to be a commercial establishment for the purposes of this Act;”

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Shops and Establishment Act Registration

 

New shops or commercial establishments in Bangalore or Karnataka are required to apply for Karnataka Shops and Establishment Act Registration within 30 days of commencing operations. The Shops and Establishment Act Registration must be submitted in the prescribed format to the Labour Inspector of the area concerned. The following information must be provided as a part of the Shop and Establishment Act Registration application:

• The name of the employer and manager, if any

• The postal address of the establishment;

• The name, if any, of the establishment; and

• Such other particulars as may be prescribed.
   

On submission of the application, the Inspect would verify and provide the Shops and Establishment Act Registration. All Karnataka Shops and Establishment Act registrations are valid for a period of 5 years and can be renewed.
 

Benefits of Shop and Establishment License:

By registering, the owner of the shops or establishments can get these benefits below: 

• It helps to open a current account for your business.

• It lets you quickly get loans from banks or financial institutions. 

• You will take advantage of the tax incentives, power tariff, and state government exemption. 

• It helps display evidence of your shop registration when any State Government Labor Department or Municipality inspector comes to your office premises. 

• You can do any registration- operation through the government online portal system.

 

Documents required to upload for registration:

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When opening a business and starting its registration process you are well aware that certain documentation must always be given to the relevant authorities at various stages of your existence. Therefore, to register with Karnataka Shop and Establishment Act you need the scanned copies of the documents listed below. 

• Identity/Address Proof of the owner (Aadhar card/ Driving license/Voter Card etc.)

• Incorporation Certificate/Memorandum of Article (In Case of Private Ltd. Company)

• The authorization letter for Authorized signatory/self-attestation Letter for Owner

• Challan/Payment Receipt /Transaction Receipt

• Duly filled Registration Form signed by owner/Authorized signatory